Stock-Based Compensation

9 Months Ended

Jun. 30, 2024

Stock-Based Compensation

Stock-Based Compensation

Note 11.  Stock-Based Compensation

Restricted Stock

The following table summarizes the activity under the 2020 Incentive Compensation Plan with respect to restricted stock for the nine months ended June 30, 2024:

		Weighted
		Average Fair
	Number of	Value At
	Shares	Grant Date
Unvested at September 30, 2023	89,843	$	37.17
Granted	38,675	$	48.63
Forfeited / Canceled	(100)	$	46.46
Vested	(42,283)	$	26.56
Unvested at June 30, 2024	86,135	$	47.51
Expected to vest	86,135	$	47.51

Compensation expense related to restricted stock for the three months ended June 30, 2023 and 2024 was $298 and $401, respectively, and for the nine months ended June 30, 2023 and 2024 was $945 and $1,278, respectively.  The remaining unrecognized compensation expense related to restricted stock at June 30, 2024 was $2,049, to be recognized over a weighted average period of 1.28 years.  During the first nine months of fiscal 2024, the Company repurchased 32,675 shares of stock from employees at an average purchase price of $47.18 to satisfy required withholding taxes upon vesting of restricted stock-based compensation.

Deferred Restricted Stock

The following table summarizes the activity under the 2016 Incentive Compensation Plan and the 2020 Incentive Compensation Plan with respect to deferred restricted stock for the nine months ended June 30, 2024:  

		Weighted
		Average Fair
	Number of	Value At
	Shares	Grant Date
Unvested and deferred at September 30, 2023	8,974	$	49.19
Granted	5,575	$	48.63
Vested and deferred	(8,974)	$	49.19
Unvested and deferred at June 30, 2024	5,575	$	48.63
Vested and deferred at June 30, 2024	30,325	$	36.61

Compensation expense related to deferred restricted stock for the three months ended June 30, 2023 and 2024 was $110 and $68, respectively, and for the nine months ended June 30, 2023 and 2024 was $269 and $250, respectively. The remaining unrecognized compensation expense related to deferred restricted stock at June 30, 2024 was $113, to be recognized over a weighted average period of 0.42 years.  

Performance Shares

The following table summarizes the activity under the 2020 Incentive Compensation Plan with respect to performance shares for the nine months ended June 30, 2024:  

		Weighted
		Average Fair
	Number of	Value At
	Shares	Grant Date
Unvested at September 30, 2023	70,749	$	48.60
Granted	24,375	$	60.40
Vested	(31,804)	$	28.23
Forfeited / Canceled	—	$	0.00
Unvested at June 30, 2024	63,320	$	63.37

During the first nine months of fiscal 2024, 31,804 performance share awards vested, which resulted in the issuance of 39,756 shares of stock to certain employees.  The Company repurchased 17,481 shares of stock from employees at an average purchase price of $45.16 to satisfy required withholding taxes upon release of these vested performance share awards.  Compensation expense related to the performance shares for the three months ended June 30, 2023 and 2024 was $309 and $354, respectively, and for the nine months ended June 30, 2023 and 2024 was $915 and $975, respectively.  The remaining unrecognized compensation expense related to performance shares at June 30, 2024 was $1,872, to be recognized over a weighted average period of 1.32 years.

Stock Options

The Company has elected to use the Black-Scholes option pricing model to estimate fair value, which incorporates various assumptions including volatility, expected life, risk-free interest rates and dividend yields. The volatility is based on historical volatility of the Company’s common stock over the most recent period commensurate with the estimated expected term of the stock option granted. The Company uses historical volatility because management believes such volatility is representative of prospective trends. The expected term of an award is based on historical exercise data. The risk-free interest rate assumption is based upon observed interest rates appropriate for the expected term of the awards.  The dividend yield assumption is based on the Company’s history and expectations regarding dividend payouts at the time of the grant.   The following assumptions were used for grants during the nine months ended June 30, 2024:

	Fair		Dividend		Risk-free		Expected		Expected
Grant Date	Value		Yield		Interest Rate		Volatility		Life
November 21, 2023	$	18.48	1.81	%	4.44	%	43.63	%	5	years

The stock-based employee compensation expense for stock options for the three months ended June 30, 2023 and 2024 was $149 and $154, respectively, and for the nine months ended June 30, 2023 and 2024 was $500 and $459, respectively.  The remaining unrecognized compensation expense at June 30, 2024 was $945, to be recognized over a weighted average vesting period of 1.54 years.    

The following table summarizes the activity under the 2007 Incentive Compensation Plan, the 2016 Incentive Compensation Plan and the 2020 Incentive Compensation Plan with respect to stock options for the nine months ended June 30, 2024 and provides information regarding outstanding stock options:

						Weighted
		Aggregate		Weighted		Average
		Intrinsic		Average		Remaining
	Number of	Value		Exercise		Contractual
	Shares	(000s)		Prices		Life
Outstanding at September 30, 2023	498,548			$	33.96
Granted	42,725			$	48.63
Exercised	—			$	0.00
Forfeited/Surrendered	—			$	0.00
Outstanding at June 30, 2024	541,273	$	12,763	$	35.12	5.82	yrs.
Vested or expected to vest	517,726	$	12,193	$	35.15	5.04	yrs.
Exercisable at June 30, 2024	463,917	$	11,936	$	32.97	5.32	yrs.