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Note 14 - Stock Based Compensation
 9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Share-Based Payment Arrangement [Text Block]

NOTE 14 – STOCK BASED COMPENSATION

 

The 2015 Ownership Incentive Plan (the "2015 Plan") was ratified by LCNB Corp.'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 could be subject to earlier termination by the Board Compensation Committee.

 

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

 

Restricted stock awards granted under the 2015 Plan during the three and nine months ended September 30, 2024 and 2023 were as follows:

 

  

2024

  

2023

 
      

Weighted

      

Weighted

 
      

Average

      

Average

 
      

Grant Date

      

Grant Date

 
  

Shares

  

Fair Value

  

Shares

  

Fair Value

 

Nonvested at January 1,

  79,017  $17.94   58,314  $17.99 

Granted

  41,703   13.87   44,150   17.84 

Vested

  (36,127)  16.39   (23,447)  17.89 

Forfeited

  —   —   —   — 

Nonvested at September 30,

  84,593  $16.59   79,017  $17.94 

 

At September 30, 2024, there were 84,593 restricted stock awards outstanding with an approximate stock value of $1,275,000 based on that day's closing stock price. At September 30, 2023, there were 79,017 restricted stock awards outstanding with an approximate stock value of $1,166,000 based on that day's closing stock price. The fair value of restricted stock awards was $578,000 on the grant date of March 4, 2024 and $788,000 on the grant date of January 23, 2023. Grants to officers of LCNB vest over a period of five years while grants to members of the board of directors vest immediately. The grant date fair value is recognized ratably into expense over the vesting period.

 

 

The following table presents expense recorded in salaries and employee benefits for restricted stock awards and the related tax information for the three and nine months ended September 30, 2024 and 2023 (in thousands):

 

  

Three Months Ended

  

Nine Months Ended

 
  

September 30,

  

September 30,

 
  

2024

  

2023

  

2024

  

2023

 

Restricted stock expense

 $94   82   501   480 

Tax effect

  20   18   105   101 

 

Unrecognized compensation expense for restricted stock awards was $988,000 at September 30, 2024 and is expected to be recognized over a period of 4.5 years.