8-K

UNITED STATES

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):  July 22, 2009

LCNB CORP.

(Exact name of Registrant as specified in its Charter)

Ohio	0-26121	31-1626393
(State or other jurisdiction of incorporation)	(Commission File No.)	(IRS Employer 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 July 22, 2009, LCNB Corp. issued an earnings release announcing its financial results for the second quarter ended June 30, 2009.  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 July 22, 2009, LCNB Corp. issued an earnings release announcing its financial results for the second quarter ended June 30, 2009.  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 July 22, 2009

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: July 22, 2009	By:  /s/ Robert C. Haines II
		Robert C. Haines II Chief Financial Officer

EX-99

Press Release

July 22, 2009

LCNB CORP. REPORTS FINANCIAL RESULTS FOR

THE THREE AND SIX MONTHS ENDED JUNE 30, 2009

LCNB Corp. today announced net income of $1,840,000 ($0.24 basic and diluted earnings per common share) and $3,403,000 ($0.46 basic and diluted earnings per common share) for the three and six months ended June 30, 2009, respectively.  This compares to $1,698,000 ($0.25 basic and diluted earnings per common share) and $3,142,000 ($0.47 basic and diluted earnings per common share) for the same three and six-month periods in 2008.  

While not immune from the effects of weakening economic conditions, LCNB’s earnings reflect continued strong asset quality resulting from responsible underwriting and lending practices.  Consequently, net charge-offs for the first half of 2009 and 2008 totaled $174,000 and $134,000, respectively.  Non-accrual loans and loans past due 90 days or more and still accruing interest totaled $4,108,000 or 0.90% of total loans at June 30, 2009, compared to $3,087,000 or 0.68% of total loans at December 31, 2008.  Real estate acquired through foreclosure and other repossessed assets totaled approximately $39,000 at June 30, 2009, compared to $89,000 at December 31, 2008.

Net interest income for the three and six months ended June 30, 2009 increased $953,000 and $1,848,000, respectively, over the comparative periods in 2008 primarily due to growth in interest-earning assets and a reduction in general market rates.  Non-interest income for the three and six-month periods in 2009 were $47,000 and $114,000 greater than the comparable periods in 2008 primarily due to increases in gains from the sale of residential mortgage loans, partially offset by decreases in trust income, service charges and fees on deposit accounts, and insurance agency income.  

The increases in net interest income and non-interest income were partially offset by increases of $765,000 and $1,637,000 in non-interest expense and increases of $157,000 and $172,000 in the provision for loan losses for the three and six months ended June 30, 2009, respectively, as compared to the same periods in 2008.  Non-interest expense for the second quarter 2009 includes a $325,000 expense for an industry-wide FDIC special assessment.  The six-month increase in non-interest expense was also due to a $722,000 pension related charge in the first quarter 2009.  The remainder of the expense increases for the three and six-month periods were largely due to standard industry-wide increases in FDIC deposit insurance premiums and increased salaries and benefits resulting from annual salary and wage increases and an increase in the number of employees.  Increases in non-interest expenses were partially offset by a decrease in amortization of intangible assets related to the purchase of three offices from another bank in 1997.  These intangible assets were fully amortized in 2008.  The increase in the provision for loan losses reflects the increase in non-accrual and delinquent loans.  

The pension plan related charge mentioned above is related to the redesign during the first quarter 2009 of LCNB’s retirement program.  The plans were redesigned to provide competitive benefits to employees and provide more predictable and lower retirement plan costs over the long term.  Because of the redesign, pension plan related balance sheet accounts were adjusted resulting in an approximate $3.0 million after-tax increase in other comprehensive income, which is a component of shareholders’ equity, and a $722,000 charge to non-interest expense.

LCNB Corp. is a financial holding company headquartered in Lebanon, Ohio.  Affiliates of LCNB Corp. are LCNB National Bank, with 25 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 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.

EX-99

LCNB Corp. and Subsidiaries

Financial Highlights

(Dollars in thousands, except per share amounts)

Condensed Income Statement		Three Months Ended June 30,		Six Months Ended June 30,
		2009	2008	2009	2008
Interest income	$	8,659	8,464	17,266	17,079
Interest expense		2,526	3,284	5,254	6,915
Net interest income		6,133	5,180	12,012	10,164
Provision for loan losses		208	51	306	134
Net interest income after provision		5,925	5,129	11,706	10,030
Non-interest income		2,211	2,164	4,341	4,227
Non-interest expense		5,767	5,002	11,684	10,047
Income before income taxes		2,369	2,291	4,363	4,210
Provision for income taxes		529	593	960	1,068
Net income		1,840	1,698	3,403	3,142
Preferred stock dividends and discount accretion		206	-	308	-
Net income available to common   shareholders	$	1,634	1,698	3,095	3,142
Dividends per common share	$	0.16	0.16	0.32	0.32
Basic earnings per common share	$	0.24	0.25	0.46	0.47
Diluted earnings per common share	$	0.24	0.25	0.46	0.47
Average basic shares outstanding		6,687,232	6,687,232	6,687,232	6,687,232
Average diluted shares outstanding		6,693,084	6,687,232	6,687,232	6,687,232
Selected Financial Ratios
Return on average assets		1.03%	1.08%	0.98%	1.02%
Return on average equity		9.64%	11.71%	9.07%	10.91%
Dividend payout ratio		66.67%	64.00%	69.57%	68.09%
Net interest margin (tax equivalent)		3.97%	3.75%	3.95%	3.77%

Selected Balance Sheet Items		June 30, 2009	December 31, 2008
Investment securities	$	194,440	139,272
Loans		454,551	453,811
Less allowance for loan losses		2,600	2,468
Net loans		451,951	451,343
Total assets		716,208	649,731
Total deposits		614,988	577,622
Short-term borrowings		1,087	2,206
Long-term debt		19,656	5,000
Total shareholders’ equity		76,082	58,116
Shares outstanding at period end		6,687,232	6,687,232
Book value per share	$	9.37	8.69
Equity to assets ratio		10.62%	8.94%
Assets Under Management
LCNB Corp. total assets	$	716,208	649,731
Trust and investments (fair value)		177,482	174,775
Mortgage loans serviced		57,027	37,783
Business cash management		27,783	39,979
Brokerage accounts (fair value)		61,755	53,633
Total assets managed	$	1,040,255	955,901