Stock-Based Compensation |
Note 11. Stock-Based Compensation Restricted Stock The following table summarizes the activity under the 2020 Incentive Compensation Plan with respect to restricted stock for the three months ended December 31, 2023: | | | | | | | | | | | Weighted | | | | | | Average Fair | | | | Number of | | Value At | | | | Shares | | Grant Date | | Unvested at September 30, 2023 | | 89,843 | | $ | 37.17 | | Granted | | 38,675 | | $ | 48.63 | | Forfeited / Canceled | | — | | $ | 0.00 | | Vested | | (38,408) | | $ | 24.25 | | Unvested at December 31, 2023 | | 90,110 | | $ | 47.59 | | Expected to vest | | 90,110 | | $ | 47.59 | |
Compensation expense related to restricted stock for the three months ended December 31, 2022 and 2023 was $306 and $356, respectively. The remaining unrecognized compensation expense related to restricted stock at December 31, 2023 was $2,976, to be recognized over a weighted average period of 1.65 years. During the first three months of fiscal 2024, the Company repurchased 32,675 shares of stock from employees at an average purchase price of $47.18 to satisfy required withholding taxes upon vesting of restricted stock-based compensation. Deferred Restricted Stock The following table summarizes the activity under the 2016 Incentive Compensation Plan and the 2020 Incentive Compensation Plan with respect to deferred restricted stock for the three months ended December 31, 2023. | | | | | | | | | | | Weighted | | | | | | Average Fair | | | | Number of | | Value At | | | | Shares | | Grant Date | | Unvested and deferred at September 30, 2023 | | 8,974 | | $ | 49.19 | | Granted | | 5,575 | | $ | 48.63 | | Vested and deferred | | (7,574) | | $ | 48.85 | | Unvested and deferred at December 31, 2023 | | 6,975 | | $ | 49.12 | | Vested and deferred at December 31, 2023 | | 28,925 | | $ | 35.91 | |
Compensation expense related to deferred restricted stock for the three months ended December 31, 2022 and 2023 was $59 and $102, respectively. The remaining unrecognized compensation expense related to deferred restricted stock at December 31, 2023 was $260, to be recognized over a weighted average period of 0.76 years. Performance Shares The following table summarizes the activity under the 2020 Incentive Compensation Plan with respect to performance shares for the three months ended December 31, 2023. | | | | | | | | | | | Weighted | | | | | | Average Fair | | | | Number of | | Value At | | | | Shares | | Grant Date | | Unvested at September 30, 2023 | | 70,749 | | $ | 48.60 | | Granted | | 24,375 | | $ | 60.40 | | Vested | | (31,804) | | $ | 28.23 | | Forfeited / Canceled | | — | | $ | 0.00 | | Unvested at December 31, 2023 | | 63,320 | | $ | 63.37 | |
During the first three months of fiscal 2024, 31,804 performance share awards vested, which resulted in the issuance of 39,756 shares of stock to certain employees. The Company repurchased 17,481 shares of stock from employees at an average purchase price of $45.16 to satisfy required withholding taxes upon release of these vested performance share awards. Compensation expense related to the performance shares for the three months ended December 31, 2022 and 2023 was $241 and $268, respectively. The remaining unrecognized compensation expense related to performance shares at December 31, 2023 was $2,580 to be recognized over a weighted average period of 1.82 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 the three months ended December 31, 2023: | | | | | | | | | | | | | | | | Fair | | Dividend | | Risk-free | | Expected | | Expected | | Grant Date | | Value | | Yield | | Interest Rate | | Volatility | | Life | | November 21, 2023 | | $ | 18.48 | | 1.81 | % | 4.44 | % | 43.63 | % | 5 | years | |
The stock-based employee compensation expense for stock options for the three months ended December 31, 2022 and 2023 was $164 and $152, respectively. The remaining unrecognized compensation expense at December 31, 2023 was $1,253, to be recognized over a weighted average vesting period of 2.04 years. The following table summarizes the activity under the 2007 Incentive Compensation Plan, the 2016 Incentive Compensation Plan and the 2020 Incentive Compensation Plan with respect to stock options for the three months ended December 31, 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, 2023 | | 498,548 | | | | | $ | 33.96 | | | | | Granted | | 42,725 | | | | | $ | 48.63 | | | | | Exercised | | — | | | | | $ | 0.00 | | | | | Forfeited/Surrendered | | — | | | | | $ | 0.00 | | | | | Outstanding at December 31, 2023 | | 541,273 | | $ | 11,869 | | $ | 35.12 | | 6.32 | yrs. | | Vested or expected to vest | | 517,726 | | $ | 11,339 | | $ | 35.15 | | 5.51 | yrs. | | Exercisable at December 31, 2023 | | 463,267 | | $ | 11,167 | | $ | 32.94 | | 5.81 | yrs. | |
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