Condensed Income Statement

Three Months Ended

March 31,

2013

2012

Interest income

$

8,076

7,731

Interest expense

1,098

1,322

  Net interest income

6,978

6,409

Provision for loan losses

149

215

  Net interest income after provision

6,829

6,194

Non-interest income

2,507

2,336

Non-interest expense

7,091

5,448

  Income before income taxes

2,245

3,082

Provision for income taxes

517

805

  Net income

$

1,728

2,277

Dividends per common share

$

0.16

0.16

Earnings per common share:

  Basic

$

0.23

0.34

  Diluted

0.23

0.34

Average shares outstanding:

  Basic

7,513,101

6,706,295

  Diluted

7,610,626

6,773,451

Selected Financial Ratios

Return on average assets

0.76%

1.15%

Return on average equity

7.51%

11.56%

Dividend payout ratio

69.57%

47.06%

Net interest margin (tax equivalent)

3.53%

3.69%

Selected Balance Sheet Items

March 31,

2013

December 31,

2012

Investment securities

$

304,350

 276,970

Loans

549,667

453,783

  Less allowance for loan losses

3,404

3,437

  Net loans

546,263

450,346

Total assets

946,404

788,637

Total deposits

820,870

671,471

Short-term borrowings

11,609

13,756

Long-term debt

13,128

13,705

Total shareholders’ equity

94,204

82,006

Shares outstanding at period end

7,625,760

6,731,900

Book value per share

$

12.35

12.18

Tangible book value per share

10.14

11.29

Equity to assets ratio

9.95%

10.40%

Assets Under Management

LCNB Corp. total assets

$

946,404

788,637

Trust and investments (fair value)

244,198

221,558

Loans serviced

87,710

71,568

Business cash management

6,473

6,673

Brokerage accounts (fair value)

102,428

96,424

Total assets managed

$

1,387,213

1,184,860