Ohio | 0-26121 | 31-1626393 |
(State or other jurisdiction of incorporation) | (Commission File No.) | (IRS Employer Identification Number) |
2 North Broadway, Lebanon, Ohio | 45036 |
(Address of principal executive offices) | (Zip Code) |
99.1 | Earnings Press Release Dated July 21, 2014 |
99.2 | Unaudited Financial Highlights |
LCNB CORP. | ||||||
Date: July 21, 2014 | By: /s/ Robert C. Haines II | |||||
Robert C. Haines II Chief Financial Officer | ||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
6/30/2014 | 3/31/2014 | 12/31/2013 | 9/30/2013 | 6/30/2013 | 6/30/2014 | 6/30/2013 | |||||||||||||||
Condensed Income Statement | |||||||||||||||||||||
Interest income | $ | 9,926 | 9,278 | 8,566 | 8,450 | 8,405 | 19,204 | 16,481 | |||||||||||||
Interest expense | 920 | 915 | 927 | 995 | 1,045 | 1,835 | 2,143 | ||||||||||||||
Net interest income | 9,006 | 8,363 | 7,639 | 7,455 | 7,360 | 17,369 | 14,338 | ||||||||||||||
Provision for loan losses | 255 | 81 | 219 | 178 | 42 | 336 | 191 | ||||||||||||||
Net interest income after provision | 8,751 | 8,282 | 7,420 | 7,277 | 7,318 | 17,033 | 14,147 | ||||||||||||||
Non-interest income | 2,301 | 2,077 | 2,358 | 2,047 | 2,178 | 4,378 | 4,685 | ||||||||||||||
Non-interest expense | 7,600 | 8,672 | 6,634 | 6,163 | 6,324 | 16,272 | 13,415 | ||||||||||||||
Income before income taxes | 3,452 | 1,687 | 3,144 | 3,161 | 3,172 | 5,139 | 5,417 | ||||||||||||||
Provision for income taxes | 841 | 364 | 797 | 804 | 824 | 1,205 | 1,341 | ||||||||||||||
Net income | $ | 2,611 | 1,323 | 2,347 | 2,357 | 2,348 | 3,934 | 4,076 | |||||||||||||
Per Share Data | |||||||||||||||||||||
Dividends per share | $ | 0.16 | 0.16 | 0.16 | 0.16 | 0.16 | 0.32 | 0.32 | |||||||||||||
Basic earnings per share | $ | 0.28 | 0.14 | 0.27 | 0.31 | 0.31 | 0.42 | 0.54 | |||||||||||||
Diluted earnings per share | $ | 0.28 | 0.14 | 0.27 | 0.30 | 0.30 | 0.42 | 0.53 | |||||||||||||
Book value per share | $ | 13.18 | 12.89 | 12.80 | 12.07 | 11.82 | 13.18 | 11.82 | |||||||||||||
Tangible book value per share | $ | 9.71 | 9.44 | 11.02 | 9.93 | 9.64 | 9.71 | 9.64 | |||||||||||||
Average basic shares outstanding | 9,293,382 | 9,288,400 | 8,623,134 | 7,636,098 | 7,627,900 | 9,290,905 | 7,570,817 | ||||||||||||||
Average diluted shares outstanding | 9,402,343 | 9,413,049 | 8,755,416 | 7,787,098 | 7,759,438 | 9,407,964 | 7,686,890 | ||||||||||||||
Shares outstanding at period end | 9,298,270 | 9,292,226 | 9,287,536 | 7,640,163 | 7,633,679 | 9,298,270 | 7,633,679 | ||||||||||||||
Selected Financial Ratios | |||||||||||||||||||||
Return on average assets | 0.91 | % | 0.50 | % | 0.98 | % | 0.99 | % | 0.99 | % | 0.72 | % | 0.88 | % | |||||||
Return on average equity | 8.60 | % | 4.47 | % | 8.48 | % | 10.27 | % | 9.91 | % | 6.57 | % | 8.75 | % | |||||||
Dividend payout ratio | 57.14 | % | 114.29 | % | 59.26 | % | 51.61 | % | 51.61 | % | 76.19 | % | 59.26 | % | |||||||
Net interest margin (tax equivalent) | 3.59 | % | 3.66 | % | 3.63 | % | 3.57 | % | 3.54 | % | 3.62 | % | 3.54 | % | |||||||
Efficiency ratio | 67.21 | % | 83.07 | % | 66.36 | % | 64.86 | % | 66.30 | % | 74.82 | % | 70.52 | % | |||||||
Selected Balance Sheet Items | |||||||||||||||||||||
Investment securities and stock | $ | 357,567 | 331,771 | 279,021 | 296,819 | 304,934 | |||||||||||||||
Loans | 691,719 | 685,196 | 574,354 | 566,109 | 556,314 | ||||||||||||||||
Less allowance for loan losses | 3,394 | 3,370 | 3,588 | 3,423 | 3,426 | ||||||||||||||||
Net loans | 688,325 | 681,826 | 570,766 | 562,686 | 552,888 | ||||||||||||||||
Total assets | 1,151,109 | 1,133,508 | 932,338 | 942,349 | 945,510 | ||||||||||||||||
