Condensed Income Statement

Three Months Ended

March 31,

2014

2013

Interest income

$

9,278

8,076

Interest expense

915

1,098

  Net interest income

8,363

6,978

Provision for loan losses

81

149

  Net interest income after provision

8,282

6,829

Non-interest income

2,077

2,507

Non-interest expense

8,672

7,091

  Income before income taxes

1,687

2,245

Provision for income taxes

364

517

  Net income

$

1,323

1,728

Dividends per common share

$

0.16

0.16

Earnings per common share:

  Basic

$

0.14

0.23

  Diluted

0.14

0.23

Average shares outstanding:

  Basic

9,288,400

7,513,101

  Diluted

9,413,049

7,610,626

Selected Financial Ratios

Return on average assets

0.50%

0.76%

Return on average equity

4.47%

7.51%

Dividend payout ratio

114.29%

69.57%

Net interest margin (tax equivalent)

3.66%

3.53%

Selected Balance Sheet Items

March 31,

2014

December 31,

2013

Investment securities

$

331,771

 279,021

Loans

685,196

574,354

  Less allowance for loan losses

3,370

3,588

  Net loans

681,826

570,766

Total assets

1,133,508

932,338

Total deposits

984,514

785,761

Short-term borrowings

11,215

8,655

Long-term debt

11,580

12,102

Total shareholders’ equity

119,761

118,873

Shares outstanding at period end

9,292,226

9,287,536

Book value per share

$

12.89

12.80

Tangible book value per share

9.44

11.02

Equity to assets ratio

10.57%

12.75%

Assets Under Management

LCNB Corp. total assets

$

1,133,508

932,338

Trust and investments (fair value)

262,666

257,088

Loans serviced

133,504

90,343

Business cash management

5,871

5,647

Brokerage accounts (fair value)

120,768

115,745

Total assets managed

$

1,656,317

1,401,161