LCNB (LCNB) 8-K Results of Operations and Financial Condition

LCNB Corp. and Subsidiaries

Financial Highlights

(Dollars in thousands, except per share amounts)

Condensed Income Statement		Three Months Ended September 30,		Nine Months Ended September 30,
		2009	2008	2009	2008
Interest income	$	8,768	8,608	26,034	25,687
Interest expense		2,455	3,290	7,709	10,205
Net interest income		6,313	5,318	18,325	15,482
Provision for loan losses		664	188	970	322
Net interest income after provision		5,649	5,130	17,355	15,160
Non-interest income		2,176	2,203	6,517	6,430
Non-interest expense		5,194	4,928	16,878	14,975
Income before income taxes		2,631	2,405	6,994	6,615
Provision for income taxes		588	611	1,548	1,679
Net income		2,043	1,794	5,446	4,936
Preferred stock dividends and discount accretion		206	-	514	-
Net income available to common   shareholders	$	1,837	1,794	4,932	4,936
Dividends per common share	$	0.16	0.16	0.48	0.48
Basic earnings per common share	$	0.27	0.27	0.74	0.74
Diluted earnings per common share	$	0.27	0.27	0.74	0.74
Average basic shares outstanding		6,687,232	6,687,232	6,687,232	6,687,232
Average diluted shares outstanding		6,707,746	6,687,232	6,693,032	6,687,232
Selected Financial Ratios
Return on average assets		1.09%	1.09%	1.02%	1.05%
Return on average equity		10.46%	12.27%	9.54%	11.38%
Dividend payout ratio		59.26%	59.26%	64.86%	64.86%
Net interest margin (tax equivalent)		3.94%	3.68%	3.93%	3.74%

Selected Balance Sheet Items		September 30, 2009	December 31, 2008
Investment securities	$	216,801	139,272
Loans		459,998	453,811
Less allowance for loan losses		2,799	2,468
Net loans		457,199	451,343
Total assets		749,806	649,731
Total deposits		639,081	577,622
Short-term borrowings		317	2,206
Long-term debt		25,309	5,000
Total shareholders’ equity		79,165	58,116
Shares outstanding at period end		6,687,232	6,687,232
Book value per share	$	9.83	8.69
Equity to assets ratio		10.56%	8.94%
Assets Under Management
LCNB Corp. total assets	$	749,806	649,731
Trust and investments (fair value)		186,250	174,775
Mortgage loans serviced		57,111	37,783
Business cash management		19,338	39,979
Brokerage accounts (fair value)		43,912	53,633
Total assets managed	$	1,056,417	955,901