Stock-Based Compensation

6 Months Ended

Mar. 31, 2013

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 $1.9 million and $1.3 million for the three months ended March 31, 2013 and 2012, respectively, and $3.5 million and $2.3 million for the six months ended March 31, 2013 and 2012, respectively.

Stock Option Plan

The Company sponsored a stock option plan for its directors, officers, employees and consultants. The Company's Board of Directors approved a new stock option plan ("the 2013 Stock Option Plan"), which was approved by the shareholders at the 2013 annual meeting, and authorized the Company to issue stock options covering up to 1.0 million shares of the Company's common stock. As of March 31, 2013, 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:

	Six Months Ended March 31, 2013
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 six months ended March 31, 2013 was $4.21.

The following is a summary of stock option activity for the six months ended March 31, 2013:

	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		$	17.53	$	4.21
Exercised			(107,984	)	$	4.43	$	2.37
Forfeited	6,666		(16,998	)	$	7.58	$	3.54
Expired	243		(243	)	$	15.02	$	6.67
Balances as of March 31, 2013	1,000,000		1,865,409		$	24.29	$	11.31	5.18	$	3.5
Exercisable as of March 31, 2013			749,637		$	26.32	$	10.94	2.27	$	2.3

The total compensation cost not yet recognized for non-vested awards of $11.0 million as of March 31, 2013 has a weighted-average period of 6.14 years over which the compensation expense is expected to be recognized. Compensation expense is amortized on a straight-line basis over the vesting period. The total intrinsic value of options exercised during the six months ended March 31, 2013 and 2012 was $1.7 million, and $2.2 million, respectively.

Restricted Stock Plan

The Company sponsors a restricted stock plan for its directors, officers and employees. As of March 31, 2013, 1,218,953 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, 2013:

	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	(202,172	)	202,172		$	17.83
Vested			(196,066	)	$	21.15
Forfeited	1,011		(6,953	)	$	24.14
Balances as of March 31, 2013	1,218,953		511,277		$	20.74	2.16	$	8.9

The total compensation cost not yet recognized of $8.6 million as of March 31, 2013 has a weighted-average period of 2.16 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.