.

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________



FORM 8-K


CURRENT REPORT



Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934



Date of Report (Date of earliest event reported):  April 18, 2008

LCNB CORP.

(Exact name of Registrant as specified in its Charter)



 

Ohio

   

0-26121

  

31-1626393

(State or other jurisdiction

 

(Commission File No.)  

(IRS Employer

of incorporation)

  

Identification Number)



2 North Broadway, Lebanon, Ohio

45036

 

(Address of principal executive offices)

(Zip Code)

 


Registrant’s telephone number, including area code:   (513) 932-1414

N/A

(Former name or former address, if changed since last report)









Item 2.02   Results of Operations and Financial Condition.

On April 18, 2008, LCNB Corp. issued an earnings release announcing its financial results for the first quarter ended March 31, 2008.  A copy of the earnings release (Exhibit 99.1) and unaudited financial highlights (Exhibit 99.2) are attached and are furnished under this Item 2.02.

 Item 8.01. Other Events.

On April 18, 2008, LCNB Corp. issued an earnings release announcing its financial results for the second quarter ended March 31, 2008.  A copy of the earnings release (Exhibit 99.1) and unaudited financial highlights (Exhibit 99.2) are attached and are furnished under this Item 8.01.

Item 9.01   Financial Statements and Exhibits.

(c)

Exhibits


Exhibit No.

Description

99.1

Press release dated April 18, 2008

99.2

Unaudited Financial Highlights




SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.


       

LCNB CORP.

          
           

Date: April 18, 2008

  

By:  /s/ Robert C. Haines II

        

Robert C. Haines II

Chief Financial Officer

        





Exhibit 99.1

Press Release

April 18, 2008


LCNB CORP. REPORTS FINANCIAL RESULTS FOR

THE THREE MONTHS ENDED MARCH 31, 2008


LCNB Corp. today announced net income of $1,444,000 ($0.22 basic and diluted earnings per share) for the three months ended March 31, 2008.  This compares to $1,398,000 ($0.22 basic and diluted earnings per share) for the three months ended March 31, 2007.  Financial results were influenced by the acquisition of Sycamore National Bank at of the close of business on December 20, 2007 in a stock and cash transaction.  In accordance with the purchase method of accounting, Sycamore’s results of operations were included in LCNB’s consolidated statements of income from the date of acquisition.  As a result of the merger, LCNB recorded additional net loans of $42.8 million and additional deposits of $44.4 million at the time of the acquisition.        


Net interest income for the 2008 period was $454,000 greater than in 2007 primarily due to the additional loans and deposits acquired from Sycamore.  Interest income for the first three months of 2008 was $763,000 greater than in the comparable period of  2007 primarily due to a $53.1 million increase in average interest-earning assets, slightly offset by a 14 basis point (a basis point equals .01%) decrease in the average rate received on such assets.  Interest expense for the first three months of 2008 increased $309,000 as compared to the same period in 2007 primarily due to a $51.1 million increase in average interest-bearing liabilities, slightly offset by a 12 basis point decrease in the average rate paid for these liabilities.


Non-interest income for the first three months of 2008 was $117,000 greater than for the comparable period in 2007 primarily due to increases in trust income, check card income, income from bank owned life insurance, and insurance agency commissions.  Non-interest expense for the 2008 period was $456,000 greater than for 2007.  The increase was largely due to increases in salaries and benefits resulting from routine salary and wage increases and an increase in the number of employees.  Additionally, occupancy, telephone, and office supplies expenses increased primarily as a result of an increase in branch locations.  


LCNB Corp. is a financial holding company headquartered in Lebanon, Ohio.  Affiliates of LCNB Corp. are LCNB National Bank, with 24 offices located in Warren, Butler, Montgomery, Clinton, Clermont, and Hamilton Counties, Ohio, and Dakin Insurance Agency, Inc.   Additional information about LCNB Corp. and information about products and services offered by LCNB National Bank and Dakin Insurance Agency can be found on the internet at www.lcnb.com and www.dakin-ins.com.

  

Certain matters disclosed herein may be deemed to be forward-looking statements that involve risks and uncertainties, including regulatory policy changes, interest rate fluctuations, loan demand, loan delinquencies and losses, and other risks.  Actual strategies and results in future time periods may differ materially from those currently expected.  Such forward-looking statements represent management’s judgment as of the current date.  LCNB Corp. disclaims any intent or obligation to update such forward-looking statements.   LCNB intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.




Exhibit 99.2

April 18, 2008

LCNB Corp. and Subsidiaries

Financial Highlights

 (Dollars in thousands, except per share amounts)


Share and per share data have been restated to reflect a 100% stock dividend paid on May 10, 2007.



Condensed Income Statement

 

Three Months Ended March 31,

 
  

2008

 

2007

 

Interest income

$

8,615

 

7,852

 

Interest expense

 

3,631

 

3,322

 

  Net interest income

 

4,984

 

4,530

 

Provision for loan losses

 

83

 

 60

 

  Net interest income after provision

 

5,901

 

4,470

 

Non-interest income

 

2,063

 

1,946

 

Non-interest expense

 

5,045

 

4,589

 

  Income before income taxes

 

1,919

 

1,827

 

Provision for income taxes

 

475

 

429

 

  Net income

$

1,444

 

1,398

 
      

Dividends per common share

$

0.16

 

0.155

 

Basic earnings per common share

$

0.22

 

0.22

 

Diluted earnings per common share

$

0.22

 

0.22

 

Average basic shares outstanding

 

6,687,232

 

6,375,893

 

Average diluted shares outstanding

 

6,687,232

 

6,377,556

 
      

Selected Financial Ratios

     

Return on average assets

 

0.96%

 

1.04%

 

Return on average equity

 

10.04%

 

11.02%

 

Dividend payout ratio

 

72.73%

 

70.45%

 

Net interest margin (tax equivalent)

 

3.78%

 

3.87%

 



Selected Balance Sheet Items

 

March 31,

2008

 

December 31,

2007

Investment securities

$

89,695

 

    90,154

     

Loans

 

446,824

 

446,887

  Less allowance for loan losses

 

2,468

 

2,468

  Net loans

 

444,356

 

444,419

     

Total assets

 

604,936

 

604,058

Total deposits

 

537,174

 

535,929

Short-term borrowings

 

564

 

 1,459

Long-term debt

 

5,000

 

5,000

Total shareholders’ equity

 

57,534

 

56,528

     

Shares outstanding at period end

 

6,687,232

 

6,687,232

     

Book value per share

$

8.60

 

8.45

Equity to assets ratio

 

9.51%

 

9.36%

     

Assets Under Management

    

LCNB Corp. total assets

$

604,936

 

604,058

Trust and investments (fair value)

 

193,960

 

199,053

Loans serviced

 

41,791

 

40,260

Business cash management

 

35,437

 

34,532

Brokerage accounts (fair value)

 

56,889

 

58,929

Total assets managed

$

933,013

 

936,832