##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended: SEPTEMBER 30, 2008
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 Commission file number: 0-22387
 DCB Financial Corp
  Ohio
    
    31-1469837(State or other jurisdiction of
    
    (I.R.S. Employer Identification Number)incorporation or organization)
 110 Riverbend Avenue, Lewis Center, Ohio 43035
   (Registrants telephone number)
 þ o
  Large accelerated filers o
    
    Accelerated filer þ
    
    Non-accelerated filer o
    
    Smaller reporting company o(Do not check if a smaller reporting company)
 o þ




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##### 



PagePART I  FINANCIAL INFORMATIONITEM 1  Financial Statements
    
    
    3Condensed Consolidated Balance Sheets
    
    
    3Condensed Consolidated Statements of Operations
    
    
    4Condensed Consolidated Statements of Comprehensive Income
    
    
    5Condensed Consolidated Statements of Cash Flows
    
    
    6Notes to the Condensed Consolidated Financial Statements
    
    
    7ITEM 1A  Risk Factors
    
    
    17ITEM 2 - Managements Discussion and Analysis of Financial Condition
  and Results of Operations
    
    
    19ITEM 3 - Quantitative and Qualitative Disclosures About Market Risk
    
    
    26ITEM 4  Controls and Procedures
    
    
    27PART II  OTHER INFORMATION
    
    
    28SIGNATURES
    
    
    30EX-31.1EX-31.2EX-32.1EX-32.2
  2.




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Financial Statements
 September 30,
    
    
    December 31,2008
    
    
    2007(unaudited)ASSETSCash and due from financial institutions
    
    $
    16,151
    
    
    $
    15,588Federal funds sold
    
    
    20,470
    
    
    
    16,480Total cash and cash equivalents
    
    
    36,621
    
    
    
    32,068Securities available for sale at fair value
    
    
    103,613
    
    
    
    89,009Securities held to maturity at amortized cost
    
    
    8,002
    
    
    
    Total securities
    
    
    111,615
    
    
    
    89,009Loans held for sale
    
    
    225
    
    
    
    1,078Loans
    
    
    516,245
    
    
    
    520,493Less allowance for loan losses
    
    
    (8,902
    )
    
    
    (8,298
    )Net loans
    
    
    507,343
    
    
    
    512,195Real estate owned
    
    
    2,287
    
    
    
    1,406Investment in FHLB stock
    
    
    3,776
    
    
    
    3,670Premises and equipment, net
    
    
    15,437
    
    
    
    14,178Investment in unconsolidated affiliates
    
    
    1,424
    
    
    
    1,270Bank owned life insurance
    
    
    15,458
    
    
    
    14,963Accrued interest receivable and other assets
    
    
    11,725
    
    
    
    10,949Total assets
    
    $
    705,911
    
    
    $
    680,786LIABILITIESDepositsNoninterest-bearing
    
    $
    51,392
    
    
    $
    53,112Interest-bearing
    
    
    503,252
    
    
    
    457,762Total deposits
    
    
    554,644
    
    
    
    510,874Federal funds purchased and other short-term borrowings
    
    
    5,317
    
    
    
    16,596Federal Home Loan Bank advances
    
    
    85,816
    
    
    
    93,486Accrued interest payable and other liabilities
    
    
    2,978
    
    
    
    2,762Total liabilities
    
    
    648,755
    
    
    
    623,718SHAREHOLDERS EQUITYCommon stock, no par value, 7,500,000 shares authorized,
  4,273,750 issued
    
    
    3,780
    
    
    
    3,780Retained earnings
    
    
    67,211
    
    
    
    66,690Treasury stock, at cost, 556,365 shares
    
    
    (13,489
    )
    
    
    (13,489
    )Accumulated other comprehensive income (loss)
    
    
    (346
    )
    
    
    87Total shareholders equity
    
    
    57,156
    
    
    
    57,068Total liabilities and shareholders equity
    
    $
    705,911
    
    
    $
    680,786
  3.




