<SEC-DOCUMENT>0000906318-11-000090.txt : 20110718
<SEC-HEADER>0000906318-11-000090.hdr.sgml : 20110718
<ACCEPTANCE-DATETIME>20110718130215
ACCESSION NUMBER:		0000906318-11-000090
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20110718
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20110718
DATE AS OF CHANGE:		20110718

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			LCNB CORP
		CENTRAL INDEX KEY:			0001074902
		STANDARD INDUSTRIAL CLASSIFICATION:	NATIONAL COMMERCIAL BANKS [6021]
		IRS NUMBER:				311626393
		STATE OF INCORPORATION:			OH
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-26121
		FILM NUMBER:		11972301

	BUSINESS ADDRESS:	
		STREET 1:		2 NORTH BROADWAY
		CITY:			LEBANON
		STATE:			OH
		ZIP:			45036
		BUSINESS PHONE:		5139321414

	MAIL ADDRESS:	
		STREET 1:		2 NORTH BROADWAY
		CITY:			LEBANON
		STATE:			OH
		ZIP:			45036
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>lcnb8k71811.htm
<DESCRIPTION>FORM 8-K
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<DIV style="width:624px"><P style="margin:0px; font-size:12pt" align=center>SECURITIES AND EXCHANGE COMMISSION</P>
<P style="margin:0px; font-size:12pt" align=center>Washington, D.C. 20549</P>
<P style="margin:0px; font-size:12pt" align=center>___________________</P>
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<P style="margin:0px" align=center><BR></P>
<P style="margin:0px; font-size:12pt" align=center>FORM 8K</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px; font-size:12pt" align=center>CURRENT REPORT</P>
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<P style="margin:0px; font-size:12pt" align=center>Pursuant to Section 13 or 15(d) of the</P>
<P style="margin:0px; font-size:12pt" align=center>Securities Exchange Act of 1934</P>
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<P style="margin-top:0px; margin-bottom:32px; font-size:12pt" align=center>Date of Report (Date of earliest event reported): &nbsp;July 18, 2011</P>
<P style="margin:0px; font-size:12pt" align=center>LCNB CORP.</P>
<P style="margin:0px; font-size:12pt" align=center>(Exact name of Registrant as specified in its Charter)</P>
<P style="margin:0px"><BR></P>
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<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:0"><TD width=192 /><TD width=48 /><TD width=192 /><TD width=192 /></TR>
<TR><TD style="margin-top:0px" valign=top width=192><P style="margin:0px; font-size:12pt" align=center>Ohio</P>
</TD><TD style="margin-top:0px" valign=top width=48><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=192><P style="margin:0px; font-size:12pt" align=center>0-26121</P>
</TD><TD style="margin-top:0px" valign=top width=192><P style="margin:0px; font-size:12pt" align=center>31-1626393</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=192><P style="margin:0px; font-size:12pt" align=center>(State or other jurisdiction of incorporation)</P>
</TD><TD style="margin-top:0px" valign=top width=48><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=192><P style="margin:0px; font-size:12pt" align=center>(Commission File No.)</P>
</TD><TD style="margin-top:0px" valign=top width=192><P style="margin:0px; font-size:12pt" align=center>(IRS Employer Identification Number)</P>
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</DIV><TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:0"><TD width=384 /><TD width=119.467 /><TD width=127.733 /></TR>
<TR><TD style="margin-top:0px" valign=top width=384><P style="margin:0px; font-size:12pt" align=center>2 North Broadway, Lebanon, Ohio</P>
</TD><TD style="margin-top:0px" valign=top width=119.467><P style="margin:0px; font-size:12pt" align=center>45036</P>
</TD><TD style="margin-top:0px" valign=top width=127.733><P style="margin:0px"><BR></P>
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<TR><TD style="margin-top:0px" valign=top width=384><P style="margin:0px; font-size:12pt" align=center>(Address of principal executive offices)</P>
</TD><TD style="margin-top:0px" valign=top width=119.467><P style="margin:0px; font-size:12pt" align=center>(Zip Code)</P>
</TD><TD style="margin-top:0px" valign=top width=127.733><P style="margin:0px"><BR></P>
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<P style="margin-top:0px; margin-bottom:16px; font-size:12pt" align=center>Registrant<font style='font-family:Arial Unicode MS,Times New Roman'>&#8217;</font>s telephone number, including area code: &nbsp;&nbsp;(513) 932-1414</P>
<P style="margin:0px; font-size:12pt" align=center>N/A</P>
<P style="margin:0px; font-size:12pt" align=center>(Former name or former address, if changed since last report)</P>
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<P style="margin-top:6.667px; margin-bottom:6.667px; font-size:12pt; page-break-before:always"><B>Item 2.02 &nbsp;&nbsp;Results of Operations and Financial Condition.</B></P>
<P style="margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt" align=justify>On July 18, 2011, LCNB Corp. issued an earnings release announcing its financial results for the second quarter ended June 30, 2011. &nbsp;A copy of the earnings release (Exhibit 99.1) and unaudited financial highlights (Exhibit&#160;99.2) are attached and are furnished under this Item 2.02. </P>
<P style="margin-top:6.667px; margin-bottom:6.667px; font-size:12pt"><B>Item 8.01 &nbsp;&nbsp;Other Events. </B></P>
<P style="margin-top:6.667px; margin-bottom:16px; text-indent:48px; font-size:12pt" align=justify>On July 18, 2011, LCNB Corp. issued an earnings release announcing its financial results for the second quarter ended June 30, 2011. &nbsp;A copy of the earnings release (Exhibit 99.1) and unaudited financial highlights (Exhibit 99.2) are attached and are furnished under this Item 8.01. &nbsp;</P>
