Stock-Based Compensation

6 Months Ended

Mar. 31, 2012

Stock-Based Compensation [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Stock-Based Compensation

Stock-based compensation expense is included within 'compensation and benefits' in the condensed consolidated income statements and totaled $1.3 million and $0.6 million for the three months ended March 31, 2012 and 2011, respectively, and $2.3 million and $1.1 million for the six months ended March 31, 2012 and 2011, respectively.

Stock Option Plans

The Company sponsors a stock option plan for its directors, officers, employees and consultants. As of March 31, 2012, 866,310 shares were authorized for future grant under this plan. Awards that expire or are canceled generally become available for issuance again under the plan. We settle stock option exercises with newly issued shares of common stock.

Fair value is estimated at the grant date based on a Black-Scholes-Merton option-pricing model using the following weighted-average assumptions:

	Six Months Ended March 31,
	2012
Expected stock price volatility	57	%
Expected dividend yield	—	%
Risk free interest rate	1.53	%
Average expected life (in years)	7.86

Expected stock price volatility rates are based on the historical volatility of the Company’s common stock. The Company has not paid dividends in the past and does not currently expect to do so in the future. Risk free interest rates are based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected life of the option or award. The average expected life represents the estimated period of time that options or awards granted are expected to be outstanding, based on the Company’s historical share option exercise experience for similar option grants. The weighted average fair value of options issued during the six months ended March 31, 2012 was $13.38.

The following is a summary of stock option activity for the six months ended March 31, 2012:

	Shares Available for Grant		Number of Options Outstanding		Weighted Average Price		Weighted Average Grant Date Fair Value		Weighted Average Remaining Term (in years)	Aggregate Intrinsic Value ($ millions)
Balances as of September 30, 2011	750,481		1,344,646		$	21.05	$	8.93	3.06	$	9.8
Additional shares authorized	1,000,000
Granted	(925,000	)	925,000		$	25.71	$	13.57
Exercised			(151,818	)	$	9.57	$	6.69
Forfeited	2,500		(2,500	)	$	21.83	$	10.88
Expired	38,329		(71,516	)	$	40.04	$	13.24
Balances as of March 31, 2012	866,310		2,043,812		$	23.34	$	11.04	5.84	$	8.4
Exercisable as of March 31, 2012			801,243		$	26.24	$	10.84	3.03	$	4.5

The total compensation cost not yet recognized for non-vested awards of $13.2 million as of March 31, 2012 has a weighted-average period of 6.66 years over which the compensation expense is expected to be recognized. The total intrinsic value of options exercised during the six months ended March 31, 2012 and 2011 was $2.2 million, and $1.6 million, respectively.

On February 23, 2012, the Company's shareholders approved an amendment to the stock option plan that increased the maximum number of shares that may be issued under the stock option plan from 2,250,000 to 3,250,000 shares.

Restricted Stock Plan

The Company sponsors a restricted stock plan for its directors, officers and employees. On January 31, 2012, the Company's 2007 restricted stock plan expired. On February 23, 2012, shareholders approved the Company's 2012 restricted stock plan authorizing up to 1.5 million shares to be issued. As of March 31, 2012, 1,489,472 shares were authorized for future grant under the 2012 restricted stock plan. Awards that expire or are canceled generally become available for issuance again under the plan. The Company utilizes newly issued shares of common stock to make restricted stock grants.

The following is a summary of restricted stock activity through March 31, 2012:

	Shares Available for Grant		Number of Shares Outstanding		Weighted Average Grant Date Fair Value		Weighted Average Remaining Term (in years)	Aggregate Intrinsic  Value ($ millions)
Balances as of September 30, 2011	290,963		299,118		$	17.71	1.92	$	6.2
Termination of 2007 Plan	(25,728	)
2012 Plan shares authorized by shareholders	1,500,000
Granted	(275,763	)	275,763		$	24.71
Vested			(105,272	)	$	15.08
Balances as of March 31, 2012	1,489,472		469,609		$	19.83	2.25	$	9.9

The total compensation cost not yet recognized of $8.8 million as of March 31, 2012 has a weighted-average period of 2.25 years over which the compensation expense is expected to be recognized. Compensation expense is amortized on a straight-line basis over the vesting period. Restricted stock grants are included in the Company’s total issued and outstanding common shares.