Stock Based Compensation (Tables)

6 Months Ended

Jun. 30, 2012

Stock Based Compensation [Abstract]

Summary of stock options outstanding

Options granted to date vest ratably over a five year period and expire ten years after the date of grant. Stock options outstanding at June 30, 2012 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	29,110		$	9.00	5.8	18,964	$	9.00		5.3
$11.00 - $12.99	74,290			12.03	7.2	29,159		12.01		5.0
$13.00 - $14.99	8,912			13.09	0.5	8,912		13.09		0.5
$17.00 - $18.99	24,158			18.16	2.7	24,158		18.16		2.7
	136,470			12.54	5.6	81,193		13.25		3.9

Summary of stock option activity

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

	2012			2011
	Options	Weighted Average Exercise Price		Options	Weighted Average Exercise Price
Outstanding, January 1	124,123	$	12.54	99,040	$	12.71
Granted	14,491		12.60	25,083		11.85
Exercised	(2,144)		13.09	-		-
Outstanding, June 30	136,470		12.54	124,123		12.54
Exercisable, June 30	81,193		13.25	57,746		14.06

Estimated weighted-average fair value of options granted and assumption used in calculating value

The fair value of options granted is estimated at the date of grant using the Black-Scholes option-pricing model.  The following table shows the estimated weighted-average fair value of options granted and the assumptions used in calculating that value for the years indicated:

	2012	2011
Estimated weighted-average fair value   of options granted	$2.80	$2.09
Risk-free interest rate	0.84%	2.84%
Average dividend	$0.64	$0.64
Volatility factor of the expected market   price of LCNB's common stock	39.56%	27.37%
Average life in years	6.5	6.5