SECURITIES AND EXCHANGE COMMISSION

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):  October 17, 2007

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 October 17, 2007, LCNB Corp. issued an earnings release announcing its financial results for the third quarter ended September 30, 2007.  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 October 17, 2007, LCNB Corp. issued an earnings release announcing its financial results for the third quarter ended September 30, 2007.  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 October 17, 2007

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: October 17, 2007

  

By:  /s/ Steve P. Foster

        

Steve P. Foster

Chief Financial Officer

        




Exhibit 99.1

Press Release

October 17, 2007


LCNB CORP. REPORTS FINANCIAL RESULTS FOR

THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2007


LCNB Corp. today announced net income of $4,365,000 ($0.69 basic and diluted earnings per share) for the nine months ended September 30, 2007.  This compares to $4,724,000 ($0.73 basic and diluted earnings per share) for the nine month period in 2006.  Return on average assets for the 2007 period was 1.07%, compared to 1.16% for the first nine months of 2006.  Return on average equity for the nine months ended September 30, 2007 and 2006 was 11.28% and 12.09%, respectively.  Net interest income for the first nine months of 2007 was $200,000 less than the same period in 2006 primarily due to a decrease in the net interest margin, on a tax-equivalent basis, from 3.85% for the 2006 period to 3.78% for the 2007 period.  This decrease was partially offset by growth in the loan portfolio.  Non-interest expense for the nine months ended September 30, 2007 was $345,000 greater than the same period in 2006, largely due to increases in salaries and benefits and occupancy expenses resulting, in part, from additional costs required during 2007 by the Oakwood office, which opened in May, 2007.  The provision for loan losses was $58,000 greater during the first nine months of 2007, when compared to the same period in 2006.


Net income for the third quarter of 2007 was $1,370,000 ($0.22 basic and diluted earnings per share), compared to $1,506,000 ($0.23 basic and diluted earnings per share) for the third quarter, 2006.  Return on average assets for the three months ended September 30, 2007 and 2006 was 0.99% and 1.08%, respectively.  Return on average equity for the third quarter, 2007 and 2006 was 10.47%  and 11.47%, respectively.  Net interest income for the third quarter, 2007 was $132,000 less than the third quarter, 2006 and non-interest expense for the third quarter, 2007 was $118,000 greater than the same period in 2006 for substantially the same reasons discussed above.    


LCNB Corp. is a financial holding company headquartered in Lebanon, Ohio.  Affiliates of LCNB Corp. are LCNB National Bank (formerly Lebanon Citizens National Bank), with 22 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


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 September 30,

 

Nine Months Ended

September 30,

  

2007

 

2006

 

2007

 

2006

Interest income

$

7,920

 

7,823

 

23,703

 

22,618

Interest expense

 

3,532

 

3,303

 

10,226

 

8,941

  Net interest income

 

4,388

 

4,520

 

13,477

 

13,677

Provision for loan losses

 

 75

 

 66

 

158

 

 100

  Net interest income after provision

 

4,313

 

4,454

 

13,319

 

13,577

Non-interest income

 

2,117

 

2,073

 

6,220

 

6,172

Non-interest expense

 

4,628

 

4,510

 

13,777

 

13,432

  Income before income taxes

 

1,802

 

2,017

 

5,762

 

6,317

Provision for income taxes

 

432

 

511

 

  1,397

 

1,593

  Net income

$

1,370

 

1,506

 

4,365

 

4,724

         

Dividends per common share

$

0.155

 

0.15

 

0.465

 

0.45

Basic earnings per common share

$

0.22

 

0.23

 

0.69

 

0.73

Diluted earnings per common share

$

0.22

 

0.23

 

0.69

 

0.73

Average basic shares outstanding

 

6,345,486

 

6,472,132

 

6,360,654

 

6,506,383

Average diluted shares outstanding

 

6,345,615

 

6,474,569

 

6,361,415

 

6,508,862

         

Selected Financial Ratios

        

Return on average assets

 

0.99%

 

1.08%

 

1.07%

 

1.16%

Return on average equity

 

10.47%

 

11.47%

 

11.28%

 

12.09%

Dividend payout ratio

 

70.45%

 

65.22%

 

67.39%

 

61.64%

Net interest margin (tax equivalent)

 

3.64%

 

3.71%

 

3.78%

 

3.85%



Selected Balance Sheet Items

 

September 30,

2007

 

December 31,

2006

Investment securities

$

93,455

 

114,474

     

Loans

 

396,167

 

390,370

  Less allowance for loan losses

 

2,051

 

2,050

  Net loans

 

394,116

 

388,320

     

Total assets

 

561,862

 

548,215

Total deposits

 

498,372

 

478,615

Short-term borrowings

 

2,805

 

15,370

Long-term debt

 

5,000

 

-

Total shareholders’ equity

 

52,130

 

50,999

     

Shares outstanding at period end

 

6,345,486

 

6,379,636

     

Book value per share

$

8.22

 

7.99

Equity to assets ratio

 

9.28%

 

9.30%

     

Assets Under Management

    

LCNB Corp. total assets

$

561,862

 

548,215

Trust and investments (fair value)

 

200,635

 

201,566

Mortgage loans serviced

 

40,966

 

42,431

Business cash management

 

30,999

 

27,262

Brokerage accounts (fair value)

 

57,314

 

50,816

Total assets managed

$

891,776

 

870,290