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Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2008
    
    
    2007
    
    
    2008
    
    
    2007Interest and dividend incomeLoans
    
    $
    8,113
    
    
    $
    9,765
    
    
    $
    25,233
    
    
    $
    29,763Taxable securities
    
    
    1,021
    
    
    
    891
    
    
    
    2,915
    
    
    
    2,655Tax-exempt securities
    
    
    260
    
    
    
    224
    
    
    
    740
    
    
    
    678Federal funds sold and other
    
    
    131
    
    
    
    79
    
    
    
    564
    
    
    
    274Total interest income
    
    
    9,525
    
    
    
    10,959
    
    
    
    29,452
    
    
    
    33,370Interest expenseDeposits
    
    
    2,995
    
    
    
    4,500
    
    
    
    9,685
    
    
    
    13,972Borrowings
    
    
    1,009
    
    
    
    1,045
    
    
    
    3,115
    
    
    
    3,057Total interest expense
    
    
    4,004
    
    
    
    5,545
    
    
    
    12,800
    
    
    
    17,029Net interest income
    
    
    5,521
    
    
    
    5,414
    
    
    
    16,652
    
    
    
    16,341Provision for loan losses
    
    
    2,800
    
    
    
    1,100
    
    
    
    4,000
    
    
    
    2,784Net interest income after provision for
loan losses
    
    
    2,721
    
    
    
    4,314
    
    
    
    12,652
    
    
    
    13,557Noninterest incomeService charges on deposit accounts
    
    
    700
    
    
    
    674
    
    
    
    1,974
    
    
    
    1,983Trust department income
    
    
    231
    
    
    
    241
    
    
    
    743
    
    
    
    690Net gain on sale of securities
    
    
    
    
    
    
    
    
    
    
    278
    
    
    
    Net loss on sale of assets
    
    
    (619
    )
    
    
    (123
    )
    
    
    (735
    )
    
    
    (195
    )Gains on sale of loans
    
    
    42
    
    
    
    63
    
    
    
    179
    
    
    
    270Treasury management fees
    
    
    149
    
    
    
    148
    
    
    
    400
    
    
    
    405Data processing servicing fees
    
    
    138
    
    
    
    103
    
    
    
    499
    
    
    
    308Earnings on bank owned life insurance
    
    
    165
    
    
    
    150
    
    
    
    495
    
    
    
    402Other
    
    
    59
    
    
    
    456
    
    
    
    326
    
    
    
    774865
    
    
    
    1,712
    
    
    
    4,159
    
    
    
    4,637Noninterest expenseSalaries and other employee benefits
    
    
    2,554
    
    
    
    2,455
    
    
    
    7,664
    
    
    
    7,196Occupancy and equipment
    
    
    1,103
    
    
    
    934
    
    
    
    3,168
    
    
    
    2,637Professional services
    
    
    421
    
    
    
    107
    
    
    
    830
    
    
    
    335Advertising
    
    
    112
    
    
    
    105
    
    
    
    320
    
    
    
    308Postage, freight and courier
    
    
    75
    
    
    
    62
    
    
    
    219
    
    
    
    205Supplies
    
    
    94
    
    
    
    54
    
    
    
    245
    
    
    
    214State franchise taxes
    
    
    150
    
    
    
    106
    
    
    
    341
    
    
    
    395Other
    
    
    943
    
    
    
    688
    
    
    
    2,462
    
    
    
    1,9215,452
    
    
    
    4,511
    
    
    
    15,249
    
    
    
    13,211Income (loss) before income taxes
    
    
    (1,866
    )
    
    
    1,515
    
    
    
    1,562
    
    
    
    4,983Federal income tax expense (benefit)
    
    
    (1,654
    )
    
    
    432
    
    
    
    (748
    )
    
    
    1,193Net income (loss)
    
    $
    (212
    )
    
    $
    1,083
    
    
    $
    2,310
    
    
    $
    3,790Basic and diluted earnings (loss)
per common share
    
    $
    (0.06
    )
    
    $
    0.29
    
    
    $
    0.62
    
    
    $
    1.01Dividends per share
    
    $
    0.16
    
    
    $
    0.15
    
    
    $
    0.48
    
    
    $
    0.44
  4.




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Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2008
    
    
    2007
    
    
    2008
    
    
    2007Net income (loss)
    
    $
    (212
    )
    
    $
    1,083
    
    
    $
    2,310
    
    
    $
    3,790Reclassification adjustment for realized
gains, net of tax of $95
    
    
    
    
    
    
    
    
    
    
    (183
    )
    
    
    Unrealized gains (losses) on securities
available for sale, net of taxes (benefits)
of $292, $249, ($129) and $72
for the respective periods
    
    
    566
    
    
    
    484
    
    
    
    (250
    )
    
    
    139Comprehensive income
    
    $
    354
    
    
    $
    1,567
    
    
    $
    1,877
    
    
    $
    3,929Accumulated other comprehensive loss
    
    $
    (346
    )
    
    $
    (208
    )
    
    $
    (346
    )
    
    $
    (208
    )
  5.