Total deposits | 986,824 | 984,514 | 785,761 | 808,335 | 800,813 | ||||||||||||||||
Short-term borrowings | 23,523 | 11,215 | 8,655 | 22,811 | 36,272 | ||||||||||||||||
Long-term debt | 11,506 | 11,580 | 12,102 | 12,446 | 12,788 | ||||||||||||||||
Total shareholders’ equity | 122,584 | 119,761 | 118,873 | 92,215 | 90,229 | ||||||||||||||||
Tangible common equity (TCE) | 89,800 | 87,017 | 101,893 | 75,353 | 73,065 | ||||||||||||||||
Tangible common assets (TCA) | 1,118,325 | 1,100,764 | 915,358 | 925,487 | 928,346 | ||||||||||||||||
TCE/TA | 8.03 | % | 7.91 | % | 11.13 | % | 8.14 | % | 7.87 | % | |||||||||||
Loans to deposit ratio | 70.10 | % | 69.60 | % | 73.10 | % | 70.03 | % | 69.47 | % | |||||||||||
Equity to assets ratio | 10.65 | % | 10.57 | % | 12.75 | % | 9.79 | % | 9.54 | % | |||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
6/30/2014 | 3/31/2014 | 12/31/2013 | 9/30/2013 | 6/30/2013 | 6/30/2014 | 6/30/2013 | |||||||||||||||
Asset Quality | |||||||||||||||||||||
Net charge-offs | 232 | 299 | 54 | 181 | 20 | ||||||||||||||||
Other real estate owned | 1,906 | 1,799 | 1,463 | 1,561 | 1,530 | ||||||||||||||||
Non-accrual loans | 6,243 | 5,374 | 2,961 | 2,828 | 3,026 | ||||||||||||||||
Loans past due 90 days or more and still accruing | 130 | 825 | 250 | 29 | 113 | ||||||||||||||||
Total nonperforming loans | 6,373 | 6,199 | 3,211 | 2,857 | 3,139 | ||||||||||||||||
Net charge-offs to average loans | 0.14 | % | 0.19 | % | 0.04 | % | 0.13 | % | 0.01 | % | |||||||||||
Allowance for loan losses to total loans | 0.49 | % | 0.49 | % | 0.62 | % | 0.60 | % | 0.62 | % | |||||||||||
Nonperforming loans to total loans | 0.92 | % | 0.90 | % | 0.56 | % | 0.50 | % | 0.56 | % | |||||||||||
Nonperforming assets to total assets | 0.72 | % | 0.71 | % | 0.50 | % | 0.47 | % | 0.49 | % | |||||||||||
Non-GAAP Financial Measures | |||||||||||||||||||||
Net income | $ | 2,611 | 1,323 | 2,347 | 2,357 | 2,348 | 3,934 | 4,076 | |||||||||||||
Less (add) net gain (loss) on sales of securities, net of tax | 0 | (3 | ) | 203 | 38 | 71 | (3 | ) | 459 | ||||||||||||
Add merger-related expenses, net of tax | 46 | 853 | 71 | 0 | 180 | 899 | 909 | ||||||||||||||
Core net income | $ | 2,657 | 2,179 | 2,215 | 2,319 | 2,457 | 4,836 | 4,526 | |||||||||||||
Basic core earnings per share | $ | 0.29 | 0.23 | 0.26 | 0.30 | 0.32 | 0.52 | 0.60 | |||||||||||||
Diluted core earnings per share | $ | 0.28 | 0.23 | 0.25 | 0.30 | 0.32 | 0.51 | 0.59 | |||||||||||||
Adjusted return on average assets | 0.93 | % | 0.82 | % | 0.92 | % | 0.97 | % | 1.03 | % | 0.88 | % | 0.97 | % | |||||||
Adjusted return on average equity | 8.67 | % | 7.32 | % | 7.97 | % | 10.06 | % | 10.33 | % | 8.02 | % | 9.67 | % | |||||||
Core efficiency ratio | 66.60 | % | 70.66 | % | 67.36 | % | 65.26 | % | 64.18 | % | 68.55 | % | 65.96 | % | |||||||
June 30, 2014 | December 31, 2013 | ||||||
(Unaudited) | |||||||
ASSETS: | |||||||
Cash and due from banks | $ | 18,771 | 10,410 | ||||
Interest-bearing demand deposits | 110 | 4,278 | |||||
Total cash and cash equivalents | 18,881 | 14,688 | |||||
Investment securities: | |||||||
Available-for-sale, at fair value | 327,740 | 258,241 | |||||
Held-to-maturity, at cost | 23,843 | 16,323 | |||||
Federal Reserve Bank stock, at cost | 2,346 | 1,603 | |||||
Federal Home Loan Bank stock, at cost | 3,638 | 2,854 | |||||
Loans, net | 688,325 | 570,766 | |||||
Premises and equipment, net | 21,230 | 19,897 | |||||
Goodwill | 27,638 | 14,186 | |||||
Bank owned life insurance | 21,607 | 21,280 | |||||
Other assets | 15,861 | 12,500 | |||||
TOTAL ASSETS | $ | 1,151,109 | 932,338 | ||||
LIABILITIES: | |||||||
Deposits: | |||||||