<P style="margin-top:6.667px; margin-bottom:16px; font-size:12pt"><B>Item 9.01 &nbsp;&nbsp;Financial Statements and Exhibits.</B></P>
<P style=margin-top:6.667px;margin-bottom:-1pt;font-size:1pt /><P style="margin-top:0px; margin-bottom:-2px; width:48px; font-size:12pt; float:left">(c)</P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:-2px; font-size:12pt">Exhibits</P>
<P style="margin:6.667px; clear:left"><BR></P>
<P style=margin-top:6.667px;margin-bottom:-1pt;font-size:1pt /><P style="margin-top:0px; margin-bottom:-2px; width:144px; font-size:12pt; float:left"><B>Exhibit No.</B></P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:-2px; font-size:12pt"><B>Description</B></P>
<P style=margin-top:6.667px;margin-bottom:-1pt;font-size:1pt /><P style="margin-top:0px; margin-bottom:-2px; width:144px; font-size:12pt; clear:left; float:left">99.1</P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:-2px; font-size:12pt">Press release dated July 18, 2011</P>
<P style=margin-top:6.667px;margin-bottom:-1pt;font-size:1pt /><P style="margin-top:0px; margin-bottom:-2px; width:144px; font-size:12pt; clear:left; float:left">99.2</P>
<P style="margin-top:0px; margin-bottom:6.667px; text-indent:-2px; font-size:12pt">Unaudited Financial Highlights </P>
<P style="margin:6.667px; clear:left"><BR></P>
<P style="margin-top:0px; margin-bottom:16px; font-size:12pt" align=center>SIGNATURES</P>
<P style="margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:12pt" align=justify>Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.</P>
<P style="margin:0px"><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:0"><TD width=48 /><TD width=48 /><TD width=48 /><TD width=48 /><TD width=48 /><TD width=48 /><TD width=48 /><TD width=48 /><TD width=48 /><TD width=48 /><TD width=144 /></TR>
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</TD><TD style="margin-top:0px" valign=top width=288 colspan=4><P style="margin-top:0px; margin-bottom:7.4px; font-size:12pt">LCNB CORP.</P>
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</TD><TD style="margin-top:0px" valign=top width=48><P style="margin-top:0px; margin-bottom:7.4px"><BR></P>
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<TR><TD style="margin-top:0px" valign=top width=240 colspan=5><P style="margin:0px; font-size:12pt">Date: July 18, 2011</P>
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</TD><TD style="margin-top:0px" valign=top width=288 colspan=4><P style="margin:0px; font-size:12pt">By: &nbsp;<U>/s/ Robert C. Haines II&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</U></P>
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<TR><TD style="margin-top:0px" valign=top width=48><P style="margin:0px"><BR></P>
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</TD><TD style="margin-top:0px" valign=top width=240 colspan=3><P style="margin:0px; font-size:12pt">Robert C. Haines II</P>
<P style="margin:0px; font-size:12pt">Chief Financial Officer</P>
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</TD><TD style="margin-top:0px" valign=top width=48><P style="margin-top:0px; margin-bottom:7.4px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=48><P style="margin-top:0px; margin-bottom:7.4px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=48><P style="margin-top:0px; margin-bottom:7.4px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=48><P style="margin-top:0px; margin-bottom:7.4px"><BR></P>
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</TD><TD style="margin-top:0px" valign=top width=240 colspan=3><P style="margin-top:0px; margin-bottom:7.4px"><BR></P>
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<BR></P>
<P style="margin:0px; font-size:12pt; page-break-before:always"><B>Exhibit 99.1</B></P>
<P style="margin:0px; font-size:12pt"><B>Press Release</B></P>
<P style="margin:0px; font-size:12pt"><B>July 18, 2011</B></P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>LCNB CORP. REPORTS FINANCIAL RESULTS FOR</B></P>
<P style="margin-top:0px; margin-bottom:16px; font-size:12pt" align=center><B>THE THREE AND SIX MONTHS ENDED JUNE 30, 2011</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-size:12pt">LCNB Corp. (LCNB) today announced net income available to common shareholders of $1,992,000 (total basic and diluted earnings per common share of $0.30) and $4,294,000 (total basic and diluted earnings per common share of $0.64) for the three and six months ended June 30, 2011, respectively. &nbsp;This compares to $2,752,000 (total basic and diluted earnings per common share of $0.41) and $4,964,000 (total basic and diluted earnings per common share of $0.74) for the same three and six-month periods in 2010. &nbsp;</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-size:12pt">In late 2010, LCNB<font style='font-family:Arial Unicode MS,Times New Roman'>&#8217;</font>s board of directors resolved to sell its insurance agency subsidiary, Dakin Insurance Agency, Inc., and, therefore, the subsidiary's financial results are reported in the income statement as income from discontinued operations, net of taxes. &nbsp;Net income for the six months ended June 30, 2011 includes income from discontinued operations, net of taxes of $793,000, which is a $655,000 increase from the same period in 2010. &nbsp;This increase was caused by the sale of LCNB<font style='font-family:Arial Unicode MS,Times New Roman'>&#8217;</font>s insurance agency subsidiary during the first quarter 2011 and reflects the gain recognized on the sale less certain related closing costs, taxes, and a curtailment expense recognized in LCNB<font style='font-family:Arial Unicode MS,Times New Roman'>&#8217;</font>s nonqualified defined benefit retirement plan due to the sale.