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Nine Months EndedSeptember 30,2008
    
    
    2007Cash flows provided by operating activities
    
    $
    6,212
    
    
    $
    54Cash flows provided by (used in) investing activitiesSecurities available for salePurchases
    
    
    (53,436
    )
    
    
    (16,693
    )Maturities, principal payments and calls
    
    
    30,161
    
    
    
    14,172Net change in loans
    
    
    1,031
    
    
    
    22,395Premises and equipment expenditures
    
    
    (2,447
    )
    
    
    (3,690
    )Net cash flows provided by (used in) investing activities
    
    
    (24,691
    )
    
    
    16,184Cash flows provided by (used in) financing activitiesNet change in deposits
    
    
    43,770
    
    
    
    (8,314
    )Net change in federal funds purchased and other short-term borrowings
    
    
    (11,279
    )
    
    
    12,324Repayment of Federal Home Loan Bank advances
    
    
    (7,670
    )
    
    
    (6,489
    )Purchase of treasury shares, net
    
    
    
    
    
    
    (2,349
    )Cash dividends paid
    
    
    (1,789
    )
    
    
    (1,634
    )Net cash provided by (used in) financing activities
    
    
    23,032
    
    
    
    (6,462
    )Net change in cash and cash equivalents
    
    
    4,553
    
    
    
    9,776Cash and cash equivalents at beginning of period
    
    
    32,068
    
    
    
    15,894Cash and cash equivalents at end of period
    
    $
    36,621
    
    
    $
    25,670Supplemental disclosures of cash flow information:Cash paid during the period forInterest on deposits and borrowings
    
    $
    12,657
    
    
    $
    16,858Income taxes
    
    $
    1,145
    
    
    $
    1,850Supplemental disclosure of non-cash investing and financing activities:Unrealized gains (losses) on securities designated as available
for sale, net of tax benefits
    
    $
    (250
    )
    
    $
    139Transfers from loans to real estate owned
    
    $
    881
    
    
    $
    857Loans originated upon sale of real estate owned
    
    $
    190
    
    
    $
    Cash dividends declared but unpaid
    
    $
    595
    
    
    $
    560Transfer of securities from available-for-sale to the
held to maturity classification
    
    $
    8,002
    
    
    $
    
  6.




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NOTE 1  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
     Earnings per share
  Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2008
    
    
    2007
    
    
    2008
    
    
    2007Weighted-average common
shares outstanding (basic)
    
    
    3,717,385
    
    
    
    3,730,180
    
    
    
    3,717,385
    
    
    
    3,750,853Dilutive effect of assumed
exercise of stock options
    
    
    
    
    
    
    1,226
    
    
    
    
    
    
    
    5,863Weighted-average common
shares outstanding (diluted)
    
    
    3,717,385
    
    
    
    3,731,406
    
    
    
    3,717,385
    
    
    
    3,756,716
  7.




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Stock option plan
     8.




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Nine Months EndedSeptember 30,2008WEIGHTEDWEIGHTED
    
    
    AVERAGE REMAININGAVERAGE EXERCISE
    
    
    CONTRACTUALSHARES
    
    
    PRICE
    
    
    LIFEOutstanding at beginning of period
    
    
    108,051
    
    
    $
    25.80
    
    
    8.9 yearsGranted
    
    
    57,643
    
    
    
    16.90
    
    
    9.8 yearsForfeited
    
    
    (5,789
    )
    
    
    23.05Outstanding at end of period
    
    
    159,905
    
    
    $
    22.92
    
    
    9.2 yearsOptions exercisable at period end
    
    
    39,593
    
    
    $
    26.03Weighted-average fair value of options
granted during the period
    
    
    
    
    
    $
    1.01
 Year EndedDecember 31,2007WEIGHTEDWEIGHTED
    
    
    AVERAGE REMAININGAVERAGE EXERCISE
    
    
    CONTRACTUALSHARES
    
    
    PRICE
    
    
    LIFEOutstanding at beginning of year
    
    
    70,040
    
    
    $
    27.19
    
    
    8.0 yearsGranted
    
    
    44,214
    
    
    
    23.43
    
    
    9.8 yearsExercised
    
    
    (158
    )
    
    
    28.69Forfeited
    
    
    (6,045
    )
    
    
    26.20Outstanding at end of year
    
    
    108,051
    
    
    $
    25.80
    
    
    8.9 yearsOptions exercisable at year end
    
    
    21,553
    
    
    $
    26.13Weighted-average fair value of options
granted during the year
    
    
    
    
    
    $
    2.57
 9.




