0001074902-16-000072.txt : 20161018 0001074902-16-000072.hdr.sgml : 20161018 20161018164154 ACCESSION NUMBER: 0001074902-16-000072 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20161018 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20161018 DATE AS OF CHANGE: 20161018 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LCNB CORP CENTRAL INDEX KEY: 0001074902 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 311626393 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-35292 FILM NUMBER: 161941211 BUSINESS ADDRESS: STREET 1: 2 NORTH BROADWAY CITY: LEBANON STATE: OH ZIP: 45036 BUSINESS PHONE: 5139321414 MAIL ADDRESS: STREET 1: 2 NORTH BROADWAY CITY: LEBANON STATE: OH ZIP: 45036 8-K 1 lcnb-x8xk2016qr3xearningsr.htm 8-K Document
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________

FORM 8‑K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934


Date of Report (Date of earliest event reported): October 18, 2016
LCNB CORP.
(Exact name of Registrant as specified in its Charter)


Ohio
001-35292
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)

Registrant’s telephone number, including area code: (513) 932-1414
N/A
(Former name or former address, if changed since last report)



Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

__    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

__    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

__    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

__    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))





Item 2.02 Results of Operations and Financial Condition.

On October 18, 2016, LCNB Corp. issued an earnings release announcing its financial results for the third quarter ended September 30, 2016. A copy of the earnings release (Exhibit 99.1) and unaudited financial highlights (Exhibit 99.2) are attached and are furnished under this Item 2.02.

Item 7.01 Regulation FD Disclosure.

On October 18, 2016, LCNB Corp. issued an earnings release announcing its financial results for the third quarter ended September 30, 2016. A copy of the earnings release (Exhibit 99.1) and unaudited financial highlights (Exhibit 99.2) are attached and are furnished under this Item 7.01.

Item 9.01 Financial Statements and Exhibits.

(d)    Exhibits.

Exhibit No.        Description
99.1
Earnings Press Release Dated October 18, 2016
99.2
Unaudited Financial Highlights
 



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.

 
 
LCNB CORP.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Date: October 18, 2016
 
By: /s/ Robert C. Haines II              
 
 
 
 
Robert C. Haines II
Chief Financial Officer
 
 
 
 
 


EX-99.1 2 lcnb-x8xkexhibit9912016qr3.htm EXHIBIT 99.1 Exhibit


Exhibit 99.1

Press Release
October 18, 2016

LCNB CORP. REPORTS FINANCIAL RESULTS FOR
THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2016

LCNB Corp. (LCNB) today announced net income of $2,896,000 (total basic and diluted earnings per share of $0.29) and $8,828,000 (total basic and diluted earnings per share of $0.89 and $0.88, respectively) for the three and nine months ended September 30, 2016, respectively.  This compares to net income of $2,633,000 (total basic and diluted earnings per share of $0.26) and $8,590,000 (total basic and diluted earnings per share of $0.89 and $0.88, respectively) for the same three and nine-month periods in 2015. Results for 2016 were significantly affected by the acquisition of BNB Bancorp, Inc. ("BNB") on April 30, 2015. In addition, LCNB sold impaired loans with a carrying value of approximately $4.5 million during the second quarter 2015.

Commenting on the financial results, LCNB Chief Executive Officer Steve Foster said, "we are pleased to present our financial results for the three and nine months ended September 30, 2016. Net income for the three and nine-month periods of 2016 was $263,000 and $238,000 greater than the comparable periods in 2015, respectively, despite several one-time charges that were recognized during 2016. The first of which was a $251,000 penalty incurred during the first quarter for the early payoff a now high-rate Federal Home Loan Bank ("FHLB") borrowing, which will decrease future interest expense. The second was write-downs totaling $576,000 recognized during the second and third quarters for a commercial other real estate owned property. Organic loan growth during the nine-month period in 2016 was $40.7 million, which significantly contributed to increases in net interest income of $513,000 and $482,000 for the three and nine months ended September 30, 2016, respectively, as compared to the same periods in 2015."

The provision for loan losses for the three months ended September 30, 2016 was $132,000 greater than the comparable period in 2015. The provision for the nine-month period of 2016 was $128,000 less than the comparable period in 2015. Net loan charge-offs for the nine months ended September 30, 2016 and 2015 totaled $189,000 and $1,148,000, respectively.  The 2015 balance includes charge-offs recognized as a result of the impaired loan sale mentioned above. Non-accrual loans and loans past due 90 days or more and still accruing interest increased $2,357,000, from $2,282,000 or 0.30% of total loans at December 31, 2015, to $4,639,000 or 0.57% of total loans at September 30, 2016, primarily due to two loans to the same borrower totaling $1,307,000 that were newly classified as non-accrual during the first quarter 2016 and two loans to same borrower totaling $1,217,000 that were newly classified as non-accrual during the third quarter 2016.  Other real estate owned (which includes property acquired through foreclosure or deed-in-lieu of foreclosure) decreased from $846,000 at December 31, 2015 to $270,000 at September 30, 2016 due to write-downs totaling $576,000 recognized on commercial property.

