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 19, 2010

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 19, 2010, LCNB Corp. issued an earnings release announcing its financial results for the second quarter ended June 30, 2010.  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 19, 2010, LCNB Corp. issued an earnings release announcing its financial results for the second quarter ended June 30, 2010.  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 19, 2010

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 19, 2010	By:  /s/ Robert C. Haines II
		Robert C. Haines II Chief Financial Officer

EX-99

Exhibit 99.1

Press Release

July 19, 2010

LCNB CORP. REPORTS FINANCIAL RESULTS FOR

THE THREE AND SIX MONTHS ENDED JUNE 30, 2010

LCNB Corp. today announced net income available to common shareholders of $2,752,000 ($0.41 basic and diluted earnings per common share) and $4,964,000 ($0.74 basic and diluted earnings per common share) for the three and six months ended June 30, 2010, respectively.  This compares to $1,634,000 ($0.24 basic and diluted earnings per common share) and $3,095,000 ($0.46 basic and diluted earnings per common share) for the same three and six-month periods in 2009.  The increase in earnings resulted primarily from increases in net interest income and non-interest income and a decrease in non-interest expense.  In addition, preferred stock dividends and discount accretion reduced net income available to common shareholders for the three and six months ended June 30, 2009 by $206,000 and $308,000, respectively.  LCNB did not have these costs during 2010 because the preferred stock was redeemed from the U.S. Department of the Treasury in Oc tober 2009.  These positive factors were partially offset by an increase in the provision for loan losses.

LCNB’s loan portfolio continues to benefit from responsible underwriting and lending practices.  Current economic conditions, however, have contributed to an increase in loan delinquencies.  Net charge-offs for the first half of 2010 and 2009 totaled $567,000 and $174,000, respectively.  Non-accrual loans and loans past due 90 days or more and still accruing interest totaled $4,301,000 or 0.94% of total loans at June 30, 2010, compared to $3,864,000 or 0.84% of total loans at December 31, 2009.  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 $2,470,000 at June 30, 2010 and December 31, 2009.

Net interest income for the three and six months ended June 30, 2010 increased $283,000 and $835,000, respectively, over the comparative periods in 2009 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 2010 were $738,000 and $791,000 greater than the comparative periods in 2009 primarily due to death benefits received from bank owned life insurance.  

Non-interest expense for the three and six months ended June 30, 2010 decreased $227,000 and $624,000, respectively, from the comparative periods in 2009.  The decrease for the three-month period is primarily due to the absence of an industry-wide FDIC special assessment of $325,000 that LCNB recognized during the second quarter 2009.  The decrease for the six-month period is due to the absence of the FDIC special assessment and the absence of a $722,000 one-time pension plan related charge recognized in the first quarter 2009.  These decreases were partially offset by increases in regular FDIC insurance expense, salaries and wages, occupancy expense, and other real estate owned charges.

The provision for loan losses for the three and six months ended June 30, 2010 increased $303,000 and $413,000, respectively over the comparative periods in 2009, reflecting increased loan delinquencies, increased net charge-offs, and deteriorating economic conditions.  

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

Exhibit 99.2

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,
		2010	2009	2010	2009
Interest income	$	8,521	8,659	17,114	17,266
Interest expense		2,105	2,526	4,267	5,254
Net interest income		6,416	6,133	12,847	12,012
Provision for loan losses		511	208	719	306
Net interest income after provision		5,905	5,925	12,128	11,706
Non-interest income		2,949	2,211	5,132	4,341
Non-interest expense		5,540	5,767	11,060	11,684
Income before income taxes		3,314	2,369	6,200	4,363
Provision for income taxes		562	529	1,236	960
Net income		2,752	1,840	4,964	3,403
Preferred stock dividends and discount accretion		-	206	-	308
Net income available to common   shareholders	$	2,752	1,634	4,964	3,095
Dividends per common share	$	0.16	0.16	0.32	0.32
Basic earnings per common share	$	0.41	0.24	0.74	0.46
Diluted earnings per common share	$	0.41	0.24	0.74	0.46
Average basic shares outstanding		6,687,232	6,687,232	6,687,232	6,687,232
Average diluted shares outstanding		6,742,663	6,693,084	6,736,435	6,687,232
Selected Financial Ratios
Return on average assets		1.46%	1.03%	1.33%	0.98%
Return on average equity		16.12%	9.64%	14.76%	9.07%
Dividend payout ratio		39.02%	66.67%	43.24%	69.57%
Net interest margin (tax equivalent)		4.06%	3.97%	4.08%	3.95%

Selected Balance Sheet Items		June 30, 2010	December 31, 2009
Investment securities	$	219,064	217,639
Loans		459,722	460,416
Less allowance for loan losses		3,150	2,998
Net loans		456,572	457,418
Total assets		774,979	734,409
Total deposits		671,982	624,179
Short-term borrowings		3,469	14,265
Long-term debt		23,811	24,960
Total shareholders’ equity		69,995	65,615
Shares outstanding at period end		6,687,232	6,687,232
Book value per share	$	10.47	9.81
Equity to assets ratio		9.03%	8.93%
Assets Under Management
LCNB Corp. total assets	$	774,979	734,409
Trust and investments (fair value)		212,024	197,125
Mortgage loans serviced		56,639	57,369
Business cash management		12,634	17,902
Brokerage accounts (fair value)		73,538	72,202
Total assets managed	$	1,129,814	1,079,007