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-size:12pt">Net income from continuing operations for the three and six months ended June 30, 2011 was $2,023,000 and $3,501,000, respectively. &nbsp;This compares to $2,685,000 and $4,826,000 for the comparable periods in 2010. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-size:12pt">Net loan charge-offs for the first six months of 2011 and 2010 totaled $420,000 and $567,000, respectively. &nbsp;Non-accrual loans and loans past due 90 days or more and still accruing interest totaled $3,756,000 or 0.82% of total loans at June 30, 2011, compared to $4,061,000 or 0.89% of total loans at December 31, 2010. &nbsp;The decrease was primarily due to the receipt of a guarantee payment on a Small Business Administration loan that had been classified as non-accrual at December 31, 2010. &nbsp;Other real estate owned (which includes property acquired through foreclosure or deed-in-lieu of foreclosure and also includes property deemed to be in-substance foreclosed) and other repossessed assets totaled approximately $2,226,000 at June 30, 2011 and $2,114,000 at December 31, 2010. &nbsp;The increase was primarily due to inventory repossessed from a commercial borrower that ceased operations.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-size:12pt">Net interest income for the three months ended June 30, 2011 increased $5,000 over the comparative period in 2010. &nbsp;Net interest income for the six months ended June 30, 2011 decreased $77,000 over the comparative period in 2010, primarily due to a reduction in general market rates. &nbsp;Non-interest income for the three and six-month periods in 2011 were $658,000 and $480,000, respectively, less than the comparative periods in 2010 primarily due to the </P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px; font-size:12pt; page-break-before:always">absence of death benefits received from bank owned life insurance during the second quarter 2010. &nbsp;&nbsp;</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-size:12pt">Non-interest expense for the three and six months ended June 30, 2011 increased $110,000 and $704,000, respectively, from the comparative periods in 2010 primarily due to increases in salaries and employee benefits. &nbsp;</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-size:12pt">LCNB Corp. is a financial holding company headquartered in Lebanon, Ohio. &nbsp;LCNB Corp.<font style='font-family:Arial Unicode MS,Times New Roman'>&#8217;</font>s only business is ownership of LCNB National Bank, which has 26 offices located in Warren, Butler, Montgomery, Clinton, Clermont, and Hamilton Counties, Ohio. &nbsp;Additional information about LCNB Corp. and information about products and services offered by LCNB National Bank can be found on the internet at www.lcnb.com.</P>
<P style="margin:0px; font-size:12pt">&nbsp;&nbsp;</P>
<P style="margin:0px; padding-left:5.333px; padding-top:1.333px; padding-right:5.333px; padding-bottom:1.333px; font-size:12pt; border:1px solid #000000">Certain matters disclosed herein may be deemed to be forward-looking statements that involve risks and uncertainties, including regulatory policy changes, interest rate fluctuations, loan demand, loan delinquencies and losses, and other risks. &nbsp;Actual strategies and results in future time periods may differ materially from those currently expected. &nbsp;Such forward-looking statements represent management<font style='font-family:Arial Unicode MS,Times New Roman'>&#8217;</font>s judgment as of the current date. &nbsp;LCNB disclaims any intent or obligation to update such forward-looking statements. &nbsp;&nbsp;LCNB intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.</P>
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<P style="margin:0px; font-size:12pt; page-break-before:always"><B>Exhibit 99.2</B></P>
<P style="margin:0px; font-size:12pt" align=center><B>LCNB Corp. and Subsidiaries</B></P>
<P style="margin:0px; font-size:12pt" align=center><B>Financial Highlights</B></P>
<P style="margin:0px; font-size:12pt" align=center>&nbsp;(Dollars in thousands, except per share amounts)</P>
<P style="margin:0px"><BR></P>
</DIV><TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:0"><TD width=318 /><TD width=18 /><TD width=90 /><TD width=18 /><TD width=90 /><TD width=18 /><TD width=90 /><TD width=18 /><TD width=90 /></TR>
<TR><TD style="margin-top:0px" valign=top width=318><P style="margin:0px"><BR></P>
<P style="margin:0px; font-size:9pt"><B>Condensed Income Statement</B></P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=198 colspan=3><P style="margin:0px; font-size:9pt" align=center>Three Months Ended</P>
<P style="margin:0px; font-size:9pt" align=center>June 30,</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=198 colspan=3><P style="margin:0px; font-size:9pt" align=center>Six Months Ended</P>
<P style="margin:0px; font-size:9pt" align=center>June 30,</P>
