Share Based Compensation

3 Months Ended

Mar. 31, 2017

NOTE 8 - SHARE BASED COMPENSATION

In April 2008, the shareholders approved a share-based incentive compensation plan, the SB Financial Group, Inc. 2008 Stock Incentive Plan (the “2008 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. Option awards are granted with an exercise price equal to the market price of the Company’s stock at the date of grant and those option awards vest based on 5 years of continuous service and have 10-year contractual terms.

A summary of incentive option activity under the Company’s plans as of March 31, 2017 and changes during the quarter then ended, is presented below:

	Shares			Weighted-Average Exercise Price		Weighted-Average Remaining Term

Outstanding, December 31, 2016		145,894		$	7.85
Granted		-			-
Exercised		(36,517	)		10.29
Forfeited		-			-
Expired		(10,127	)		11.50
Outstanding, March 31, 2017		99,250			6.97		2.90

Exercisable, March 31, 2017		99,250			6.97		2.90

A summary of restricted stock activity under the Company’s plans as of March 31, 2017 and changes during the quarter then ended, is presented below:

	Shares			Weighted-Average Value per Share

Nonvested, December 31, 2016		35,498		$	9.44
Granted		24,352			18.84
Vested		(13,429	)		9.04
Forfeited		-			-
Nonvested, March 31, 2017		46,421		$	14.57

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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