Note 14 - Stock Based Compensation

3 Months Ended

Mar. 31, 2025

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

NOTE 14 – STOCK BASED COMPENSATION

The 2015 Ownership Incentive Plan (the "2015 Plan") was ratified by LCNB Corp.'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 thousand shares of common stock. The 2015 Plan terminated on April 28, 2025.

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

Restricted stock awards granted under the 2015 Plan during the three months ended March 31, 2025 and 2024 were as follows:

	2025					2024
				Weighted					Weighted
				Average					Average
				Grant Date					Grant Date
	Shares			Fair Value		Shares			Fair Value
Nonvested at January 1,		84,593		$	16.59		79,017		$	17.94
Granted		38,950			14.60		41,703			13.87
Vested		(37,998	)		16.12		(36,127	)		16.39
Forfeited		—			—		—			—
Nonvested at March 31,		85,545		$	15.89		84,593		$	16.59

At March 31, 2025, there were 85,545 restricted stock awards outstanding with an approximate stock value of $1.3 million based on that day's closing stock price. At March 31, 2024, there were 84,593 restricted stock awards outstanding with an approximate stock value of $1.3 million based on that day's closing stock price. The fair value of restricted stock awards was $569 thousand on the grant date of February 24, 2025 and $578 thousand on the grant date of March 4, 2024. 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 expense over the vesting period.

The following table presents expense recorded in salaries and employee benefits for restricted stock awards and the related tax information for the three months ended March 31, 2025 and 2024 (in thousands):

	Three Months Ended
	March 31,
	2025		2024
Restricted stock expense	$	284		315
Tax effect		60		66

Unrecognized compensation expense for restricted stock awards was $1.2 million at March 31, 2025 and is expected to be recognized over a period of 5.0 years.