Stock Compensation Plans

3 Months Ended

Dec. 31, 2022

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, 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, of which 300,000 shares are reserved to be awarded to employees, including officers, and 50,000 shares are reserved to be awarded to 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 December 31, 2022, there were 2,196 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 December 31 2022, there were 196,700 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 December 31, 2022 and 2021, there were no unvested restricted stock awards. There were no restricted stock grants awarded during the three months ended December 31, 2022 and 2021.

Stock option activity for the three months ended December 31, 2022 and 2021 is summarized as follows:


	Three Months Ended December 31, 2022			Three Months Ended December 31, 2021
	Number of Shares	Weighted Average Exercise Price		Number of Shares	Weighted Average Exercise Price
Options outstanding, beginning of period	421,925	$	23.30	406,815	$	21.62
Exercised	(19,815)	20.01		(8,900)	14.63
Granted	—	—		1,000	27.25
Forfeited	(1,800)	29.68		(11,594)	25.28
Options outstanding, end of period	400,310	$	23.43	387,321	$	21.70

The fair value of stock options is determined using the Black-Scholes valuation model.

There were no options granted during the three months ended December 31, 2022.

The aggregate intrinsic value of options exercised during the three months ended December 31, 2022 and 2021 was $244,000 and $123,000, respectively.

At December 31, 2022, there were 191,710 unvested options with an aggregate grant date fair value of $1.08 million, all of which the Company assumes will vest. The aggregate intrinsic value of unvested options at December 31, 2022 was $1.61 million. There were 200 options vested during the three months ended December 31, 2022 with a total fair value of $652.

At December 31, 2021, there were 176,670 unvested options with an aggregate grant date fair value of $844,000. There were 200 options that vested during the three months ended December 31, 2021 with a total fair value of $1,000.

Additional information regarding options outstanding at December 31, 2022 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)
9.00			14,000	$	9.00	0.8	14,000	$	9.00	0.8
10.26	-	10.71	47,000	10.56		2.2	47,000	10.56		2.2
15.67	-	19.13	77,700	16.53		6.6	40,410	16.18		5.4
26.50	-	27.40	110,660	27.31		8.7	22,180	27.14		6.8
28.23	-	29.69	115,950	28.78		7.2	57,150	29.35		5.7
31.80			35,000	31.80		5.8	27,860	31.80		5.8
			400,310	$	23.43	6.6	208,600	$	21.29	4.6

The aggregate intrinsic value of options outstanding at December 31, 2022 and 2021 was $4.28 million and $2.62 million, respectively.

As of December 31, 2022, unrecognized compensation cost related to unvested stock options was $1.04 million, which is expected to be recognized over a weighted average life of 2.42 years.