Stock Compensation Plans

12 Months Ended

Sep. 30, 2025

Share-Based Payment Arrangement, Noncash Expense [Abstract]

The Company has one active stock compensation plan: the 2019 Equity Incentive Plan. Under the Company's 2019 Equity Incentive Plan, the Company may grant options and awards of 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 and 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 equal annual installments commencing on the first anniversary of the grant date. Stock options generally vest over a five year period from the date of the grant with a maximum contractual term of ten years from the date of the grant. Restricted stock grants generally vest over a three or five-year term from the date of grant. At September 30, 2025, there were 129,855 shares of common stock available for future grants under 2019 Equity Incentive Plan. As of September 30, 2025, there were 161,450 shares outstanding that had been previously granted in the 2019 Plan, of which 68,300 were vested and 93,150 were unvested.

The Company's 2014 Equity Incentive Plan (the "2014 Plan") expired on January 27, 2025; therefore no further awards may be granted under the plan. As of September 30, 2025, there were 124,530 shares outstanding that had been previously granted in the 2014 Plan, of which 111,930 were vested and 12,600 were unvested.

Stock option activity for the years ended September 30, 2025, 2024 and 2023 is summarized as follows:


	Number of Shares	Weighted Average Exercise Price
Outstanding September 30, 2022	421,925	$	23.30
Options granted	1,000	33.40
Options exercised	(42,635)	16.38
Options forfeited	(11,140)	27.26
Outstanding September 30, 2023	369,150	24.00
Options granted	—	—
Options exercised	(45,150)	14.61
Options forfeited	(17,760)	27.07
Outstanding September 30, 2024	306,240	25.21
Options granted	—	—
Options exercised	(76,210)	21.84
Options forfeited	(14,500)	27.96
Outstanding September 30, 2025	215,530	$	26.22

The aggregate intrinsic value of options exercised during the years ended September 30, 2025, 2024 and 2023 was $768,000, $655,000 and $632,000, respectively.

The Company uses the Black-Scholes option pricing model to estimate the fair value of stock-based awards with the weighted average assumptions noted in the following table. The risk-free interest rate is based on the rate of a U.S. Treasury security with a similar term as the expected life of the stock option at the particular grant date. The expected life is based on historical data, vesting terms and estimated exercise dates. The expected dividend yield is based on the most recent quarterly dividend on an annualized basis in effect at the time that the options were granted, adjusted, if appropriate, for management's expectations regarding future dividends. The expected volatility is based on historical volatility of the Company’s stock price. There were 1,000 options granted during the year ended September 30, 2023 with an aggregate grant date fair value of $9,000. There were no options granted during the years ended September 30, 2025 and 2024.

The weighted average assumptions for options granted during the year ended September 30, 2023 was as follows:


	2023
Expected volatility	33		%
Expected life (in years)	5
Expected dividend yield	2.99		%
Risk free interest rate	3.58		%
Grant date fair value per share	$	8.65

There were 34,930 options that vested during the year ended September 30, 2025 with a total fair value of $191,000. There were 43,690 options that vested during the year ended September 30, 2024 with a total fair value of $235,000. There were 59,990 options that vested during the year ended September 30, 2023 with a total fair value of $316,000.

At September 30, 2025, there were 35,300 unvested options with an aggregate grant date fair value of $235,000, all of which the Company assumes will vest. The unvested options had an aggregate intrinsic value of $196,000 at September 30, 2025.

At September 30, 2024, there were 77,230 unvested options with an aggregate grant date fair value of $468,000.

Additional information regarding options outstanding at September 30, 2025 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)




15.67	-	19.13	42,150	$	16.54	3.9	42,050	$	16.53	3.9
26.50	-	27.40	73,260	27.33		6.2	49,860	27.30		5.9
28.23	-	29.69	76,900	28.75		4.6	65,700	28.84		4.3
31.80	-	33.40	23,220	31.87		3.2	22,620	31.24		3.1
			215,530	$	26.22	4.8	180,230	$	25.92	4.5

The aggregate intrinsic value of options outstanding at September 30, 2025, 2024 and 2023 was $1,523,000, $1,599,000 and $1,518,000, respectively.

As of September 30, 2025, unrecognized compensation cost related to non-vested stock options was $255,000, which is expected to be recognized over a weighted average period of 1.34 years. Total stock option compensation expense for the years ended September 30, 2025 and 2024 was $192,000 and $233,000, respectively.

During the year ended September 30, 2025, the Company granted a total of 35,350 shares of restricted stock from the 2019 plan subject to time-based vesting. During the year ended September 30, 2024, the Company granted a total of 28,815 shares of restricted stock from the 2019 plan subject to time-based vesting. During the year ended September 30, 2023, the Company granted a total of 26,150 shares of restricted stock from the 2019 Plan subject to time-based vesting.

The fair value of restricted stock awards is equal to the fair value of the Company's stock on the date of the grant. The related stock-based compensation expense is recorded over the requisite service period. At September 30, 2025, unrecognized compensation cost related to unvested restricted stock awards was $2,271,000, which is expected to be recognized over a weighted average period of 2.55 years. Total compensation expense related to restricted stock awards for the year ended September 30, 2025 and 2024 was $345,000 and $157,000, respectively.

The following table presents the activity related to restricted stock for the years ended September 30, 2025, 2024 and 2023:


	Time Based
	Number of Unvested Shares	Weighted Average Grant Date Fair Value
Outstanding, September 30, 2022	—	$	—
Granted	26,150	27.37
Forfeited	—	—
Issued	—	—
Outstanding, September 30, 2023	26,150	27.37
Granted	28,815	30.62
Forfeited	(200)	27.37
Issued	(5,750)	27.37
Outstanding, September 30, 2024	49,015	$	29.28
Granted	35,350	34.46
Forfeited	(2,150)	28.50
Issued	(11,765)	29.09
Outstanding, September 30, 2025	70,450	$	31.94