Stock Based Compensation

3 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement [Abstract]

LCNB established an Ownership Incentive Plan (the "2002 Plan") during 2002 that allowed for stock-based awards to eligible employees, as determined by the Board of Directors. The awards were made in the form of stock options, share awards, and/or appreciation rights. The 2002 Plan provided for the issuance of up to 200,000 shares of common stock. Options granted under the 2002 Plan vested ratably over a five-year period and expired ten years after the date of grant. The 2002 Plan expired on April 16, 2012. Any outstanding unexercised options, however, continued to be exercisable in accordance with their terms.

The 2015 Ownership Incentive Plan (the "2015 Plan") was ratified by LCNB's shareholders at the annual meeting on April 28, 2015 and allows for stock-based awards to eligible employees, as determined by the Compensation Committee of the Board of Directors. Awards may be made in the form of stock options, appreciation rights, restricted shares, and/or restricted share units. The 2015 Plan provides for the issuance of up to 450,000 shares of common stock. The 2015 Plan will terminate on April 28, 2025 and is subject to earlier termination by the Compensation Committee.

Stock-based awards may be in the form of treasury shares or newly issued shares.

LCNB has not granted stock option awards since 2012.

The following table summarizes stock option activity for the periods indicated:


	Three Months Ended March 31,
	2022					2021
	Options	Weighted Average Exercise Price		Aggregate Intrinsic Value (in thousands) (1)		Options	Weighted Average Exercise Price		Aggregate Intrinsic Value (in thousands) (1)
Outstanding, January 1,	—	$	—			311	$	12.60
Granted	—	—				—	—
Exercised	—	—				(311)	12.60
Expired	—	—				—	—
Outstanding, March 31,	—	—		$	—	—	—		$	—
Exercisable, March 31,	—	—		$	—	—	—		$	—
(1) Aggregate Intrinsic Value is defined as the amount by which the current market value of the underlying stock exceeds the exercise price of the option.

The following table provides information related to stock options exercised during the periods indicated (in thousands):


	Three Months Ended March 31,
	2022		2021
Intrinsic value of options exercised	$	—	1
Cash received from options exercised	—		4
Tax benefit realized from options exercised	—		—

Restricted stock awards granted under the 2015 Plan were as follows:


	2022			2021
	Shares	Weighted Average Grant Date Fair Value		Shares	Weighted Average Grant Date Fair Value
Outstanding, January 1,	44,512	$	17.08	28,596	$	17.42
Granted	32,554	19.25		26,321	16.85
Vested	(17,229)	17.98		(8,817)	17.55
Forfeited	—	—		(122)	16.87
Outstanding, March 31,	59,837	$	18.00	45,978	$	17.07

The following table presents expense recorded in salaries and employee benefits for restricted stock awards and the related tax information for the three months ended March 31, 2022 and 2021 (in thousands):


	Three Months Ended March 31,
		2022		2021
Restricted stock expense		$	197	93
Tax effect		41		20

Unrecognized compensation expense for restricted stock awards was $1,034,000 at March 31, 2022 and is expected to be recognized over a period of 4.9 years.