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 23, 2015 |
99.2 | Unaudited Financial Highlights |
LCNB CORP. | ||||||
Date: July 23, 2015 | By: /s/ Robert C. Haines II | |||||
Robert C. Haines II Chief Financial Officer | ||||||
1. | the success, impact, and timing of the implementation of LCNB’s business strategies, including the successful integration of recently completed and pending acquisitions; |
2. | LCNB may incur increased charge-offs in the future; |
3. | LCNB may face competitive loss of customers; |
4. | changes in the interest rate environment may have results on LCNB’s operations materially different from those anticipated by LCNB’s market risk management functions; |
5. | changes in general economic conditions and increased competition could adversely affect LCNB’s operating results; |
6. | changes in other regulations and government policies affecting bank holding companies and their subsidiaries, including changes in monetary policies, could negatively impact LCNB’s operating results; |
7. | LCNB may experience difficulties growing loan and deposit balances; |
8. | the current economic environment poses significant challenges for us and could adversely affect our financial condition and results of operations; |
9. | deterioration in the financial condition of the U.S. banking system may impact the valuations of investments LCNB has made in the securities of other financial institutions resulting in either actual losses or other than temporary impairments on such investments; and |
10. | the effects of the Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) and the regulations promulgated and to be promulgated thereunder, which may subject LCNB and its subsidiaries to a variety of new and more stringent legal and regulatory requirements which adversely affect their respective businesses. |
Three Months Ended | Six Months Ended | |||||||||||||||||||||
6/30/2015 | 3/31/2015 | 12/31/2014 | 9/30/2014 | 6/30/2014 | 6/30/2015 | 6/30/2014 | ||||||||||||||||
Condensed Income Statement | ||||||||||||||||||||||
Interest income | $ | 11,348 | $ | 10,090 | 10,367 | 9,906 | 9,926 | 21,438 | 19,204 | |||||||||||||
Interest expense | 748 | 762 | 844 | 911 | 920 | 1,510 | 1,835 | |||||||||||||||
Net interest income | 10,600 | 9,328 | 9,523 | 8,995 | 9,006 | 19,928 | 17,369 | |||||||||||||||
Provision for loan losses | 677 | 69 | 193 | 401 | 255 | 746 | 336 | |||||||||||||||
Net interest income after provision | 9,923 | 9,259 | 9,330 | 8,594 | 8,751 | 19,182 | 17,033 | |||||||||||||||
Non-interest income | 2,831 | 2,306 | 2,449 | 2,315 | 2,301 | 5,137 | 4,378 | |||||||||||||||
Non-interest expense | 8,426 | 7,649 | 7,334 | 7,238 | 7,600 | 16,075 | 16,272 | |||||||||||||||
Income before income taxes | 4,328 | 3,916 | 4,445 | 3,671 | 3,452 | 8,244 | 5,139 | |||||||||||||||
Provision for income taxes | 1,205 | 1,082 | 1,228 | 953 | 841 | 2,287 | 1,205 | |||||||||||||||
Net income | $ | 3,123 | 2,834 | 3,217 | 2,718 | 2,611 | 5,957 | 3,934 | ||||||||||||||
