Stock-Based Compensation

6 Months Ended

Mar. 31, 2022

Stock-Based Compensation

Stock-Based Compensation

Note 11.  Stock-Based Compensation

Restricted Stock

The following table summarizes the activity under the 2016 and 2020 Incentive Compensation Plans with respect to restricted stock for the six months ended March 31, 2022:

		Weighted
		Average Fair
	Number of	Value At
	Shares	Grant Date
Unvested at September 30, 2021	142,269	$	26.78
Granted	31,704	$	44.07
Forfeited / Canceled	(6,522)	$	28.79
Vested	(44,615)	$	29.88
Unvested at March 31, 2022	122,836	$	30.01
Expected to vest	122,836	$	30.01

Compensation expense related to restricted stock for the three months ended March 31, 2021 and 2022 was $524 and $352, respectively and for the six months ended March 31, 2021 and 2022 was $1,019 and $744, respectively. The remaining unrecognized compensation expense related to restricted stock at March 31, 2022 was $1,949, to be recognized over a weighted average period of 1.30 years.  During the first six months of fiscal 2022, the Company repurchased 13,798 shares of stock from employees at an average purchase price of $42.52 to satisfy required withholding taxes upon vesting of restricted stock-based compensation.

Deferred Restricted Stock

The following table summarizes the activity under the 2016 and 2020 Incentive Compensation Plans with respect to deferred restricted stock for the six months ended March 31, 2022.  

		Weighted
		Average Fair
	Number of	Value At
	Shares	Grant Date
Unvested and deferred at September 30, 2021	7,398	$	22.64
Granted	3,801	$	44.07
Vested and deferred	(7,398)	$	22.64
Unvested and deferred at March 31, 2022	3,801	$	44.07
Vested and deferred at March 31, 2022	20,500	$	29.23

Compensation expense related to deferred restricted stock for the three months ended March 31, 2021 and 2022 was $42 and $42, respectively, and for the six months ended March 31, 2021 and 2022 was $104 and $84, respectively. The remaining unrecognized compensation expense related to deferred restricted stock at March 31, 2022 was $112, to be recognized over a weighted average period of 0.67 years.  During the first six months of fiscal 2022, the Company repurchased 1,151 shares of stock from employees at an average purchase price of $41.78 to satisfy required withholding taxes upon release of deferred restricted stock-based compensation.

Performance Shares

The following table summarizes the activity under the 2016 and 2020 Incentive Compensation Plans with respect to performance shares for the six months ended March 31, 2022.  

		Weighted
		Average Fair
	Number of	Value At
	Shares	Grant Date
Unvested at September 30, 2021	87,193	$	37.24
Granted	21,520	$	61.04
Vested	(24,121)	$	43.42
Forfeited / Canceled	(8,172)	$	42.97
Unvested at March 31, 2022	76,420	$	41.37

Compensation expense related to the performance shares for the three months ended March 31, 2021 and 2022 was $287 and $224, respectively, and for the six months ended March 31, 2021 and 2022 was $509 and $453, respectively.  The remaining unrecognized compensation expense related to performance shares at March 31, 2022 was $1,811, to be recognized over a weighted average period of 1.59 years.

Stock Options

The Company has elected to use the Black-Scholes option pricing model to estimate fair value, which incorporates various assumptions including volatility, expected life, risk-free interest rates and dividend yields. The volatility is based on historical volatility of the Company’s common stock over the most recent period commensurate with the estimated expected term of the stock option granted. The Company uses historical volatility because management believes such volatility is representative of prospective trends. The expected term of an award is based on historical exercise data. The risk-free interest rate assumption is based upon observed interest rates appropriate for the expected term of the awards.  The dividend yield assumption is based on the Company’s history and expectations regarding dividend payouts at the time of the grant.   The following assumptions were used for grants during fiscal year 2022:

	Fair		Dividend		Risk-free		Expected		Expected
Grant Date	Value		Yield		Interest Rate		Volatility		Life
November 23, 2021	$	15.02	2.00	%	1.22	%	45	%	5	years

The stock-based employee compensation expense for stock options for the three months ended March 31, 2021 and 2022 was $301 and $245, respectively, and for the six months ended March 31, 2021 and 2022 was $581 and $537, respectively. The remaining unrecognized compensation expense at March 31, 2022 was $1,117, to be recognized over a weighted average vesting period of 1.00 year.

The following table summarizes the activity under the 2016 and 2020 Incentive Compensation Plans with respect to stock options for the six months ended March 31, 2022 and provides information regarding outstanding stock options:

						Weighted
		Aggregate		Weighted		Average
		Intrinsic		Average		Remaining
	Number of	Value		Exercise		Contractual
	Shares	(000s)		Prices		Life
Outstanding at September 30, 2021	702,576			$	34.68
Granted	42,080			$	44.07
Exercised	(6,533)				34.27
Canceled	(22,478)			$	42.32
Outstanding at March 31, 2022	715,645	$	6,035	$	35.00	6.58	yrs.
Vested or expected to vest	650,351	$	5,482	$	34.99	4.31	yrs.
Exercisable at March 31, 2022	503,300	$	3,554	$	36.60	5.82	yrs.