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<TR><TD style="margin-top:0px" valign=top width=318><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=90><P style="margin:0px; font-size:9pt" align=center>2011</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px" align=center><BR></P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=90><P style="margin:0px; font-size:9pt" align=center>2010</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px" align=center><BR></P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=90><P style="margin:0px; font-size:9pt" align=center>2011</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px" align=center><BR></P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=90><P style="margin:0px; font-size:9pt" align=center>2010</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=318><P style="margin:0px; font-size:9pt">Interest income</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px; font-size:9pt" align=right>$</P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>8,099</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>8,532</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>16,229</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>17,134</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=318><P style="margin:0px; font-size:9pt">Interest expense</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>1,667</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>2,105</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>3,439</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>4,267</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=318><P style="margin:0px; font-size:9pt">&nbsp;&nbsp;Net interest income</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>6,432</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>6,427</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>12,790</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>12,867</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=318><P style="margin:0px; font-size:9pt">Provision for loan losses</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>224</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>511</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>888</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>719</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=318><P style="margin:0px; font-size:9pt">&nbsp;&nbsp;Net interest income after provision</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>6,208</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>5,916</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>11,902</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>12,148</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=318><P style="margin:0px; font-size:9pt">Non-interest income</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>1,856</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>2,514</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>3,787</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>4,267</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=318><P style="margin:0px; font-size:9pt">Non-interest expense</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>5,328</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>5,218</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>11,129</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>10,425</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=318><P style="margin:0px; font-size:9pt">&nbsp;&nbsp;Income before income taxes</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>2,736</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>3,212</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>4,560</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>5,990</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=318><P style="margin:0px; font-size:9pt">Provision for income taxes</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>713</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>527</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>1,059</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>&nbsp;&nbsp;1,164</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=318><P style="margin:0px; font-size:9pt">&nbsp;&nbsp;Net income from continuing operations</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>2,023</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>2,685</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>3,501</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>4,826</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=318><P style="margin:0px; font-size:9pt">Income from discontinued operations,</P>
<P style="margin:0px; font-size:9pt">&nbsp;&nbsp;Net of taxes</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=90><P style="margin:0px" align=right><BR></P>
<P style="margin:0px; font-size:9pt" align=right>(31)</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=90><P style="margin:0px" align=right><BR></P>
<P style="margin:0px; font-size:9pt" align=right>67</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=90><P style="margin:0px" align=right><BR></P>
<P style="margin:0px; font-size:9pt" align=right>793</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=90><P style="margin:0px" align=right><BR></P>
<P style="margin:0px; font-size:9pt" align=right>138</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=318><P style="margin:0px; font-size:9pt">&nbsp;&nbsp;Net income</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px; font-size:9pt">$</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>1,992</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>2,752</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>4,294</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>4,964</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=318><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px" align=right><BR></P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px" align=right><BR></P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px" align=right><BR></P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px" align=right><BR></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=318><P style="margin:0px; font-size:9pt">Dividends per common share</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px; font-size:9pt">$</P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>0.16</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>0.16</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>0.32</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>0.32</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=318><P