Per Share Data | ||||||||||||||||||||||
Dividends per share | $ | 0.16 | 0.16 | 0.16 | 0.16 | 0.16 | 0.32 | 0.32 | ||||||||||||||
Basic earnings per share | $ | 0.33 | 0.30 | 0.34 | 0.30 | 0.28 | 0.63 | 0.42 | ||||||||||||||
Diluted earnings per share | $ | 0.32 | 0.30 | 0.34 | 0.29 | 0.28 | 0.62 | 0.42 | ||||||||||||||
Book value per share | $ | 13.91 | 13.80 | 13.50 | 13.24 | 13.18 | 13.91 | 13.18 | ||||||||||||||
Tangible book value per share | $ | 10.33 | 10.40 | 10.08 | 9.80 | 9.73 | 10.33 | 9.73 | ||||||||||||||
Average basic shares outstanding | 9,694,732 | 9,312,636 | 9,306,382 | 9,299,691 | 9,293,382 | 9,504,739 | 9,290,905 | |||||||||||||||
Average diluted shares outstanding | 9,804,728 | 9,410,774 | 9,403,013 | 9,405,013 | 9,402,343 | 9,609,050 | 9,407,964 | |||||||||||||||
Shares outstanding at period end | 9,896,904 | 9,317,583 | 9,311,318 | 9,305,208 | 9,298,270 | 9,896,904 | 9,298,270 | |||||||||||||||
Selected Financial Ratios | ||||||||||||||||||||||
Return on average assets | 1.03 | % | 1.02 | % | 1.14 | % | 0.95 | % | 0.91 | % | 1.02 | % | 0.72 | % | ||||||||
Return on average equity | 9.21 | % | 9.01 | % | 10.18 | % | 8.71 | % | 8.60 | % | 9.11 | % | 6.57 | % | ||||||||
Dividend payout ratio | 48.48 | % | 53.33 | % | 47.06 | % | 53.33 | % | 57.14 | % | 50.79 | % | 76.19 | % | ||||||||
Net interest margin (tax equivalent) | 3.95 | % | 3.83 | % | 3.82 | % | 3.57 | % | 3.59 | % | 3.89 | % | 3.62 | % | ||||||||
Efficiency ratio (tax equivalent) | 61.08 | % | 63.90 | % | 59.48 | % | 61.97 | % | 65.26 | % | 62.39 | % | 72.58 | % | ||||||||
Selected Balance Sheet Items | ||||||||||||||||||||||
Investment securities and stock | $ | 378,651 | 329,429 | 314,074 | 322,341 | 357,567 | ||||||||||||||||
Loans: | ||||||||||||||||||||||
Commercial and industrial | $ | 47,958 | 36,447 | 35,424 | 34,997 | 38,919 | ||||||||||||||||
Commercial, secured by real estate | 399,551 | 381,371 | 379,141 | 371,533 | 377,806 | |||||||||||||||||
Residential real estate | 273,249 | 255,926 | 254,087 | 248,113 | 243,966 | |||||||||||||||||
Consumer | 19,718 | 17,296 | 18,006 | 19,305 | 20,015 | |||||||||||||||||
Agricultural | 13,434 | 9,816 | 11,472 | 9,249 | 8,466 | |||||||||||||||||
Other, including deposit overdrafts | 638 | 678 | 680 | 2,651 | 2,594 | |||||||||||||||||
Deferred net origination costs (fees) | 188 | 151 | 146 | 67 | (47 | ) | ||||||||||||||||
Loans, gross | 754,736 | 701,685 | 698,956 | 685,915 | 691,719 | |||||||||||||||||
Less allowance for loan losses | 2,879 | 2,837 | 3,121 | 3,298 | 3,394 | |||||||||||||||||
Loans, net | $ | 751,857 | 698,848 | 695,835 | 682,617 | 688,325 | ||||||||||||||||
Total assets | $ | 1,249,363 | 1,129,497 | 1,108,066 | 1,123,356 | 1,151,109 | ||||||||||||||||
Total deposits | 1,084,033 | 973,725 | 946,205 | 956,633 | 986,824 | |||||||||||||||||
Short-term borrowings | 12,731 | 13,454 | 16,645 | 24,954 | 23,523 | |||||||||||||||||
