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Share Based Compensation Plan
 12 Months Ended
Dec. 31, 2014
Share Based Compensation Plan [Abstract]  
Share Based Compensation Plan

Note 19: Share Based Compensation Plan

 

In April 2008, the shareholders approved a new share-based incentive compensation plan, the SB Financial Group, Inc. 2008 Stock Incentive Plan (the "2008 Plan"), which replaced the Company’s 1997 Stock Option Plan.

 

The 2008 Plan permits the grant or award of incentive stock options, nonqualified stock options, stock appreciation rights ("SARs"), and restricted stock for up to 250,000 Common Shares of the Company.

 

The 2008 Plan is intended to advance the interests of the Company and its shareholders by offering employees, directors and advisory board members of the Company and its subsidiaries an opportunity to acquire or increase their ownership interest in the Company through grants of equity-based awards. The 2008 Plan permits equity-based Awards to be used to attract, motivate, reward and retain highly competent individuals upon whose judgment, initiative, leadership and efforts are key to the success of the Company by encouraging those individuals to become shareholders of the Company.

 

Option awards are generally granted with an exercise price equal to the market price of the Company’s stock at the date of grant, and those option awards generally vest based on 5 years of continuous service and have 10-year contractual terms.

 

The compensation cost charged against income for both the 1997 and 2008 Plans was $0.04 million and $0.05 million for 2014 and 2013, respectively. The total income tax benefit recognized in the income statement for share-based compensation arrangements was $0.01 million and $0.02 million for 2014 and 2013, respectively.

 

The fair value of each option award was estimated on the date of grant using the Black-Scholes valuation model. No options were granted in either 2014 or 2013.

 

On February 5, 2013, the Company adopted a Long Term Incentive (LTI) Plan. The Plan awards restricted stock in the Company to certain key executives under the 2008 Plan. These restricted stock awards vest over a four-year period and will assist the Company in retention of key executives. During 2014 and 2013, the Company met certain performance targets and restricted stock awards were approved by the Board. The compensation cost charged against income for the Long Term Incentive (LTI) Plan was $0.05 million and $0.02 million for 2014 and 2013, respectively. The total income tax benefit recognized in the income statement for share-based compensation arrangements was $0.02 million and $0.01 million for 2014 and 2013, respectively.

 

A summary of incentive option activity under the Company’s plans as of December 31, 2014 is presented below:

 

   2014 
   Shares  Weighted-Average Exercise Price  Weighted-Average Remaining Contractual Term  Aggregate Intrinsic Value 
              
 Outstanding, beginning of year  226,720  $9.24         
 Granted  -   -         
 Exercised  2,400   6.98         
 Forfeited  600   6.98         
 Expired  28,500   13.85         
 Outstanding, end of year  195,220   8.60   3.96  $312,078 
                  
 Exercisable, end of year  171,470   8.83   3.80  $254,283 

 

As of December 31, 2014, there was $0.00 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the 2008 Plan. That cost is expected to be recognized over a weighted-average period of 0.13 years.

 

A summary of restricted stock activity under the Company’s plan as of December 31, 2014 is presented below:

 

 2014 Shares  Weighted-Average Grant-Date Fair Value per share 
        
 Nonvested, beginning of year  12,400  $7.50 
          
 Granted  13,354   8.60 
 Vested  (3,102)  7.50
 Forfeited  -   - 
          
 Nonvested, end of year  22,652  $8.15 

 

As of December 31, 2014, there was $0.14 million of total unrecognized compensation cost related to nonvested share-based compensation arrangements related to the restricted stock awards under the 2008 Plan which were granted in accordance with the Long Term Incentive (LTI) plan. That cost is expected to be recognized over a weighted-average period of 2.84 years.