Share Based Compensation Plan

12 Months Ended

Dec. 31, 2015

Share Based Compensation Plan [Abstract]

Note 15: 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 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 2015 or 2014.

The compensation cost charged against income with respect to option awards under the 2008 Plan was $0.00 million and $0.04 million for 2015 and 2014, respectively. The total income tax benefit recognized in the income statement for share-based compensation arrangements was $0.00 million and $0.01 million for 2015 and 2014, respectively.

A summary of incentive option activity under the Company’s plans as of December 31 and changes during the years then ended, is presented below:

	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Term		Aggregate Intrinsic Value

Outstanding, beginning of year		195,220		$	8.60
Granted		-			-
Exercised		(9,500	)		6.98
Forfeited		(25,646	)		6.98
Expired		(20,000	)		12.33
Outstanding, end of year		140,074			8.12		3.36	$	436,089

Exercisable, end of year		140,074			8.12		3.36	$	436,089

As of December 31, 2015, there was $0.00 million of total unrecognized compensation cost related to incentive option share-based compensation arrangements granted under the 2008 Plan.

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 are intended to assist the Company in retention of key executives. During 2015 and 2014, 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 $0.08 million and $0.05 million for 2015 and 2014, respectively. The total income tax benefit recognized in the income statement for share-based compensation arrangements was $0.03 million and $0.02 million for 2015 and 2014, respectively.

A summary of restricted stock activity under the Company’s plan as of December 31 and changes during the years ended, is presented below:

	Shares			Weighted- Average Value per Share

Nonvested, beginning of year		22,652		$	8.15

Granted		12,192			9.55
Vested		(6,441	)		8.07
Forfeited		(1,075	)		8.11

Nonvested, end of year		27,328		$	8.77

As of December 31, 2015, there was $0.17 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 2.50 years.