Stock Based Compensation

6 Months Ended

Jun. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [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. The 2002 Plan expired on April 16, 2012. Any outstanding unexercised options, however, continue 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. The 2015 Plan will terminate on April 28, 2025 and is subject to earlier termination by the Compensation Committee. No awards have been granted under the 2015 Plan.

Options granted to date under the 2002 Plan vest ratably over a five-year period and expire ten years after the date of grant.

Stock options outstanding at June 30, 2015 are as follows:



	Outstanding Stock Options				Exercisable Stock Options
Exercise Price Range	Number	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Number	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)
$9.00 - $10.99	17,633	$	9.00	3.6	17,633	$	9.00	3.6
$11.00 - $12.99	53,266	12.04		5.1	44,477	12.00		4.9
$17.00 - $18.99	12,962	18.41		1.1	12,962	18.41		1.1
	83,861	12.39		4.2	75,072	12.40		3.9

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



	2015				2014
	Options		Weighted Average Exercise Price		Options		Weighted Average Exercise Price
Outstanding, January 1,	99,810		$	12.16	104,966		$	12.43
Granted	—		—		—		—
Exercised	(13,449	)	11.31		—		—
Expired	(2,500	)	9.00		(5,156	)	17.66
Outstanding, June 30,	83,861		12.39		99,810		12.16
Exercisable, June 30,	75,072		12.40		78,705		12.17

The aggregate intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) for options outstanding at June 30, 2015 that were "in the money" (market price greater than exercise price) was $349,000. The aggregate intrinsic value at that date for only the options that were exercisable was $314,000. The aggregate intrinsic value for options outstanding at June 30, 2014 that were in the money was $429,000 and the aggregate intrinsic value at that date for only the options that were exercisable was $343,000. The intrinsic value changes based upon fluctuations in the market value of LCNB's common stock.

Total expenses related to options included in salaries and employee benefits in the consolidated statements of income for the three and six months ended June 30, 2015 was $3,000 and $10,000, respectively. Total expenses related to options included in salaries and employee benefits for the three and six months ended June 30, 2014 was $6,000 and $13,000, respectively.