PARENT COMPANY FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2018

Condensed financial information for LCNB Corp., parent company only, follows (in thousands):



Condensed Balance Sheets:
December 31,	2018		2017
Assets:
Cash on deposit with subsidiary	$	715	308
Investment securities available-for-sale, at fair value	816		919
Investment in subsidiaries	216,830		148,850
Other assets	624		194
Total assets	$	218,985	150,271

Liabilities	$	—	—

Shareholders' equity	218,985		150,271
Total liabilities and shareholders' equity	$	218,985	150,271



Condensed Statements of Income
Year ended December 31,	2018			2017	2016
Income:
Dividends from subsidiaries	$	10,383		6,800	7,300
Interest and dividends	35			36	38
Net gain on sales of securities	—			14	8
Other income	(66		)	—	—
Total income	10,352			6,850	7,346

Total expenses	1,668			1,290	1,014

Income before income tax expense/benefit and equity in undistributed income of subsidiaries	8,684			5,560	6,332
Income tax benefit	341			380	336
Equity in undistributed income of subsidiaries	5,820			7,032	5,814
Net income	$	14,845		12,972	12,482



Condensed Statements of Cash Flows
Year ended December 31,	2018			2017		2016
Cash flows from operating activities:
Net income	$	14,845		12,972		12,482
Adjustments for non-cash items -
Increase in undistributed income of subsidiaries	(5,820		)	(7,032	)	(5,814	)
Other, net	(383		)	84		126
Net cash flows provided by operating activities	8,642			6,024		6,794

Cash flows from investing activities:
Purchases of equity securities	(90		)	(54	)	(177	)
Proceeds from sales of equity securities	107			93		228
Investments in subsidiaries	—			(250	)	—
Cash paid for business acquisition, net of cash received	(268		)	—		—
Net cash flows provided by (used in) investing activities	(251		)	(211	)	51

Cash flows from financing activities:
Proceeds from issuance of common stock	416			360		379
Payments to repurchase common stock	(348		)	—		—
Repurchase of stock warrants	—			—		(1,545	)
Cash dividends paid on common stock	(8,124		)	(6,407	)	(6,375	)
Other	72			51		653
Net cash flows used in financing activities	(7,984		)	(5,996	)	(6,888	)
Net change in cash	407			(183	)	(43	)
Cash at beginning of year	308			491		534
Cash at end of year	$	715		308		491