Stock Compensation Plans

9 Months Ended

Jun. 30, 2020

Share-based Payment Arrangement, Noncash Expense [Abstract]

STOCK COMPENSATION PLANS Under the Company’s 2003 Stock Option Plan, the Company was able to grant options for up to 300,000 shares of common stock to employees, officers, directors and directors emeriti. Under the Company's 2014 Equity Incentive Plan, the Company is able to grant options and awards of restricted stock (with or without performance measures) for up to 352,366 shares of common stock to employees, officers, directors and directors emeriti. Under the Company's 2019 Equity Incentive Plan, which

was approved by shareholders on January 28, 2020, the Company is able to grant options and awards or restricted stock (with or without performance measures) for up to 350,000 shares of common stock to employees, officers, directors and directors emeriti. Shares issued may be purchased in the open market or may be issued from authorized and unissued shares. The exercise price of each option equals the fair market value of the Company’s common stock on the date of grant. Generally, options and restricted stock vest in 20% annual installments on each of the five anniversaries from the date of the grant, and options generally have a maximum contractual term of ten years from the date of grant. At June 30, 2020, there were 38,126 shares of common stock available which may be awarded as options or restricted stock pursuant to future grant under the 2014 Equity Incentive Plan. At June 30, 2020, there were 350,000 shares of common stock available which may be awarded as options or restricted stock pursuant to future grant under the 2019 Equity Incentive Plan.

At both June 30, 2020 and 2019, there were no unvested restricted stock awards. There were no restricted stock grants awarded during the nine months ended June 30 , 2020 and 2019.

Stock option activity for the nine months ended June 30, 2020 and 2019 is summarized as follows:


	Nine Months Ended June 30, 2020				Nine Months Ended June 30, 2019
	Number of Shares	Weighted Average Exercise Price		Number of Shares	Weighted Average Exercise Price
Options outstanding, beginning of period	378,304	$	18.15	380,820	$	16.03
Exercised	(37,975)	10.31		(37,756)	9.00
Granted	1,000	26.50		—	—
Forfeited	(9,050)	25.10		(3,900)	18.63
Options outstanding, end of period	332,279	$	18.88	339,164	$	16.79

The weighted average assumptions for options granted during the nine months ended June 30, 2020 were as follows:


Expected volatility	29		%
Expected life (in years)	5
Expected dividend yield	3.36		%
Risk free interest rate	1.61		%
Grant date fair value per share	$	4.98

The aggregate intrinsic value of options exercised during the nine months ended June 30, 2020 and 2019 was $640,000 and $751,000, respectively.

At June 30, 2020, there were 141,570 unvested options with an aggregate grant date fair value of $559,000, all of which the Company assumes will vest. The aggregate intrinsic value of unvested options at June 30, 2020 was $118,000. There were 13,100 options vested during the nine months ended June 30, 2020.

At June 30, 2019, there were 155,750 unvested options with an aggregate grant date fair value of $485,000. There were 37,300 options with an aggregate grant date fair value of $88,000 that vested during the nine months ended June 30, 2019.

Additional information regarding options outstanding at June 30, 2020 is as follows:


	Options Outstanding							Options Exercisable
Range of Exercise Prices ($)	Number	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Number	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)
$ 4.01 - 4.55	1,000	$	4.01	1.4	1,000	$	4.01	1.4
5.86 - 6.00	19,100	5.97		2.3	19,100	5.97		2.3
9.00	37,425	9.00		3.3	37,425	9.00		3.3
10.26 - 10.71	89,464	10.59		4.8	80,414	10.58		4.8
15.67	42,800	15.67		6.3	23,000	15.67		6.3
26.50 - 27.14	46,640	27.13		9.3	—	N/A		N/A
29.69	53,000	29.69		7.3	21,200	29.69		7.3
31.80	42,850	31.80		8.3	8,570	31.80		8.3
	332,279	$	18.88	6.1	190,709	$	13.46	4.8

The aggregate intrinsic value of options outstanding at June 30, 2020 and 2019 was $1.38 million and $4.53 million, respectively.

As of June 30, 2020, unrecognized compensation cost related to unvested stock options was $466,000, which is expected to be recognized over a weighted average life of 2.15 years.