style="margin:0px; font-size:9pt">Basic earnings per common share:</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px" align=right><BR></P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px" align=right><BR></P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px" align=right><BR></P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px" align=right><BR></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=318><P style="margin:0px; font-size:9pt">&nbsp;&nbsp;Continuing operations</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px; font-size:9pt">$</P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>0.30</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>0.40</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>0.52</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>0.72</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=318><P style="margin:0px; font-size:9pt">&nbsp;&nbsp;Discontinued operations</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>0.00</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>0.01</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>0.12</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>0.02</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=318><P style="margin:0px; font-size:9pt">Diluted earnings per common share:</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px" align=right><BR></P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px" align=right><BR></P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px" align=right><BR></P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px" align=right><BR></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=318><P style="margin:0px; font-size:9pt">&nbsp;&nbsp;Continuing operations</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px; font-size:9pt">$</P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>0.30</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>0.40</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>0.52</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>0.72</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=318><P style="margin:0px; font-size:9pt">&nbsp;&nbsp;Discontinued operations</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>0.00</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>0.01</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>0.12</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>0.02</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=318><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px" align=right><BR></P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px" align=right><BR></P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px" align=right><BR></P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px" align=right><BR></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=318><P style="margin:0px; font-size:9pt">Average basic shares outstanding</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>6,689,743</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>6,687,232</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>6,689,743</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>6,687,232</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=318><P style="margin:0px; font-size:9pt">Average diluted shares outstanding</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>6,746,791</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>6,742,663</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>6,744,375</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>6,736,435</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=318><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px" align=right><BR></P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px" align=right><BR></P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px" align=right><BR></P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px" align=right><BR></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=318><P style="margin:0px; font-size:9pt"><B>Selected Financial Ratios</B></P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px" align=right><BR></P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px" align=right><BR></P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px" align=right><BR></P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px" align=right><BR></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=318><P style="margin:0px; font-size:9pt">Return on average assets</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>1.00%</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>1.46%</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>1.11%</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>1.33%</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=318><P style="margin:0px; font-size:9pt">Return on average equity</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>10.97%</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>16.12%</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>12.04%</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>14.76%</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=318><P style="margin:0px; font-size:9pt">Dividend payout ratio</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>53.33%</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>39.02%</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>50.00%</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>43.24%</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=318><P style="margin:0px; font-size:9pt">Net interest margin (tax equivalent)</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>3.70%</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>3.95%</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>3.79%</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=90><P style="margin:0px; font-size:9pt" align=right>4.02%</P>
