Income Taxes

The Tax Cuts and Jobs Act ("Tax Act") was enacted on December 22, 2017. Among other changes, the Tax Act reduced the maximum U.S. Federal corporate tax rate from 35% to 21%.

A reconciliation between the statutory income tax and LCNB's effective tax rate on income from continuing operations follows:



	For the Three Months Ended March 31,
	2018		2017
Statutory tax rate	21.0	%	34.6	%
Increase (decrease) resulting from:
Tax exempt interest	(4.5	)%	(6.1	)%
Tax exempt income on bank owned life insurance	(1.2	)%	(1.5	)%
Captive insurance premium income	(0.6	)%	—	%
Other, net	0.4	%	(0.2	)%
Effective tax rate	15.1	%	26.8	%