Non-interest income for the three and nine months ended September 30, 2016 was $460,000 and $715,000 greater than the comparable periods in 2015, respectively, primarily due to increases in gains from sales of investment securities, reflecting a higher volume of securities sales.

Non-interest expense for the three and nine months ended September 30, 2016 was $505,000 and $1,190,000 greater than the comparable periods in 2015, respectively. The increase for the quarter was largely due to increases in salaries and employee benefits. The increase for the nine-month period was primarily due to increases in salaries and employee benefits, increases in other real estate owned expenses, and a $251,000 penalty for the early payoff of a $5 million FHLB advance recognized during the first quarter 2016. The FHLB advance had an interest rate of 5.25% and was paid off to reduce interest expense on long-term debt. Salaries and employee benefits increased primarily due to salary and wage increases, employees retained from the BNB acquisition, and an increase in the number of employees in addition to the acquisition. These increases were partially offset by the absence of merger-related expenses during the 2016 period.

LCNB Corp. is a financial holding company headquartered in Lebanon, Ohio. Through its subsidiary, LCNB National Bank (the “Bank”), it serves customers and communities in Southwest and South Central Ohio. A financial institution with a long tradition for building strong relationships with customers and communities, the Bank offers convenient banking locations in Butler, Clermont, Clinton, Fayette, Hamilton, Montgomery, Preble, Ross and Warren Counties, Ohio. The Bank continually strives to exceed customer expectations and provides an array of services for all personal and business banking needs including





checking, savings, online banking, personal lending, business lending, agricultural lending, business support, deposit and treasury, investment services, trust and IRAs and stock purchases. LCNB Corp. common shares are traded on the NASDAQ Capital Market Exchange® under the symbol “LCNB.” Learn more about LCNB Corp. at www.lcnb.com.

Certain statements made in this news release regarding LCNB’s financial condition, results of operations, plans, objectives, future performance and business, are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements are identified by the fact they are not historical facts and include words such as “anticipate”, “could”, “may”, “feel”, “expect”, “believe”, “plan”, and similar expressions.

These forward-looking statements reflect management's current expectations based on all information available to management and its knowledge of LCNB’s business and operations. Additionally, LCNB’s financial condition, results of operations, plans, objectives, future performance and business are subject to risks and uncertainties that may cause actual results to differ materially. These factors include, but are not limited to:
1.
the success, impact, and timing of the implementation of LCNB’s business strategies;
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. 

Forward-looking statements made herein reflect management's expectations as of the date such statements are made. Such information is provided to assist shareholders and potential investors in understanding current and anticipated financial operations of LCNB and is included pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. LCNB undertakes no obligation to update any forward-looking statement to reflect events or circumstances that arise after the date such statements are made. 



EX-99.2 3 lcnb-x8xkexhibit9922016qr3.htm EXHIBIT 99.2 Exhibit


Exhibit 99.2

LCNB Corp. and Subsidiaries
Financial Highlights
(Dollars in thousands, except per share amounts)
(Unaudited)
 
Three Months Ended
 
Nine Months Ended
 
9/30/2016
 
6/30/2016
 
3/31/2016
 
12/31/2015
 
9/30/2015
 
9/30/2016
 
9/30/2015
Condensed Income Statement
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
$
10,895

 
11,008

 
10,621

 
10,812

 
10,409

 
32,524

 
31,847

Interest expense
885

 
883

 
849

 
906

 
912

 
2,617

 
2,422

Net interest income
10,010

 
10,125

 
9,772

 
9,906

 
9,497

 
29,907

 
29,425

Provision for loan losses
372

 
396

 
90

 
380

 
240

 
858

 
986

Net interest income after provision
9,638

 
9,729

 
9,682

 
9,526

 
9,257

 
29,049

 
28,439

Non-interest income
2,846

 
2,750

 
2,642

 
2,600

 
2,386

 
8,238

 
7,523

Non-interest expense
8,593

 
8,468

 
8,292

 
8,229

 
8,088

 
25,353

 
24,163

Income before income taxes
3,891

 
4,011

 
4,032

 
3,897

 
3,555

 
11,934

 
11,799

Provision for income taxes
995

 
1,043

 
1,068

 
1,013

 
922

 
3,106

 
3,209

Net income
$
2,896

 
2,968

 
2,964

 
2,884

 
2,633

 
8,828

 
8,590

Accreted income on acquired loans
$
223

 
304

 
343

 
292

 
255

 
870

 
1,934

Amortization of acquired deposit premiums
$
0

 
0

 
27

 
34

 
46

 
27

 
443

Tax-equivalent net interest income
$
10,432

 
10,538

 
10,166

 
10,298

 
9,874

 
31,136

 
30,500

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Per Share Data
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends per share
$
0.16

