Note 18 - Stock-Based Compensation

12 Months Ended

Dec. 31, 2024

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

NOTE 18 - STOCK-BASED COMPENSATION

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.

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

	2024					2023					2022
				Weighted					Weighted					Weighted
				Average					Average					Average
				Grant Date					Grant Date					Grant Date
	Shares			Fair Value		Shares			Fair Value		Shares			Fair Value
Nonvested at January 1,		79,017		$	17.94		58,314		$	17.99		44,512		$	17.08
Granted		41,703			13.87		44,150			17.84		32,554			19.25
Vested		(36,127	)		16.39		(23,447	)		17.89		(18,752	)		18.01
Forfeited		—					—			—		—			—
Nonvested at December 31,		84,593		$	16.59		79,017		$	17.94		58,314		$	17.99

At December 31, 2024, there were 84,593 restricted stock awards outstanding with an approximate stock value of $1,280,000 based on that day's closing stock price. At December 31, 2023, there were 79,017 restricted stock awards outstanding with an approximate stock value of $1,246,000 based on that day's closing stock price. The grant date fair value of restricted stock awards was $578,000 and $788,000 in 2024 and 2023, respectively. Grants to officers of LCNB vest over a period of five years while grants to members of the board of directors vest immediately. The grant date fair value is recognized ratably into income over the vesting period.

Total expense related to restricted stock awards included in salaries and wages in the Consolidated Statements of Income for the years ended December 31, 2024, 2023, and 2022 was $588,000, $563,000, and $531,000 respectively. The related tax benefit for the years ended December 31, 2024, 2023, and 2022 was $124,000, $118,000, and $111,000, respectively.

Unrecognized compensation expense for restricted stock awards was $900,000 at December 31, 2024 and is expected to be recognized over a period of 4.2 years.