Acquisitions (Tables)

6 Months Ended

Jun. 30, 2015

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

The mergers with BNB and Eaton National were 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 respective merger dates, as summarized in the following table (in thousands):



	BNB		Eaton National
Consideration Paid:
Common shares issued	$	9,063	—
Cash paid to shareholder(s)	4,403		24,750
Total consideration paid	13,466		24,750

Identifiable Assets Acquired:
Cash and cash equivalents	13,396		15,635
Investment securities	58,239		35,859
Federal Reserve Bank stock	130		41
Federal Home Loan Bank stock	—		784
Loans	34,661		115,944
Premises and equipment	2,311		1,314
Bank owned life insurance	—		3,618
Core deposit intangible	1,418		2,466
Other real estate owned	—		262
Other assets	527		1,624
Total identifiable assets acquired	110,682		177,547

Liabilities Assumed:
Deposits	99,133		165,335
Short-term borrowings	—		651
Deferred income taxes	576		—
Other liabilities	57		263
Total liabilities assumed	99,766		166,249

Total Identifiable Net Assets Acquired	10,916		11,298

Goodwill resulting from merger	2,550		13,452

Estimated Amount Of Acquired Company Total Revenue And Net Income Included In Acquirer Income Statement

The estimated amount of BNB revenue (net interest income plus non-interest income) and net income, excluding merger-related expenses, included in LCNB's consolidated statement of income for the three and six months ended June 30, 2015 were as follows (in thousands):

Pro Forma Information

The following table presents unaudited pro forma information as if the merger with BNB had occurred on January 1, 2014 (in thousands). This pro forma information gives effect to certain adjustments, including acquisition accounting fair value adjustments, amortization of the core deposit intangible, and related income tax effects. It does not include merger-related expenses. The pro forma information does not necessarily reflect the results of operations that would have occurred had the merger with BNB occurred in 2014. In particular, expected operational cost savings are not reflected in the pro forma amounts.



	Three Months Ended June 30,			Six Months Ended June 30,
	2015		2014	2015	2014
Total revenue	$	13,620	11,999	25,892	23,123
Net income	3,127		2,692	6,377	4,096
Basic earnings per common share	0.32		0.28	0.65	0.42
Diluted earnings per common share	0.31		0.27	0.64	0.41

Three Months

Six Months

Total revenue

Net income