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Share-Based Compensation
 12 Months Ended
Sep. 30, 2021
Share-based Payment Arrangement [Abstract]  
Share-Based Compensation Share-Based Compensation
Share-based compensation expense is included in Compensation and benefits in the Consolidated Income Statements and totaled $13.9 million, $10.3 million and $8.1 million for the years ended September 30, 2021, 2020, and 2019, respectively.
Stock Option Plans
The Company sponsors a stock option plan for its directors, officers, employees and consultants. The 2013 Stock Option Plan, which was approved by the Company’s Board of Directors and shareholders, authorizes the Company to issue stock options covering up to 3.0 million shares of the Company’s common stock. As of September 30, 2021, there were 1.6 million shares authorized for future grant under this plan. Awards that expire or are canceled generally become available for issuance again under the 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:
Year Ended September 30,
 2021
2020 (1)
2019
Expected stock price volatility38 %— %27 %
Expected dividend yield— %— %— %
Risk free interest rate1.68 %— %1.86 %
Average expected life (in years)4.500.006.05
(1) There were no stock options granted under the plan during the year ended September 30, 2020.
Expected stock price volatility rates are primarily based on 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 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 years ended September 30, 2021, 2020, and 2019 was $19.83, $0.00, and $10.47, respectively.
The following is a summary of stock option activity for the year ended September 30, 2021:
Shares
Available for
Grant		Number of
Options
Outstanding		Weighted
Average 
Exercise Price		Weighted
Average
Grant Date
Fair Value		Weighted
Average
Remaining
Term
(in years)		Aggregate
Intrinsic
Value
($ millions)
Balances as of September 30, 2020724,483 1,408,036 $38.79 $11.38 4.16$17.4 
Additional shares authorized by shareholders1,000,000 — 
Granted(277,700)277,700 $58.64 $19.83 
Exercised— (333,121)$28.71 $12.74 
Forfeited122,014 (122,014)$47.13 $12.22 
Expired1,001 (1,001)$41.83 $9.04 
Balances as of September 30, 20211,569,798 1,229,600 $45.17 $12.82 4.21$25.5 
Exercisable at September 30, 2021237,040 $31.83 $11.94 0.56$8.1 
The total compensation cost not yet recognized for non-vested awards of $9.1 million as of September 30, 2021 has a weighted-average period of 2.15 years over which the compensation expense is expected to be recognized. The total intrinsic value of options exercised during the years ended September 30, 2021, 2020, and 2019 was $11.7 million, $4.2 million and $0.7 million, respectively.
The options outstanding as of September 30, 2021 broken down by exercise price are as follows:
Exercise PriceNumber of Options OutstandingWeighted Average Exercise PriceWeighted Average Remaining Term
(in Years)
$— -$5.00 — n/an/a
$5.00 -$10.00 — n/an/a
$10.00 -$15.00 — n/an/a
$15.00 -$20.00 — n/an/a
$20.00 -$25.00 — n/an/a
$25.00 -$30.00 149,706 $25.91 0.37
$30.00 -$35.00 — n/an/a
$35.00 -$40.00 80,729 $39.79 1.37
$40.00 -$45.00 739,315 $44.94 4.92
$45.00 -$50.00 — n/an/a
$50.00 -$55.00 — n/an/a
$55.00 -$60.00 259,850 $58.61 5.27
1,229,600 $30.75 5.64
Restricted Stock Plan
The Company sponsors a restricted stock plan for its directors, officers and employees. The Company’s 2017 restricted stock plan, which was approved by the Company’s Board of Directors and shareholders, authorizes up to 1.5 million shares to be issued. As of September 30, 2021, 0.6 million shares were authorized for future grant under the restricted stock plan. Awards that expire or are canceled generally become available for issuance again under the plan. The Company utilizes newly issued shares of common stock to make restricted stock grants.
The following is a summary of restricted stock activity through September 30, 2021:
Shares
Available for
Grant		Number of
Shares
Outstanding		Weighted
Average
Grant Date
Fair Value		Weighted
Average
Remaining
Term
(in years)		Aggregate
Intrinsic Value
($ millions)
Balances as of September 30, 2020861,454 484,346 $42.97 1.37$24.8 
Granted(307,204)307,204 $57.33 
Vested— (210,461)$43.11 
Forfeited4,048 (4,048)$41.81 
Balances as of September 30, 2021558,298 577,041 $50.57 1.26$38.0 
The total compensation cost not yet recognized of $21.3 million as of September 30, 2021 has a weighted-average period of 1.26 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.