Condensed Income Statement

Three Months Ended

March 31,

2012

2011

Interest income

$

7,731

8,130

Interest expense

1,322

1,772

  Net interest income

6,409

6,358

Provision for loan losses

215

664

  Net interest income after provision

6,194

5,694

Non-interest income

2,336

1,915

Non-interest expense

5,448

5,785

  Income before income taxes

3,082

1,824

Provision for income taxes

805

346

  Net income from continuing operations

2,277

1,478

Income from discontinued operations, net of taxes

-

824

  Net income

$

2,277

2,302

Dividends per common share

$

0.16

0.16

Basic earnings per common share:

  Continuing operations

$

0.34

0.22

  Discontinued operations

-

0.12

Diluted earnings per common share:

  Continuing operations

$

0.34

0.22

  Discontinued operations

-

0.12

Average shares outstanding:

  Basic

6,706,295

6,689,743

  Diluted

6,773,451

6,741,767

Selected Financial Ratios

Return on average assets

1.15%

1.22%

Return on average equity

11.56%

13.16%

Dividend payout ratio

47.06%

47.06%

Net interest margin (tax equivalent)

3.69%

3.87%

Selected Balance Sheet Items

March 31,

2012

December 31,

2011

Investment securities

$

265,829

 267,771

Loans

456,981

461,262

  Less allowance for loan losses

2,890

2,931

  Net loans

454,091

458,331

Total assets

791,905

791,570

Total deposits

675,566

663,562

Short-term borrowings

10,590

21,596

Long-term debt

20,731

21,373

Total shareholders’ equity

78,513

77,960

Shares outstanding at period end

6,711,691

6,704,723

Book value per share

$

11.70

11.63

Equity to assets ratio

9.91%

9.85%

Assets Under Management

LCNB Corp. total assets

$

791,905

791,570

Trust and investments (fair value)

235,205

221,950

Loans serviced

68,250

67,410

Business cash management

8,682

8,583

Brokerage accounts (fair value)

87,250

78,863

Total assets managed

$

1,191,292

1,168,376