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Other Stock Plans
 12 Months Ended
Sep. 30, 2020
Share-based Payment Arrangement [Abstract]  
Other Stock Plans COMMON STOCK OPTIONS
The KESOP provides for the issuance of common stock options to officers and certain other full-time salaried employees to acquire shares of the Company’s common stock. As of September 30, 2020, the number of shares available for future grants was 23,000.
FASB ASC No. 718 - Compensation-Stock Compensation requires that compensation expense be recognized for the issuance of equity instruments to employees. During the fiscal year ended 2020, the Board approved stock option grants to certain officers. As required by the KESOP, each option's exercise price per share equaled the fair value of the Company's common stock on the grant date. Pursuant to the plan, the options vest over a six-month period and are exercisable over a ten-year period from the date of issuance.
As the Company's stock options are not traded on the open market, the fair value of each grant is estimated on the date of grant using the Black-Scholes option pricing model including the following assumptions:
Years Ended September 30,
20202019
Expected volatility31.53%N/A
Expected dividends2.74%N/A
Expected exercise term (years)7.00N/A
Risk-free interest rate0.51%N/A

The underlying methods regarding each assumption are as follows:
Expected volatility is based on the historical volatility of the daily closing price of the Company's common stock.
Expected dividend rate is based on historical dividend payout trends.
Expected exercise term is based on the average time historical option grants were outstanding before being exercised.
Risk-free interest rate is based on the 7-year Treasury rate on the date of option grant.
Forfeitures are recognized when they occur.

Stock option transactions under the Company's plans are summarized below.
Number of SharesWeighted- Average Exercise PriceWeighted- Average Remaining Contractual Terms (years)
Aggregate Intrinsic Value1
Options outstanding, September 30, 2018100,000 14.34 6.61,237,286 
    Options granted— — 
    Options exercised(31,508)13.08 
    Options expired— — 
    Options forfeited— — 
Options outstanding, September 30, 201968,492 14.91 6.2981,170 
    Options granted13,000 27.87 
    Options exercised(29,992)14.65 
    Options expired— — 
    Options forfeited— — 
Options outstanding, September 30, 202051,500 $18.34 6.4$320,797 
Vested and exercisable at September 30, 202051,500 $18.34 6.4$320,797 
1Aggregate intrinsic value includes only those options where the exercise price is below the market price.
Years Ended September 30,
20202019
Weighted-average grant date option fair value$6.26 $— 
Stock option expense81,380 — 
Intrinsic value of options exercised411,638 456,002 
Proceeds from exercise of stock options439,509 412,179 
OTHER STOCK PLANS
Dividend Reinvestment and Stock Purchase Plan
The Company offers a DRIP Plan to shareholders of record for the reinvestment of dividends and the purchase of up to $100,000 per year in additional shares of common stock of the Company. Under the DRIP, the Company issued 28,191 and 26,716 shares in 2020 and 2019, respectively. As of September 30, 2020, the Company had 362,322 shares of stock available for issuance under the DRIP.
Restricted Stock Plan for Outside Directors
The Board of Directors of the Company implemented the RSPD in 1997. Under the RSPD, each director may elect annually to have up to 100% of his or her fees paid in shares of common stock ("Director Restricted Stock"); however, a minimum of 40% of the monthly retainer fee must be paid to each non-employee director of Resources in shares of Director Restricted Stock until such time as the director has accumulated at least 10,000 shares. The number of shares of Director Restricted Stock awarded each month is determined based on the closing sales price of Resources' common stock on the NASDAQ Global Market on the first business day of the month. The Director Restricted Stock issued under the Plan vests only in the case of a participant's death, disability, retirement, or in the event of a change in control of Resources. The Director Restricted Stock may not be sold, transferred, assigned or pledged by the participant until the shares have vested under the terms of the Plan. The shares of Director Restricted Stock will be forfeited to Resources by a participant's voluntary resignation during his or her term on the Board or removal for cause as a director.
The Company assumes all directors will complete their term and there will be no forfeiture of the Director Restricted Stock. Since the inception of the RSPD, no director has forfeited any shares of Director Restricted Stock. The Company recognizes as compensation the market value of the Director Restricted Stock in the period it is issued.
The following table reflects the director compensation activity pursuant to the Plan:
20202019
SharesWeighted-Average Fair Value on Date of GrantSharesWeighted-Average Fair Value on Date of Grant
Beginning of year balance104,680 $12.51 98,302 $11.51 
  Granted9,193 26.28 6,378 27.93 
  Vested(14,803)10.68 — — 
  Forfeited— — — — 
End of year balance99,070 $14.06 104,680 $12.51 

The fair market value of the Director Restricted Stock included in compensation during fiscal 2020 and 2019 was $241,617 and $178,100, respectively. No Director Restricted Stock was forfeited during fiscal 2020 or 2019.
As of September 30, 2020, the Company had 52,029 shares available for issuance under the RSPD.
RGC Resources, Inc. Restricted Stock Plan
The Board of Directors of the Company implemented the RSPO in 2017 following approval by the shareholders at the Company's annual meeting held in February 2017. Under the RSPO, the Compensation Committee of the Board of Directors may grant shares of common stock ("Officer Restricted Stock") that vest over time to key employees and officers for the purpose of attracting and retaining those individuals essential to the operation and growth of the Company. The RSPO provides for certain restrictions and non-transferability requirements until minimum levels of ownership are obtained. Such restrictions may continue beyond the vesting period.
The Company assumes all officers will complete their requirements and there will be no forfeiture of the Officer Restricted Stock.
The following table reflects the officer compensation activity pursuant to the RSPO:
20202019
SharesWeighted-Average Fair Value on Date of GrantSharesWeighted-Average Fair Value on Date of Grant
Beginning of year balance10,185 $28.65 6,734 $26.33 
  Granted14,951 28.17 10,227 29.80 
  Vested(18,321)28.30 (6,776)28.08 
  Forfeited— — — — 
End of year balance6,815 $28.55 10,185 $28.65 
The fair market value of the Officer Restricted Stock included as compensation during fiscal 2020 and 2019 was $450,677 and $282,365, respectively. As of September 30, 2020, the Company had 413,718 shares available for issuance under the RSPO.
Stock Bonus Plan
Shares from the Stock Bonus Plan may be issued to certain employees and management personnel in recognition of their performance and service. Under the Stock Bonus Plan, the Company issued no shares in 2020 and 2019. As of September 30, 2020 the Company had 4,785 shares of stock available for issuance under the Stock Bonus Plan. The Stock Bonus Plan is currently inactive.