Acquisitions (Tables)

9 Months Ended

Sep. 30, 2018

Sep. 30, 2017

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

The merger with CFB 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. The estimated fair values reported in LCNB's Form 10-Q for the quarterly period ended June 30, 2018 were preliminary, as the pricing study had not been finalized at that time. The following table summarizes the preliminary balances at June 30, 2018, revisions to the preliminary balances, and the balances at September 30, 2018 (in thousands):



	June 30, 2018		Fair Value Adjustments			September 30, 2018
Consideration Paid:
Common shares issued (3,253,060 shares issued at $19.55 per share)	$	63,598	$	—		$	63,598
Cash paid to cancel share based payment awards	783		—			783
	64,381		—			64,381

Identifiable Assets Acquired:
Cash and cash equivalents	13,679		—			13,679
Interest-bearing time deposits	10,350		—			10,350
Federal Home Loan Bank stock	1,207		—			1,207
Loans, net	282,748		(615		)	282,133
Loans held for sale, net	1,819		—			1,819
Premises and equipment	102		—			102
Core deposit intangible	2,089		88			2,177
Other real estate owned	35		—			35
Deferred income taxes	—		352			352
Other assets	2,022		(716		)	1,306
Total identifiable assets acquired	314,051		(891		)	313,160

Liabilities Assumed:
Deposits	245,036		(606		)	244,430
Short-term borrowings	10,000		—			10,000
Long-term debt	22,920		23			22,943
Deferred income taxes	200		(200		)	—
Other liabilities	491		19			510
Total liabilities assumed	278,647		(764		)	277,883

Total Identifiable Net Assets Acquired	35,404		(127		)	35,277

Goodwill resulting from merger	$	28,977	$	127		$	29,104

Business Acquisition Financial Contribution By Acquired Company [Table Text Block]

The amount of CFB's revenue (net interest income plus non-interest income) and net income, excluding merger-related expenses, included in LCNB's consolidated condensed statement of income for the three and nine months ended September 30, 2018 were as follows (in thousands):

Business Acquisition, Pro Forma Information [Table Text Block]

The following table presents unaudited pro forma information as if the merger with CFB had occurred on January 1, 2017 (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 CFB occurred in 2017. In particular, expected operational cost savings are not reflected in the pro forma amounts.



	Three Months Ended September 30,			Nine Months Ended September 30,
	2018		2017	2018	2017
Total revenue	$	16,024	15,808	47,978	46,978
Net income	4,478		3,852	12,514	11,762
Basic earnings per common share	0.29		0.29	0.88	0.89
Diluted earnings per common share	0.29		0.29	0.88	0.89

Three Months

Nine Months

Total revenue

Net income