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NUMBER OUTSTANDING
    
    RANGE OF EXERCISE PRICES104,220
    
    
    $
    23.00 - $30.7055,685
    
    
    $
    16.90
 Recent Accounting Standards
     10.




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,
  
   Application of Critical Accounting Policies
  11.




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NOTE 2  SECURITIES
  Gross
    
    
    Gross
    
    
    EstimatedAmortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    FairCost
    
    
    Gains
    
    
    Losses
    
    
    ValueSeptember 30, 2008U.S. Government and agency
obligations
    
    $
    30,506
    
    
    $
    63
    
    
    $
    (347
    )
    
    $
    30,222State and municipal obligations
    
    
    27,460
    
    
    
    158
    
    
    
    (282
    )
    
    
    27,336Mortgage-backed securities
    
    
    46,115
    
    
    
    176
    
    
    
    (321
    )
    
    
    45,970Total debt securities
    
    
    104,081
    
    
    
    397
    
    
    
    (950
    )
    
    
    103,528Other securities
    
    
    57
    
    
    
    43
    
    
    
    (15
    )
    
    
    85Total
    
    $
    104,138
    
    
    $
    440
    
    
    $
    (965
    )
    
    $
    103,613
  EstimatedAmortized
    
    FairCost
    
    ValueSeptember 30, 2008Corporate bonds
    
    $
    8,002
    
    
    $
    8,002
  12.




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(Less than 12 months)
    
    
    (12 months or longer)Estimated
    
    
    Gross
    
    
    
    
    
    
    Estimated
    
    
    Gross
    
    
    
    
    
    
    Estimated
    
    
    TotalDescription of
    
    Number of
    
    
    Fair
    
    
    Unrealized
    
    
    Number of
    
    
    Fair
    
    
    Unrealized
    
    
    Number of
    
    
    Fair
    
    
    UnrealizedSecurities
    
    investments
    
    
    value
    
    
    losses
    
    
    investments
    
    
    value
    
    
    losses
    
    
    investments
    
    
    value
    
    
    lossesU.S. Government and
agency obligations
    
    
    23
    
    
    $
    21,618
    
    
    $
    (347
    )
    
    
    
    
    
    $
    
    
    
    $
    
    
    
    
    23
    
    
    $
    21,618
    
    
    $
    (347
    )State and municipal
obligations
    
    
    32
    
    
    
    11,338
    
    
    
    (282
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    32
    
    
    
    11,338
    
    
    
    (282
    )Mortgage-backed and
other securities
    
    
    72
    
    
    
    23,831
    
    
    
    (289
    )
    
    
    21
    
    
    
    762
    
    
    
    (47
    )
    
    
    93
    
    
    
    24,593
    
    
    
    (336
    )Total temporarily
impaired securities
    
    
    127
    
    
    $
    56,787
    
    
    $
    (918
    )
    
    
    21
    
    
    $
    762
    
    
    $
    (47
    )
    
    
    148
    
    
    $
    57,549
    
    
    $
    (965
    )
     Amortized
    
    
    FairCost
    
    
    ValueDue in one year or less
    
    $
    1,430
    
    
    $
    1,442Due from one to five years
    
    
    14,829
    
    
    
    14,843Due from five to ten years
    
    
    25,498
    
    
    
    25,362Due after ten years
    
    
    24,211
    
    
    
    23,913Mortgage-backed and related securities
    
    
    46,115
    
    
    
    45,970Total debt securities
    
    
    112,083
    
    
    
    111,530Other securities
    
    
    57
    
    
    
    85Total
    
    $
    112,140
    
    
    $
    111,615
 13.




