ACQUISITION (Tables)

12 Months Ended

Dec. 31, 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	532		1,624
Total identifiable assets acquired	110,687		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	10,921		11,298

Goodwill resulting from merger	2,545		13,452

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 dates of the mergers. The estimated amount of BNB's 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 2015 were as follows (in thousands):



Total revenue	$	1,111
Net income	212

Acquired Entity's Estimated Pro Forma Financial Information

The following table presents unaudited pro forma information as if the merger with BNB 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 comparable information for 2014 includes adjustments for Eaton National and the comparable information for 2013 includes adjustments for Eaton National and First Capital. The pro forma information does not necessarily reflect the results of operations that would have occurred had the merger with BNB occurred in 2013. In particular, expected operational cost savings are not reflected in the pro forma amounts.



	For Years Ended December 31,
	2015		2014	2013
Total revenue	$	50,213	47,595	50,089
Net income	11,883		10,508	11,505
Basic earnings per common share	1.20		1.07	1.16
Diluted earnings per common share	1.19		1.05	1.14