</TD></TR>
</TABLE>
<DIV style="width:720px"><P style="margin:0px"><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:0"><TD width=307.2 /><TD width=18 /><TD width=96 /><TD width=18 /><TD width=106.8 /></TR>
<TR><TD style="margin-top:0px" valign=top width=307.2><P style="margin:0px"><BR></P>
<P style="margin:0px; font-size:9pt"><B>Selected Balance Sheet Items</B></P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=96><P style="margin:0px; font-size:9pt" align=center>June 30,</P>
<P style="margin:0px; font-size:9pt" align=center>2011</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px" align=center><BR></P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=106.8><P style="margin:0px; font-size:9pt" align=center>December 31,</P>
<P style="margin:0px; font-size:9pt" align=center>2010</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=307.2><P style="margin:0px; font-size:9pt">Investment securities</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px; font-size:9pt">$</P>
</TD><TD style="margin-top:0px" valign=top width=96><P style="margin:0px; font-size:9pt" align=right>265,044</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px" align=center><BR></P>
</TD><TD style="margin-top:0px" valign=top width=106.8><P style="margin:0px; font-size:9pt" align=right>&nbsp;251,053</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=307.2><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=96><P style="margin:0px" align=right><BR></P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px" align=center><BR></P>
</TD><TD style="margin-top:0px" valign=top width=106.8><P style="margin:0px" align=right><BR></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=307.2><P style="margin:0px; font-size:9pt">Loans</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=96><P style="margin:0px; font-size:9pt" align=right>457,556</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px" align=center><BR></P>
</TD><TD style="margin-top:0px" valign=top width=106.8><P style="margin:0px; font-size:9pt" align=right>454,991</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=307.2><P style="margin:0px; font-size:9pt">&nbsp;&nbsp;Less allowance for loan losses</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=96><P style="margin:0px; font-size:9pt" align=right>3,109</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px" align=center><BR></P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=106.8><P style="margin:0px; font-size:9pt" align=right>2,641</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=307.2><P style="margin:0px; font-size:9pt">&nbsp;&nbsp;Net loans</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=96><P style="margin:0px; font-size:9pt" align=right>454,447</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px" align=center><BR></P>
</TD><TD style="margin-top:0px" valign=top width=106.8><P style="margin:0px; font-size:9pt" align=right>452,350</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=307.2><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=96><P style="margin:0px" align=right><BR></P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px" align=center><BR></P>
</TD><TD style="margin-top:0px" valign=top width=106.8><P style="margin:0px" align=right><BR></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=307.2><P style="margin:0px; font-size:9pt">Total assets</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=96><P style="margin:0px; font-size:9pt" align=right>792,950</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px" align=center><BR></P>
</TD><TD style="margin-top:0px" valign=top width=106.8><P style="margin:0px; font-size:9pt" align=right>760,134</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=307.2><P style="margin:0px; font-size:9pt">Total deposits</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=96><P style="margin:0px; font-size:9pt" align=right>678,751</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px" align=center><BR></P>
</TD><TD style="margin-top:0px" valign=top width=106.8><P style="margin:0px; font-size:9pt" align=right>638,539</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=307.2><P style="margin:0px; font-size:9pt">Short-term borrowings</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=96><P style="margin:0px; font-size:9pt" align=right>12,198</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px" align=center><BR></P>
</TD><TD style="margin-top:0px" valign=top width=106.8><P style="margin:0px; font-size:9pt" align=right>&nbsp;21,691</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=307.2><P style="margin:0px; font-size:9pt">Long-term debt</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=96><P style="margin:0px; font-size:9pt" align=right>22,061</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px" align=center><BR></P>
</TD><TD style="margin-top:0px" valign=top width=106.8><P style="margin:0px; font-size:9pt" align=right>23,120</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=307.2><P style="margin:0px; font-size:9pt">Total shareholders<font style='font-family:Arial Unicode MS,Times New Roman'>&#8217;</font> equity</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=96><P style="margin:0px; font-size:9pt" align=right>74,116</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px" align=center><BR></P>