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NOTE 3  LOANS
  September 30,2008Commercial and industrial
    
    $
    43,558Commercial real estate
    
    
    198,684Residential real estate and home equity
    
    
    199,353Real estate construction and land development
    
    
    46,766Consumer and credit card
    
    
    27,677516,038Add: Net deferred loan origination costs
    
    
    207Total loans receivable
    
    $
    516,245
 NOTE 4  ALLOWANCE FOR LOAN LOSSES
  Three months ended
    
    
    Nine months endedSeptember 30,
    
    
    September 30,2008
    
    
    2007
    
    
    2008
    
    
    2007Balance at beginning of period
    
    $
    7,684
    
    
    $
    5,324
    
    
    $
    8,298
    
    
    $
    5,442Provision for loan losses
    
    
    2,800
    
    
    
    1,100
    
    
    
    4,000
    
    
    
    2,784Loans charged off
    
    
    (1,698
    )
    
    
    (475
    )
    
    
    (3,657
    )
    
    
    (2,486
    )Recoveries
    
    
    116
    
    
    
    89
    
    
    
    261
    
    
    
    298Balance at end of period
    
    $
    8,902
    
    
    $
    6,038
    
    
    $
    8,902
    
    
    $
    6,038
 14.




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September 30,
    
    
    December 31,2008
    
    
    2007Loans past due 90 days or more and still accruing
    
    $
    717
    
    
    $
    2,740Nonaccrual loans
    
    
    11,106
    
    
    
    10,360Total
    
    $
    11,823
    
    
    $
    13,100Impaired loans (most of which are included in nonperforming loans above) were as follows:Period-end loans with no allocated allowance for loan losses
    
    $
    
    
    
    $
    538Period-end loans with allocated allowance for loan losses
    
    
    11,106
    
    
    
    9,800Total
    
    $
    11,106
    
    
    $
    10,338Amount of the allowance for loan losses allocated to unconfirmed
losses on impaired loans
    
    $
    4,242
    
    
    $
    2,114Average of impaired loans during the period
    
    $
    11,215
    
    
    $
    7,907
 NOTE 5  FAIR VALUE MEASUREMENTS
 Fair Value Measurements
   Level 1
 Level 2
 Level 3
 15.




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Securities
   Fair Value Measurements UsingQuoted Pricesin Active
    
    SignificantMarkets for
    
    Other
    
    SignificantIdentical
    
    Observable
    
    UnobservableAssets
    
    Inputs
    
    InputsFair Value
    
    (Level 1)
    
    (Level 2)
    
    (Level 3)Available for sale securities
    
    $
    103,613
    
    
    $
    2,747
    
    
    $
    100,866
    
    
    $
    
 Impaired loans
   Fair Value Measurements UsingQuoted Pricesin Active
    
    SignificantMarkets for
    
    Other
    
    SignificantIdentical
    
    Observable
    
    UnobservableAssets
    
    Inputs
    
    InputsFair Value
    
    (Level 1)
    
    (Level 2)
    
    (Level 3)Impaired loans
    
    $
    857
    
    
    $
    
    
    
    $
    
    
    
    $
    857
 16.




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NOTE 6  CHANGE IN ACCOUNTING ESTIMATE
  
 Risk Factors
  The current economic environment.
  Competition from other financial institutions in our markets.
  The ability to extend credit and assessing the allowance for loan losses.
   17.




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Asset and liability management and market risk.
   Ability to pay cash dividends is limited.
  Legislative or regulatory changes or actions could adversely impact the financial services
industry.
   18.




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##### Table of Contents



Risk Mitigation.
   
 Managements Discussion and Analysis of Financial Condition and Results of Operations
 INTRODUCTION
  FORWARD-LOOKING STATEMENTS
  19.




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##### Table of Contents



ANALYSIS OF FINANCIAL CONDITION
        20.




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##### Table of Contents



COMPARISON OF RESULTS OF OPERATIONS FOR THE THREE MONTHS
ENDED SEPTEMBER 30, 2008 AND SEPTEMBER 30, 2007
 Net Income.
  Net Interest Income.
 
  Provision and Allowance for Loan Losses.
 21.




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##### Table of Contents



Noninterest Income.
 Noninterest Expense.
 Income Taxes.
    22.




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##### Table of Contents



COMPARISON OF RESULTS OF OPERATIONS FOR THE NINE MONTHS
ENDED SEPTEMBER 30, 2008 AND SEPTEMBER 30, 2007
 Net Income.
  Net Interest Income.
  Provision and Allowance for Loan Losses.
  Noninterest Income.
 23.




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##### Table of Contents



Noninterest Expense.
 Income Taxes.
  LIQUIDITY
    CAPITAL RESOURCES
   24.




