Stock-Based Compensation

3 Months Ended

Dec. 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 $1.6 million and $1.0 million for the three months ended December 31, 2012 and 2011, respectively.

Stock Option Plan

The Company sponsored a stock option plan for its directors, officers, employees and consultants. The Company's current stock option plan expired on December 17, 2012. The Company's Board of Directors has approved a new stock option plan ("the 2013 Stock Option Plan"), which is subject to shareholder approval at the 2013 annual meeting of shareholders, and would authorize the Company to issue stock options covering up to 1.0 million shares of the Company's common stock. If shareholder approval is not obtained, the stock option plan shall terminate. Options may be granted prior to the obtaining of such shareholder approval, but the exercise of such options shall be conditioned upon such shareholder approval. As of December 31, 2012, there were 1.0 million shares authorized for future grant under this plan. The Company settles 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:

	Three Months Ended December 31, 2012
Expected stock price volatility	35%
Expected dividend yield	—%
Risk free interest rate	0.37%
Average expected life (in years)	2.88

Expected stock price volatility rates are based primarily on the historical volatility. 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 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 three months ended December 31, 2012 was $4.31.

The following is a summary of stock option activity for the three months ended December 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, 2012	921,412		1,890,634		$	23.36	$	11.11	5.45	$	6.0
Expiration of 2003 Plan	(828,321	)
Additional shares authorized	1,000,000
Granted	(100,000	)	100,000		$	17.92	$	4.31
Exercised			(25,667	)	$	7.10	$	3.27
Forfeited	6,666		(6,666	)	$	7.26	$	3.38
Expired	243		(243	)	$	15.02	$	6.67
Balances as of December 31, 2012	1,000,000		1,958,058		$	23.35	$	10.89	5.20	$	4.7
Exercisable as of December 31, 2012			831,845		$	24.07	$	10.07	2.32	$	3.4

The total compensation cost not yet recognized for non-vested awards of $11.5 million as of December 31, 2012 has a weighted-average period of 6.33 years over which the compensation expense is expected to be recognized. The total intrinsic value of options exercised during the three months ended December 31, 2012 and 2011 was $0.5 million, and $0.3 million, respectively.

Restricted Stock Plan

The Company sponsors a restricted stock plan for its directors, officers and employees. As of December 31, 2012, 1,243,127 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 December 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, 2012	1,420,114		512,124		$	22.09	1.81	$	9.8
Granted	(177,034	)	177,034		$	17.84
Vested			(157,408	)	$	20.85
Forfeited	47		(47	)	$	21.40
Balances as of December 31, 2012	1,243,127		531,703		$	21.04	2.30	$	9.3

The total compensation cost not yet recognized of $9.7 million as of December 31, 2012 has a weighted-average period of 2.30 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.