LCNB Corp. and Subsidiaries

Financial Highlights

 (Dollars in thousands, except per share amounts)

Condensed Income Statement		Three Months Ended March 31,
		2012	2011
Interest income	$	7,731	8,130
Interest expense		1,322	1,772
Net interest income		6,409	6,358
Provision for loan losses		215	664
Net interest income after provision		6,194	5,694
Non-interest income		2,336	1,915
Non-interest expense		5,448	5,785
Income before income taxes		3,082	1,824
Provision for income taxes		805	346
Net income from continuing operations		2,277	1,478
Income from discontinued operations, net of taxes		-	824
Net income	$	2,277	2,302
Dividends per common share	$	0.16	0.16
Basic earnings per common share:
Continuing operations	$	0.34	0.22
Discontinued operations		-	0.12
Diluted earnings per common share:
Continuing operations	$	0.34	0.22
Discontinued operations		-	0.12
Average shares outstanding:
Basic		6,706,295	6,689,743
Diluted		6,773,451	6,741,767
Selected Financial Ratios
Return on average assets		1.15%	1.22%
Return on average equity		11.56%	13.16%
Dividend payout ratio		47.06%	47.06%
Net interest margin (tax equivalent)		3.69%	3.87%

Selected Balance Sheet Items		March 31, 2012	December 31, 2011
Investment securities	$	265,829	267,771
Loans		456,981	461,262
Less allowance for loan losses		2,890	2,931
Net loans		454,091	458,331
Total assets		791,905	791,570
Total deposits		675,566	663,562
Short-term borrowings		10,590	21,596
Long-term debt		20,731	21,373
Total shareholders’ equity		78,513	77,960
Shares outstanding at period end		6,711,691	6,704,723
Book value per share	$	11.70	11.63
Equity to assets ratio		9.91%	9.85%
Assets Under Management
LCNB Corp. total assets	$	791,905	791,570
Trust and investments (fair value)		235,205	221,950
Loans serviced		68,250	67,410
Business cash management		8,682	8,583
Brokerage accounts (fair value)		87,250	78,863
Total assets managed	$	1,191,292	1,168,376