Long-term debt | 6,085 | 6,153 | 11,357 | 11,432 | 11,506 | |||||||||||||||||
Total shareholders’ equity | 137,698 | 128,576 | 125,695 | 123,179 | 122,584 |
Three Months Ended | Six Months Ended | |||||||||||||||||||||
6/30/2015 | 3/31/2015 | 12/31/2014 | 9/30/2014 | 6/30/2014 | 6/30/2015 | 6/30/2014 | ||||||||||||||||
Selected Balance Sheet Items, continued | ||||||||||||||||||||||
Tangible common equity (TCE) | $ | 101,694 | 96,340 | 93,277 | 90,579 | 89,800 | ||||||||||||||||
Tangible common assets (TCA) | 1,213,359 | 1,097,261 | 1,075,648 | 1,090,756 | 1,118,325 | |||||||||||||||||
TCE/TA | 8.38 | % | 8.78 | % | 8.67 | % | 8.30 | % | 8.03 | % | ||||||||||||
Loans to deposit ratio | 69.62 | % | 72.06 | % | 73.87 | % | 71.70 | % | 70.10 | % | ||||||||||||
Equity to assets ratio | 11.02 | % | 11.38 | % | 11.34 | % | 10.97 | % | 10.65 | % | ||||||||||||
Selected Average Balance Sheet Items | ||||||||||||||||||||||
Investment securities and stock | $ | 360,750 | 313,279 | 311,395 | 348,469 | 347,837 | 337,146 | 325,438 | ||||||||||||||
Loans | $ | 737,021 | 699,959 | 694,185 | 688,972 | 685,581 | 718,592 | 666,663 | ||||||||||||||
Less allowance for loan losses | 2,865 | 2,870 | 3,075 | 3,288 | 3,367 | 2,868 | 3,369 | |||||||||||||||
Net loans | $ | 734,156 | 697,089 | 691,110 | 685,684 | 682,214 | 715,724 | 663,294 | ||||||||||||||
Total assets | $ | 1,220,938 | 1,125,326 | 1,123,949 | 1,140,922 | 1,145,300 | 1,173,307 | 1,108,454 | ||||||||||||||
Total deposits | 1,057,818 | 969,658 | 967,505 | 976,109 | 991,809 | 1,013,982 | 957,123 | |||||||||||||||
Short-term borrowings | 12,803 | 13,824 | 12,217 | 22,547 | 13,601 | 13,310 | 12,215 | |||||||||||||||
Long-term debt | 6,108 | 6,598 | 11,382 | 11,457 | 11,531 | 6,352 | 11,675 | |||||||||||||||
Total shareholders’ equity | 136,003 | 127,608 | 125,302 | 123,807 | 121,725 | 131,829 | 120,847 | |||||||||||||||
Asset Quality | ||||||||||||||||||||||
Net charge-offs | $ | 636 | 352 | 370 | 496 | 232 | ||||||||||||||||
Other real estate owned | 1,364 | 1,364 | 1,370 | 1,460 | 1,906 | |||||||||||||||||
Non-accrual loans | 1,961 | 3,972 | 5,599 | 6,264 | 6,243 | |||||||||||||||||
Loans past due 90 days or more and still accruing | 128 | 355 | 203 | 111 | 130 | |||||||||||||||||
Total nonperforming loans | $ | 2,089 | 4,327 | 5,802 | 6,375 | 6,373 | ||||||||||||||||
Net charge-offs to average loans | 0.35 | % | 0.20 | % | 0.21 | % | 0.29 | % | 0.14 | % | ||||||||||||
Allowance for loan losses to total loans | 0.38 | % | 0.40 | % | 0.45 | % | 0.48 | % | 0.49 | % | ||||||||||||
Nonperforming loans to total loans | 0.28 | % | 0.62 | % | 0.83 | % | 0.93 | % | 0.92 | % | ||||||||||||
Nonperforming assets to total assets | 0.28 | % | 0.50 | % | 0.65 | % | 0.70 | % | 0.72 | % | ||||||||||||
Assets Under Management | ||||||||||||||||||||||
LCNB Corp. total assets | $ | 1,249,363 | 1,129,497 | 1,108,066 | 1,123,356 | 1,151,109 | ||||||||||||||||
Trust and investments (fair value) | 272,209 | 264,122 | 258,266 | 255,409 | 267,857 | |||||||||||||||||
