Stock Based Compensation

3 Months Ended

Mar. 31, 2013

Stock Based Compensation [Abstract]

Stock Based Compensation

Note 13 - Stock Based Compensation

LCNB established an Ownership Incentive Plan (the "Plan") during 2002 that allows for stock-based awards to eligible employees, as determined by the Board of Directors.  The awards may be in the form of stock options, share awards, and/or appreciation rights.  The Plan provides for the issuance of up to 200,000 shares.

Options granted to date vest ratably over a five year period and expire ten years after the date of grant. Stock options outstanding at March 31, 2013 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		25,360	$	9.00		5.8		20,285	$	9.00		5.8
$	11.00 - $12.99		65,708		12.04		7.3		33,716		12.04		6.7
$	17.00 - $18.99		19,518		18.15		2.5		19,518		18.15		2.5
			110,586		12.42		6.1		73,519		12.82		5.3

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

	2013				2012
	Options		Weighted Average Exercise Price		Options		Weighted Average Exercise Price
Outstanding, January 1		110,586	$	12.42		124,123	$	12.54
Granted		-		-		14,491		12.60
Exercised		-		-		-		-
Outstanding, March 31		110,586		12.42		138,614		12.55
Exercisable, March 31		73,519		12.82		83,337		13.25

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 March 31, 2013 that were "in the money" (market price greater than exercise price) was $499,000.  The aggregate intrinsic value at that date for only the options that were exercisable was $312,000.  The aggregate intrinsic value for options outstanding at March 31, 2012 that were in the money was $216,000 and the aggregate intrinsic value at that date for only the options that were exercisable was $119,000.  The intrinsic value changes based on changes in the market value of the Company's stock.

Total expense related to options included in salaries and wages in the consolidated statements of income for each of the three months ended March 31, 2013 and 2012 was $9,000.