Employee Benefits

The Company has a 2002 stock option plan which allows for stock option awards of the Company’s common stock to eligible directors and key employees of the Company. The option price is determined by a committee of the board of directors at the time of the grant and may not be less than 100% of the market value of the common stock on the date of the grant. For options granted under the 2002 stock option plan, when granted, the options vest over periods up to 4 or 5 years from grant date or upon death, disability, or qualified retirement. All options must be exercised within a 10-year period from grant date. The Company may grant either incentive stock options, which qualify for special federal income tax treatment, or non-qualified stock options, which do not receive such tax treatment. The Company’s stockholders have authorized 882,876 shares for the plan, of which 77,777 have been issued or retired upon the exercise of the option granted under the plan, 650,436 are granted and outstanding and no shares are available to be granted at March 31, 2015 within this plan. All share and share amounts related to employee benefits have been updated to reflect the completion of the second-step conversion on April 8, 2013 at a conversion ratio of 1.2471. As of March 31, 2015, 389,917 shares have vested under this plan.

In addition to the plan above, on December 19, 2013, the Company's stockholders approved the 2013 Equity Incentive Plan, which allows for stock option awards of the Company’s common stock to eligible directors and key employees of the Company. The option price is determined by a committee of the board of directors at the time of the grant and may not be less than 100% of the market value of the common stock on the date of the grant. When granted, the options vest from one year to five years from grant date or upon death or disability. All options must be exercised within a 10-year period from the grant date. The Company may grant either incentive stock options, which qualify for special federal income tax treatment, or non-qualified stock options, which do not receive such tax treatment. The Company’s stockholders have authorized 1,428,943 shares for the plan, of which 971,680 were granted and outstanding as of March 31, 2015, with the remaining 457,263 shares available to be granted at March 31, 2015. During the six months ended March 31, 2015, 194,335 options from this plan vested.

The following table summarizes activity for shares under option and weighted average exercise price per share:



	Shares		Weighted average exercise price/share		Weighted average remaining life (years)
Options outstanding – September 30, 2014	1,627,739		$	9.90	8
Options exercised	(1,316	)	8.82		4
Options forfeited	(4,307	)	8.82		4
Options granted	—		—		—
Options outstanding – March 31, 2015	1,622,116		$	9.91	7
Options exercisable – March 31, 2015	584,252		$	9.51	6

The stock price at March 31, 2015 was greater than the exercise prices on 1,622,116 options outstanding and therefore had an intrinsic value of $2,583,761. The total intrinsic value of all 584,252 shares exercisable at March 31, 2015 was $1,164,619.

Stock option expense was $165,497 and $143,662 for the six months ended March 31, 2015 and 2014, respectively. The following table summarizes information about the options outstanding at March 31, 2015:



Number of options outstanding at March 31, 2015		Remaining contractual life in years	Exercise price per share
	387,922	4	$	8.82
	174,594	5	$	8.18
	66,720	6	$	7.22
	16,212	7	$	7.34
	4,988	7	$	7.79
	971,680	9	$	10.89
	1,622,116

The Company has a Charter Financial Corporation 2001 Recognition and Retention Plan for key employees and directors. As of March 31, 2015, 9,355 shares remain in the trust and have not yet vested.

In addition to the above, the Company implemented the Charter Financial Corporation 2013 Equity Incentive Plan as described above, which has 571,577 shares authorized, and during the year ended September 30, 2014, the Company granted 360,092 shares of restricted stock to key employees and directors. During the six months ended March 31, 2015, 72,015 shares vested. The remaining 211,485 shares are available to be granted at March 31, 2015.



	Shares	Weighted average grant date fair value per award
Unvested restricted stock awards - September 30, 2014	369,447	$	10.82
Granted	—	—
Vested	72,015	10.89
Canceled or expired	—	—
Unvested restricted stock awards – March 31, 2015	297,432	$	10.80

Grants between January 1, 2009 and December 1, 2013 will be expensed to the earlier of scheduled vesting or substantive vesting which is when the recipient becomes qualified for retirement at age 65. Grants subsequent to December 1, 2013 will be expensed to the scheduled vesting.