</TD><TD style="margin-top:0px" valign=top width=106.8><P style="margin:0px; font-size:9pt" align=right>70,707</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=307.2><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=96><P style="margin:0px" align=right><BR></P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px" align=center><BR></P>
</TD><TD style="margin-top:0px" valign=top width=106.8><P style="margin:0px" align=right><BR></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=307.2><P style="margin:0px; font-size:9pt">Shares outstanding at period end</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=96><P style="margin:0px; font-size:9pt" align=right>6,689,743</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px" align=center><BR></P>
</TD><TD style="margin-top:0px" valign=top width=106.8><P style="margin:0px; font-size:9pt" align=right>6,689,743</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=307.2><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=96><P style="margin:0px" align=right><BR></P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px" align=center><BR></P>
</TD><TD style="margin-top:0px" valign=top width=106.8><P style="margin:0px" align=right><BR></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=307.2><P style="margin:0px; font-size:9pt">Book value per share</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px; font-size:9pt">$</P>
</TD><TD style="margin-top:0px" valign=top width=96><P style="margin:0px; font-size:9pt" align=right>11.08</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px" align=center><BR></P>
</TD><TD style="margin-top:0px" valign=top width=106.8><P style="margin:0px; font-size:9pt" align=right>10.57</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=307.2><P style="margin:0px; font-size:9pt">Equity to assets ratio</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=96><P style="margin:0px; font-size:9pt" align=right>9.35%</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px" align=center><BR></P>
</TD><TD style="margin-top:0px" valign=top width=106.8><P style="margin:0px; font-size:9pt" align=right>9.30%</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=307.2><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=96><P style="margin:0px" align=right><BR></P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px" align=center><BR></P>
</TD><TD style="margin-top:0px" valign=top width=106.8><P style="margin:0px" align=right><BR></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=307.2><P style="margin:0px; font-size:9pt"><B>Assets Under Management</B></P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=96><P style="margin:0px" align=right><BR></P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px" align=center><BR></P>
</TD><TD style="margin-top:0px" valign=top width=106.8><P style="margin:0px" align=right><BR></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=307.2><P style="margin:0px; font-size:9pt">LCNB Corp. total assets</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px; font-size:9pt">$</P>
</TD><TD style="margin-top:0px" valign=top width=96><P style="margin:0px; font-size:9pt" align=right>792,950</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px" align=center><BR></P>
</TD><TD style="margin-top:0px" valign=top width=106.8><P style="margin:0px; font-size:9pt" align=right>760,134</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=307.2><P style="margin:0px; font-size:9pt">Trust and investments (fair value)</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=96><P style="margin:0px; font-size:9pt" align=right>227,951</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px" align=center><BR></P>
</TD><TD style="margin-top:0px" valign=top width=106.8><P style="margin:0px; font-size:9pt" align=right>223,545</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=307.2><P style="margin:0px; font-size:9pt">Mortgage loans serviced</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=96><P style="margin:0px; font-size:9pt" align=right>67,942</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px" align=center><BR></P>
</TD><TD style="margin-top:0px" valign=top width=106.8><P style="margin:0px; font-size:9pt" align=right>70,705</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=307.2><P style="margin:0px; font-size:9pt">Business cash management</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px" valign=top width=96><P style="margin:0px; font-size:9pt" align=right>10,933</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px" align=center><BR></P>
</TD><TD style="margin-top:0px" valign=top width=106.8><P style="margin:0px; font-size:9pt" align=right>9,591</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=307.2><P style="margin:0px; font-size:9pt">Brokerage accounts (fair value)</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px"><BR></P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=96><P style="margin:0px; font-size:9pt" align=right>86,731</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px" align=center><BR></P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=106.8><P style="margin:0px; font-size:9pt" align=right>82,385</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=307.2><P style="margin:0px; font-size:9pt">Total assets managed</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px; font-size:9pt">$</P>
</TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=top width=96><P style="margin:0px; font-size:9pt" align=right>1,186,507</P>
</TD><TD style="margin-top:0px" valign=top width=18><P style="margin:0px" align=center><BR></P>
</TD><TD style="margin-top:0px; border-bottom:3px double #000000" valign=top width=106.8><P style="margin:0px; font-size:9pt" align=right>1,146,360</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
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