Mortgage loans serviced | 117,204 | 116,534 | 120,433 | 123,792 | 128,855 | |||||||||||||||||
Business cash management | 6,628 | 5,839 | 5,811 | 5,846 | 6,307 | |||||||||||||||||
Brokerage accounts (fair value) | 144,186 | 141,439 | 132,823 | 127,303 | 126,069 | |||||||||||||||||
Total assets managed | $ | 1,789,590 | 1,657,431 | 1,625,399 | 1,635,706 | 1,680,197 | ||||||||||||||||
Non-GAAP Financial Measures | ||||||||||||||||||||||
Accreted income on acquired loans | $ | 1,348 | 326 | 442 | 375 | 361 | 1,674 | 736 | ||||||||||||||
Net income | $ | 3,123 | 2,834 | 3,217 | 2,718 | 2,611 | 5,957 | 3,934 | ||||||||||||||
Less (add) net gain (loss) on sales of securities, net of tax | 146 | 73 | 37 | 64 | 0 | 219 | (3 | ) | ||||||||||||||
Add merger-related expenses, net of tax | 363 | 50 | 26 | 3 | 46 | 429 | 899 | |||||||||||||||
Core net income | $ | 3,340 | 2,811 | 3,206 | 2,657 | 2,657 | 6,167 | 4,836 | ||||||||||||||
Basic core earnings per share | $ | 0.34 | 0.30 | 0.34 | 0.29 | 0.29 | 0.65 | 0.52 | ||||||||||||||
Diluted core earnings per share | $ | 0.34 | 0.30 | 0.34 | 0.28 | 0.28 | 0.64 | 0.51 | ||||||||||||||
Adjusted return on average assets | 1.10 | % | 1.01 | % | 1.13 | % | 0.92 | % | 0.93 | % | 1.06 | % | 0.88 | % | ||||||||
Adjusted return on average equity | 9.85 | % | 8.86 | % | 10.06 | % | 8.44 | % | 8.67 | % | 9.43 | % | 8.02 | % | ||||||||
Core efficiency ratio (tax equivalent) | 58.23 | % | 63.91 | % | 59.48 | % | 62.46 | % | 64.66 | % | 60.88 | % | 66.50 | % |
June 30, 2015 (Unaudited) | December 31, 2014 | ||||||
ASSETS: | |||||||
Cash and due from banks | $ | 21,195 | 14,235 | ||||
Interest-bearing demand deposits | 6,718 | 1,610 | |||||
Total cash and cash equivalents | 27,913 | 15,845 | |||||
Investment securities: | |||||||
Available-for-sale, at fair value | 347,860 | 285,365 | |||||
Held-to-maturity, at cost | 24,677 | 22,725 | |||||
Federal Reserve Bank stock, at cost | 2,476 | 2,346 | |||||
Federal Home Loan Bank stock, at cost | 3,638 | 3,638 | |||||
Loans, net | 751,857 | 695,835 | |||||
Premises and equipment, net | 22,591 | 20,733 | |||||
Goodwill | 30,187 | 27,638 | |||||
Core deposit and other intangibles | 5,817 | 4,780 | |||||
Bank owned life insurance | 22,250 | 21,936 | |||||
Other assets | 10,097 | 7,225 | |||||
TOTAL ASSETS | $ | 1,249,363 | 1,108,066 | ||||
LIABILITIES: | |||||||
Deposits: | |||||||
Noninterest-bearing | $ | 228,743 | 213,303 | ||||
Interest-bearing | 855,290 | 732,902 | |||||
Total deposits | 1,084,033 | 946,205 | |||||
Short-term borrowings | 12,731 | 16,645 | |||||
Long-term debt | 6,085 | 11,357 | |||||
Accrued interest and other liabilities | 8,816 | 8,164 | |||||
TOTAL LIABILITIES | 1,111,665 | 982,371 | |||||
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 10,650,531 and 10,064,945 shares at June 30, 2015 and December 31, 2014, respectively | 76,607 | 67,181 | |||||
Retained earnings | 72,281 | 69,394 | |||||
