Acquisition (Tables)

3 Months Ended

Mar. 31, 2014

Fair Values of Assets Acquired, Liabilities Assumed, and Consideration Paid

The merger with ENB was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed, and consideration paid were recorded at their estimated fair values as of the merger date, as summarized in the following table (in thousands):



Consideration Paid:
Cash paid to shareholder	$	24,750

Identifiable Assets Acquired:
Cash and cash equivalents	15,635
Investment securities:
Available-for-sale	35,859
Federal Reserve Bank stock	41
Federal Home Loan Bank stock	784
Loans	116,133
Premises and equipment	1,314
Bank owned life insurance	3,618
Core deposit intangible	2,466
Other real estate owned	262
Other assets	1,645
Total identifiable assets acquired	177,757

Liabilities Assumed:
Deposits	165,335
Short-term borrowings	651
Other liabilities	259
Total liabilities assumed	166,245

Total Identifiable Net Assets Acquired	11,512

Goodwill resulting from merger	$	13,238

Results of Operations are Included in Consolidated Statement of Income from the Date of Merger

The results of operations are included in the consolidated statement of income from the date of the merger. The estimated amount of ENB revenue (net interest income plus non-interest income) and net income, excluding merger and data conversion costs, included in LCNB's consolidated statement of income for the three months ended March 31, 2014 were as follows (in thousands):



Total revenue	$	1,139
Net income	371

Acquired Entity's Estimated Pro Forma Financial Information

The following table presents unaudited pro forma information as if the merger with ENB had occurred on January 1, 2013 (in thousands). This pro forma information gives effect to certain adjustments, including purchase accounting fair value adjustments, amortization of the core deposit intangible, and related income tax effects. It does not include merger and data conversion costs. The pro forma information does not necessarily reflect the results of operations that would have occurred had the merger with ENB occurred in 2013. In particular, expected operational cost savings are not reflected in the pro forma amounts.



	Three Months Ended March 31,
	2014		2013
Total revenue	$	10,935	11,756
Net income	2,331		2,306
Basic earnings per common share	0.25		0.25
Diluted earnings per common share	0.25		0.25