STOCK-BASED COMPENSATION

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

STOCK-BASED COMPENSATION

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 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, continued to be exercisable in accordance with their terms and the last of the options were exercised during 2021.

The 2015 Ownership Incentive Plan (the "2015 Plan") was approved 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 LCNB's Board of Directors ("Compensation Committee"). 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 is subject to earlier termination by the Compensation Committee.

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

LCNB has not granted stock options since 2012.

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


	2021		2020
		Options	Weighted Average Exercise Price		Options	Weighted Average Exercise Price
Outstanding at January 1,		311	$	12.60	9,904	$	11.96

Exercised		(311)	12.60		(9,593)	11.94
Expired		—	—		—	—
Outstanding at December 31,		—	$	—	311	$	12.60
Exercisable at December 31,		—	$	—	311	$	12.60

The following table provides information related to stock options exercised during the years indicated (in thousands):


	2021		2020
Intrinsic value of options exercised	$	1	46
Cash received from options exercised	4		114
Tax benefit realized from options exercised	—		5

Compensation costs related to option awards were recognized in full during the first quarter 2017.

Restricted stock awards granted under the 2015 Plan were as follows:


	2022			2021			2020
	Shares	Weighted Average Grant Date Fair Value		Shares	Weighted Average Grant Date Fair Value		Shares	Weighted Average Grant Date Fair Value
Outstanding at January 1,	44,512	$	17.08	28,596	$	17.42	17,752	$	18.03
Granted	32,554	19.25		26,321	16.85		19,211	16.87
Vested	(18,752)	18.01		(9,649)	17.49		(4,817)	17.83
Forfeited	—	—		(756)	16.86		(3,550)	16.9
Outstanding at December 31,	58,314	$	17.99	44,512	$	17.08	28,596	$	17.42

Total expense related to restricted stock awards included in salaries and wages in the Consolidated Statements of Income for the years ended December 31, 2022, 2021, and 2020 was $531,000, $249,000, and $137,000 respectively. The related tax benefit for the years ended December 31, 2022, 2021, and 2020 was $111,000, $52,000, and $29,000, respectively. Unrecognized compensation expense for restricted stock awards was $701,000 at December 31, 2022 and is expected to be recognized over a period of 4.2 years.