Treasury shares at cost, 753,627 shares at June 30, 2015 and December 31, 2014 | (11,665 | ) | (11,665 | ) | |||
Accumulated other comprehensive loss, net of taxes | 475 | 785 | |||||
TOTAL SHAREHOLDERS' EQUITY | 137,698 | 125,695 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 1,249,363 | 1,108,066 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||
INTEREST INCOME: | ||||||||||||
Interest and fees on loans | $ | 9,492 | 8,144 | 18,032 | 15,840 | |||||||
Interest on investment securities – | ||||||||||||
Taxable | 1,033 | 1,026 | 1,889 | 1,917 | ||||||||
Non-taxable | 702 | 657 | 1,355 | 1,303 | ||||||||
Other short-term investments | 121 | 99 | 162 | 144 | ||||||||
TOTAL INTEREST INCOME | 11,348 | 9,926 | 21,438 | 19,204 | ||||||||
INTEREST EXPENSE: | ||||||||||||
Interest on deposits | 671 | 814 | 1,353 | 1,623 | ||||||||
Interest on short-term borrowings | 4 | 5 | 8 | 8 | ||||||||
Interest on long-term debt | 73 | 101 | 149 | 204 | ||||||||
TOTAL INTEREST EXPENSE | 748 | 920 | 1,510 | 1,835 | ||||||||
NET INTEREST INCOME | 10,600 | 9,006 | 19,928 | 17,369 | ||||||||
PROVISION FOR LOAN LOSSES | 677 | 255 | 746 | 336 | ||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 9,923 | 8,751 | 19,182 | 17,033 | ||||||||
NON-INTEREST INCOME: | ||||||||||||
Trust income | 852 | 728 | 1,652 | 1,383 | ||||||||
Service charges and fees on deposit accounts | 1,234 | 1,252 | 2,341 | 2,374 | ||||||||
Net gain (loss) on sales of securities | 221 | — | 332 | (4 | ) | |||||||
Bank owned life insurance income | 155 | 170 | 314 | 342 | ||||||||
Gains from sales of mortgage loans | 219 | 53 | 254 | 68 | ||||||||
Other operating income | 150 | 98 | 244 | 215 | ||||||||
TOTAL NON-INTEREST INCOME | 2,831 | 2,301 | 5,137 | 4,378 | ||||||||
NON-INTEREST EXPENSE: | ||||||||||||
Salaries and employee benefits | 4,381 | 3,956 | 8,671 | 7,874 | ||||||||
Equipment expenses | 302 | 345 | 590 | 639 | ||||||||
Occupancy expense, net | 584 | 514 | 1,179 | 1,165 | ||||||||
State franchise tax | 250 | 239 | 502 | 483 | ||||||||
Marketing | 220 | 197 | 383 | 329 | ||||||||
Amortization of intangibles | 175 | 148 | 321 | 274 | ||||||||
FDIC insurance premiums | 145 | 160 | 296 | 309 | ||||||||
Merger-related expenses | 522 | 70 | 592 | 1,362 | ||||||||
Other non-interest expense | 1,847 | 1,971 | 3,541 | 3,837 | ||||||||
TOTAL NON-INTEREST EXPENSE | 8,426 | 7,600 | 16,075 | 16,272 | ||||||||
INCOME BEFORE INCOME TAXES | 4,328 | 3,452 | 8,244 | 5,139 | ||||||||
PROVISION FOR INCOME TAXES | 1,205 | 841 | 2,287 | 1,205 | ||||||||
NET INCOME | $ | 3,123 | 2,611 | 5,957 | 3,934 | |||||||
Dividends declared per common share | $ | 0.16 | 0.16 | 0.32 | 0.32 | |||||||
Earnings per common share: | ||||||||||||
Basic | $ | 0.33 | 0.28 | 0.63 | 0.42 | |||||||
Diluted | 0.32 | 0.28 | 0.62 | 0.42 | ||||||||
Weighted average common shares outstanding: | ||||||||||||
Basic | 9,694,732 | 9,293,382 | 9,504,739 | 9,290,905 | ||||||||
Diluted | 9,804,728 | 9,402,343 | 9,609,050 | 9,407,964 |