Noninterest-bearing | $ | 201,928 | 164,912 | ||||
Interest-bearing | 784,896 | 620,849 | |||||
Total deposits | 986,824 | 785,761 | |||||
Short-term borrowings | 23,523 | 8,655 | |||||
Long-term debt | 11,506 | 12,102 | |||||
Accrued interest and other liabilities | 6,672 | 6,947 | |||||
TOTAL LIABILITIES | 1,028,525 | 813,465 | |||||
SHAREHOLDERS' EQUITY: | |||||||
Preferred shares – no par value, authorized 1,000,000 shares, none outstanding | — | — | |||||
Common shares – no par value, authorized 12,000,000 shares, issued 10,051,897 and 10,041,163 shares at June 30, 2014 and December 31, 2013, respectively | 66,974 | 66,785 | |||||
Retained earnings | 66,437 | 65,475 | |||||
Treasury shares at cost, 753,627 shares at June 30, 2014 and December 31, 2013 | (11,665 | ) | (11,665 | ) | |||
Accumulated other comprehensive loss, net of taxes | 838 | (1,722 | ) | ||||
TOTAL SHAREHOLDERS' EQUITY | 122,584 | 118,873 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 1,151,109 | 932,338 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
INTEREST INCOME: | |||||||||||||
Interest and fees on loans | $ | 8,144 | 6,816 | 15,840 | 13,396 | ||||||||
Interest on investment securities – | |||||||||||||
Taxable | 1,026 | 860 | 1,917 | 1,694 | |||||||||
Non-taxable | 657 | 655 | 1,303 | 1,278 | |||||||||
Other short-term investments | 99 | 74 | 144 | 113 | |||||||||
TOTAL INTEREST INCOME | 9,926 | 8,405 | 19,204 | 16,481 | |||||||||
INTEREST EXPENSE: | |||||||||||||
Interest on deposits | 814 | 931 | 1,623 | 1,914 | |||||||||
Interest on short-term borrowings | 5 | 4 | 8 | 7 | |||||||||
Interest on long-term debt | 101 | 110 | 204 | 222 | |||||||||
TOTAL INTEREST EXPENSE | 920 | 1,045 | 1,835 | 2,143 | |||||||||
NET INTEREST INCOME | 9,006 | 7,360 | 17,369 | 14,338 | |||||||||
PROVISION FOR LOAN LOSSES | 255 | 42 | 336 | 191 | |||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 8,751 | 7,318 | 17,033 | 14,147 | |||||||||
NON-INTEREST INCOME: | |||||||||||||
Trust income | 728 | 609 | 1,383 | 1,184 | |||||||||
Service charges and fees on deposit accounts | 1,252 | 1,073 | 2,374 | 2,052 | |||||||||
Net gain (loss) on sales of securities | — | 108 | (4 | ) | 695 | ||||||||
Bank owned life insurance income | 170 | 172 | 342 | 344 | |||||||||
Gains from sales of mortgage loans | 53 | 119 | 68 | 248 | |||||||||
Other operating income | 98 | 97 | 215 | 162 | |||||||||
TOTAL NON-INTEREST INCOME | 2,301 | 2,178 | 4,378 | 4,685 | |||||||||
NON-INTEREST EXPENSE: | |||||||||||||
Salaries and employee benefits | 3,956 | 3,242 | 7,874 | 6,536 | |||||||||
Equipment expenses | 345 | 298 | 639 | 590 | |||||||||
Occupancy expense, net | 514 | 518 | 1,165 | 1,024 | |||||||||
State franchise tax | 239 | 211 | 483 | 427 | |||||||||
Marketing | 197 | 157 | 329 | 301 | |||||||||
FDIC insurance premiums | 160 | 119 | 309 | 247 | |||||||||
Merger-related expenses | 70 | 271 | 1,362 | 1,326 | |||||||||
Other non-interest expense | 2,119 | 1,508 | 4,111 | 2,964 | |||||||||
TOTAL NON-INTEREST EXPENSE | 7,600 | 6,324 | 16,272 | 13,415 | |||||||||
INCOME BEFORE INCOME TAXES | 3,452 | 3,172 | 5,139 | 5,417 | |||||||||
PROVISION FOR INCOME TAXES | 841 | 824 | 1,205 | 1,341 | |||||||||
NET INCOME | $ | 2,611 | 2,348 | 3,934 | 4,076 | ||||||||
Dividends declared per common share | $ | 0.16 | 0.16 | 0.32 | 0.32 | ||||||||
Earnings per common share: | |||||||||||||
Basic | $ | 0.28 | 0.31 | 0.42 | 0.54 | ||||||||
Diluted | 0.28 | 0.30 | 0.42 | 0.53 | |||||||||
Weighted average common shares outstanding: | |||||||||||||
Basic | 9,293,382 | 7,627,900 | 9,290,905 | 7,570,817 | |||||||||
Diluted | 9,402,343 | 7,759,438 | 9,407,964 | 7,686,890 |