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##### Table of Contents



PAYMENT DUE BY YEARCONCTRACTUAL
    
    
    
    
    
    Less than 1
    
    
    
    
    
    
    
    
    
    
    More thanOBLIGATIONS
    
    Total
    
    
    year
    
    
    1-3 years
    
    
    3-5 years
    
    
    5 yearsFHLB advances
    
    $
    85,816
    
    
    $
    1,386
    
    
    $
    4,329
    
    
    $
    29,500
    
    
    $
    50,601Federal funds purchased and
other
short-term borrowings
    
    
    5,317
    
    
    
    5,317
    
    
    
    
    
    
    
    
    
    
    
    Operating lease obligations
    
    
    6,000
    
    
    
    211
    
    
    
    1,402
    
    
    
    1,680
    
    
    
    2,707Loan and line of credit
commitments
    
    
    84,169
    
    
    
    84,169
    
    
    
    
    
    
    
    
    
    
    
    Total Contractual Obligations
    
    $
    181,302
    
    
    $
    91,083
    
    
    $
    5,731
    
    
    $
    31,180
    
    
    $
    53,308
 25.




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##### Table of Contents



Quantitative and Qualitative Disclosure About Market Risk
 ASSET AND LIABILITY MANAGEMENT AND MARKET RISK
      26.




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##### Table of Contents



Controls and Procedures
   27.




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##### Table of Contents



ISSUER PURCHASES OF EQUITY SECURITIES
 (d)(c)
    
    Maximum NumberTotal Number of
    
    (or Approximate(a)
    
    
    
    
    
    Shares (or Units)
    
    Dollar Value) ofTotal Number
    
    (b)
    
    Purchased as Part
    
    Shares (or Units) thatof Shares (or
    
    Average Price
    
    of Publicly
    
    May Yet BeUnits)
    
    Paid per Share
    
    Announced Plans
    
    Purchased Under thePeriod
    
    Purchased
    
    (or Unit)
    
    or Programs(1)
    
    Plans or ProgramsMonth #l
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7/1/2008 to
7/31/2008Month #2
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8/1/2008 to
8/31/2008Month #3
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    9/1/2008 to
9/30/2008Total
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    184,907
 
 (1)
    
    On August 16, 2007, the Corporation announced a repurchase program which authorizes the
repurchase of up to 200,000 of its common shares over a two year period commencing August
15, 2007.   28.




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##### Table of Contents



Exhibit No.
    
    Exhibit3.1
    
    Amended and Restated Articles of Incorporation of DCB Financial Corp,
incorporated by reference to the Corporations Report on Form 10-Q filed with the
Commission on November 14, 2003.3.2
    
    Amended and Restated Articles of Incorporation of DCB Financial Corp,
incorporated by reference to the Corporations Report on Form 10-Q filed with the
Commission on November 14, 2003.31.1
    
    Certification pursuant to section 302 of the Sarbanes-Oxley Act of 200231.2
    
    Certification pursuant to section 302 of the Sarbanes-Oxley Act of 200232.1
    
    Certification pursuant to 18 U.S.C. 1350, as enacted pursuant to
section 906 of the Sarbanes-Oxley Act of 200232.2
    
    Certification pursuant to 18 U.S.C. 1350, as enacted pursuant to
section 906 of the Sarbanes-Oxley Act of 2002
 29




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##### Table of Contents



DCB FINANCIAL CORP
(Registrant)Date:  November 10, 2008
    /s/ Jeffrey T. BentonJeffrey T. BentonPresident and Chief Executive OfficerDate:  November 10, 2008
    /s/ John A. UstaszewskiJohn A. UstaszewskiSenior Vice President and Chief Financial Officer 30




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##### Table of Contents



EXHIBITNUMBER
    
    DESCRIPTION3.1
    
    Amended and Restated Articles of Incorporation of DCB Financial Corp, incorporated by reference
to the
Corporations Report on Form 10-Q filed with the Commission on November 14, 2003.3.2
    
    Amended and Restated Articles of Incorporation of DCB Financial Corp, incorporated by reference to
the
Corporations Report on Form 10-Q filed with the Commission on November 14, 2003.31.1
    
    Certification of Chief Executive Officer pursuant to section 302 of the Sarbanes-Oxley Act of 2002.31.2
    
    Certification of Chief Financial Officer pursuant to section 302 of the Sarbanes-Oxley Act of 2002.32.1
    
    Certification pursuant to 18 U.S.C. 1350, as enacted Pursuant to section 906 of the
Sarbanes-Oxley Act
of 2002.32.2
    
    Certification pursuant to 18 U.S.C. 1350, as enacted Pursuant to section 906 of the
Sarbanes-Oxley Act
of 2002.
 31