Stock-Based Compensation

9 Months Ended

Jun. 30, 2023

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 nine months ended June 30, 2023:

		Weighted
		Average Fair
	Number of	Value At
	Shares	Grant Date
Unvested at September 30, 2022	96,536	$	33.23
Granted	30,159	$	49.23
Forfeited / Canceled	(510)	$	30.11
Vested	(35,692)	$	37.06
Unvested at June 30, 2023	90,493	$	37.07
Expected to vest	90,493	$	37.07

Compensation expense related to restricted stock for the three months ended June 30, 2022 and 2023 was $375 and $298, respectively and for the nine months ended June 30, 2022 and 2023 was $1,120 and $945, respectively. The remaining unrecognized compensation expense related to restricted stock at June 30, 2023 was $1,764, to be recognized over a weighted average period of 1.42 years.  During the first nine months of fiscal 2023, the Company repurchased 17,531 shares of stock from employees at an average purchase price of $52.74 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 nine months ended June 30, 2023.  

		Weighted
		Average Fair
	Number of	Value At
	Shares	Grant Date
Unvested and deferred at September 30, 2022	3,801	$	44.07
Granted	8,974	$	49.19
Vested and deferred	(3,801)	$	44.07
Unvested and deferred at June 30, 2023	8,974	$	49.19
Vested and deferred at June 30, 2023	21,351	$	31.32

Compensation expense related to deferred restricted stock for the three months ended June 30, 2022 and 2023 was $42 and $110, respectively and for the nine months ended June 30, 2022 and 2023 was $126 and $269, respectively. The remaining unrecognized compensation expense related to deferred restricted stock at June 30, 2023 was $202, to be recognized over a weighted average period of  0.46 years.  

Performance Shares

The following table summarizes the activity under the 2016 and 2020 Incentive Compensation Plans with respect to performance shares for the nine months ended June 30, 2023.  

		Weighted
		Average Fair
	Number of	Value At
	Shares	Grant Date
Unvested at September 30, 2022	76,420	$	41.37
Granted	19,555	$	69.39
Vested	(25,226)	$	42.83
Forfeited / Canceled	—	$	0.00
Unvested at June 30, 2023	70,749	$	48.60

During the first nine months of fiscal 2023, 25,226 performance share awards vested which resulted in the issuance of 12,429 shares of stock to certain employees.  The Company repurchased 5,474 shares of stock from employees at an average purchase price of $52.41 to satisfy required withholding taxes upon release of performance share awards.  Compensation expense related to the performance shares for the three months ended June 30, 2022 and 2023 was $284 and $309, respectively, and for the nine months ended June 30, 2022 and 2023 was $737 and $915, respectively.  The remaining unrecognized compensation expense related to performance shares at June 30, 2023 was $1,684 to be recognized over a weighted average period of 1.36 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 2023:

	Fair		Dividend		Risk-free		Expected		Expected
Grant Date	Value		Yield		Interest Rate		Volatility		Life
June 16, 2023	$	20.82	1.70	%	3.91	%	48	%	5	years
February 7, 2023	$	22.70	1.65	%	3.81	%	51	%	5	years
November 22, 2022	$	20.52	1.80	%	3.97	%	51	%	5	years

The stock-based employee compensation expense for stock options for the three months ended June 30, 2022 and 2023 was $231 and $149, respectively, and for the nine months ended June 30, 2022 and 2023 was $768 and $500, respectively.  The remaining unrecognized compensation expense at June 30, 2023 was $836, to be recognized over a weighted average vesting period of 1.33 years.    

The following table summarizes the activity under the 2007, 2016 and 2020 Incentive Compensation Plans with respect to stock options for the nine months ended June 30, 2023 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, 2022	697,220			$	34.75
Granted	32,985			$	49.08
Exercised	(218,576)			$	37.90
Surrendered	(13,081)			$	47.96
Outstanding at June 30, 2023	498,548	$	8,407	$	33.96	6.51	yrs.
Vested or expected to vest	479,274	$	8,032	$	34.07	6.45	yrs.
Exercisable at June 30, 2023	399,672	$	7,031	$	33.23	6.05	yrs.