8-K

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 19, 2009

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 19, 2009, LCNB Corp. issued an earnings release announcing its financial results for the third quarter ended September 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 October 19, 2009, LCNB Corp. issued an earnings release announcing its financial results for the third quarter ended September 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 October 19, 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: October 19, 2009	By:  /s/ Robert C. Haines II
		Robert C. Haines II Chief Financial Officer

EX-99

Press Release

October 19, 2009

LCNB CORP. REPORTS FINANCIAL RESULTS FOR

THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2009

LCNB Corp. today announced net income available to common shareholders of $1,837,000 ($0.27 basic and diluted earnings per common share) and $4,932,000 ($0.74 basic and diluted earnings per common share) for the three and nine months ended September 30, 2009, respectively.  This compares to $1,794,000 ($0.27 basic and diluted earnings per common share) and $4,936,000 ($0.74 basic and diluted earnings per common share) for the same three and nine-month periods in 2008.  

Significantly affecting net income for the 2009 periods were the provision for loan losses and industry-wide increases in FDIC premium expense.  The provision for loan losses for the three and nine month periods in 2009 was $664,000 and $970,000, respectively, compared to $188,000 and $322,000 for the same periods in 2008.  The increase in the provision for loan losses reflects increased loan delinquencies and current economic conditions.  FDIC premiums expensed during the three and nine months ended September 30, 2009 totaled $317,000 and $926,000, respectively, compared to $21,000 and $52,000 for the comparable periods in 2008.  

Current economic conditions have contributed to an increase in loan delinquencies, but LCNB’s loan portfolio continues to benefit from responsible underwriting and lending practices.  Net charge-offs for the first nine months of 2009 and 2008 totaled $639,000 and $322,000, respectively.  Non-accrual loans and loans past due 90 days or more and still accruing interest totaled $1,781,000 or 0.39% of total loans at September 30, 2009, compared to $3,087,000 or 0.68% of total loans at December 31, 2008.  Other real estate owned (which includes property acquired through foreclosure or deed-in-lieu of foreclosure and also includes property deemed to be in-substance foreclosed) and other repossessed assets totaled approximately $2,424,000 at September 30, 2009, compared to $89,000 at December 31, 2008.  Non-accrual loans and loans past due 90 days or more decreased and other real estate owned increased largely due to the transfer of co mmercial real estate property into the other real estate owned category.

Net interest income for the three and nine months ended September 30, 2009 increased $995,000 and $2,843,000, respectively, over the comparative periods in 2008 primarily due to growth in interest-earning assets and a reduction in general market rates.

The increase in net interest income was partially offset by increases of $266,000 and $1,903,000 in non-interest expense for the three and nine months ended September 30, 2009, respectively, and the previously discussed increases in the provision for loan losses.  In addition to the increases in FDIC premium expense, the increase in non-interest expense was primarily due to increased salaries and wages resulting from annual increases and an increase in the number of employees.  The nine-month increase in non-interest expense was also due to a $722,000 pension related charge in the first quarter 2009.  Increases in non-interest expenses were partially offset by decreases in retirement plan costs and 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 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 September 30,		Nine Months Ended September 30,
		2009	2008	2009	2008
Interest income	$	8,768	8,608	26,034	25,687
Interest expense		2,455	3,290	7,709	10,205
Net interest income		6,313	5,318	18,325	15,482
Provision for loan losses		664	188	970	322
Net interest income after provision		5,649	5,130	17,355	15,160
Non-interest income		2,176	2,203	6,517	6,430
Non-interest expense		5,194	4,928	16,878	14,975
Income before income taxes		2,631	2,405	6,994	6,615
Provision for income taxes		588	611	1,548	1,679
Net income		2,043	1,794	5,446	4,936
Preferred stock dividends and discount accretion		206	-	514	-
Net income available to common   shareholders	$	1,837	1,794	4,932	4,936
Dividends per common share	$	0.16	0.16	0.48	0.48
Basic earnings per common share	$	0.27	0.27	0.74	0.74
Diluted earnings per common share	$	0.27	0.27	0.74	0.74
Average basic shares outstanding		6,687,232	6,687,232	6,687,232	6,687,232
Average diluted shares outstanding		6,707,746	6,687,232	6,693,032	6,687,232
Selected Financial Ratios
Return on average assets		1.09%	1.09%	1.02%	1.05%
Return on average equity		10.46%	12.27%	9.54%	11.38%
Dividend payout ratio		59.26%	59.26%	64.86%	64.86%
Net interest margin (tax equivalent)		3.94%	3.68%	3.93%	3.74%

Selected Balance Sheet Items		September 30, 2009	December 31, 2008
Investment securities	$	216,801	139,272
Loans		459,998	453,811
Less allowance for loan losses		2,799	2,468
Net loans		457,199	451,343
Total assets		749,806	649,731
Total deposits		639,081	577,622
Short-term borrowings		317	2,206
Long-term debt		25,309	5,000
Total shareholders’ equity		79,165	58,116
Shares outstanding at period end		6,687,232	6,687,232
Book value per share	$	9.83	8.69
Equity to assets ratio		10.56%	8.94%
Assets Under Management
LCNB Corp. total assets	$	749,806	649,731
Trust and investments (fair value)		186,250	174,775
Mortgage loans serviced		57,111	37,783
Business cash management		19,338	39,979
Brokerage accounts (fair value)		43,912	53,633
Total assets managed	$	1,056,417	955,901