 
0.16

 
0.16

 
0.16

 
0.16

 
0.48

 
0.48

Basic earnings per share
$
0.29

 
0.30

 
0.30

 
0.29

 
0.26

 
0.89

 
0.89

Diluted earnings per share
$
0.29

 
0.29

 
0.30

 
0.29

 
0.26

 
0.88

 
0.88

Book value per share
$
14.70

 
14.66

 
14.39

 
14.12

 
14.22

 
14.70

 
14.22

Tangible book value per share
$
11.24

 
11.17

 
10.88

 
10.58

 
10.66

 
11.24

 
10.66

Average basic shares outstanding
9,962,571

 
9,922,024

 
9,916,114

 
9,905,612

 
9,898,233

 
9,930,182

 
9,637,344

Average diluted shares outstanding
9,977,592

 
9,943,797

 
9,998,516

 
10,014,908

 
10,005,788

 
9,974,319

 
9,742,839

Shares outstanding at period end
9,993,695

 
9,937,262

 
9,931,788

 
9,925,547

 
9,903,294

 
9,993,695

 
9,903,294

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Financial Ratios
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on average assets
0.87
 %
 
0.92
%
 
0.93
%
 
0.89
%
 
0.82
%
 
0.91
%
 
0.95
%
Return on average equity
7.82
 %
 
8.28
%
 
8.37
%
 
8.07
%
 
7.51
%
 
8.15
%
 
8.55
%
Dividend payout ratio
55.17
 %
 
53.33
%
 
53.33
%
 
55.17
%
 
61.54
%
 
53.93
%
 
53.93
%
Net interest margin (tax equivalent)
3.42
 %
 
3.55
%
 
3.49
%
 
3.46
%
 
3.37
%
 
3.49
%
 
3.71
%
Efficiency ratio (tax equivalent)
64.71
 %
 
63.73
%
 
64.74
%
 
63.80
%
 
65.97
%
 
64.39
%
 
63.55
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Balance Sheet Items
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment securities and stock
$
394,798

 
399,345

 
393,976

 
406,981

 
391,430

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
40,097

 
45,153

 
45,324

 
45,275

 
45,325

 
 
 
 
Commercial, secured by real estate
467,512

 
455,654

 
430,179

 
419,633

 
407,264

 
 
 
 
Residential real estate
268,574

 
266,625

 
271,812

 
273,139

 
274,054

 
 
 
 
Consumer
18,752

 
18,545

 
17,925

 
18,510

 
19,283

 
 
 
 
  Agricultural
15,872

 
13,605

 
12,589

 
13,479

 
16,016

 
 
 
 
Other, including deposit overdrafts
619

 
635

 
643

 
665

 
676

 
 
 
 
Deferred net origination costs
236

 
248

 
242

 
237

 
215

 
 
 
 
  Loans, gross
811,662

 
800,465

 
778,714

 
770,938

 
762,833

 
 
 
 
Less allowance for loan losses
3,798

 
3,373

 
3,150

 
3,129

 
2,958

 
 
 
 
  Loans, net
$
807,864

 
797,092

 
775,564

 
767,809

 
759,875

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total earning assets
$
1,222,614

 
1,201,563

 
1,180,719

 
1,178,750

 
1,168,629

 
 
 
 
Total assets
1,333,536

 
1,312,635

 
1,285,922

 
1,280,531

 
1,275,171

 
 
 
 
Total deposits
1,158,921

 
1,124,698

 
1,120,208

 
1,087,160

 
1,103,513

 
 
 
 
Short-term borrowings
16,989

 
30,541

 
11,668

 
37,387

 
14,931

 
 
 
 
Long-term debt
662

 
726

 
789

 
5,947

 
6,016

 
 
 
 





 
Three Months Ended
 
Six Months Ended
 
9/30/2016
 
6/30/2016
 
3/31/2016
 
12/31/2015
 
9/30/2015
 
9/30/2016
 
9/30/2015
Selected Balance Sheet Items, continued
 
 
 
 
 
 
 
 
 
 
 
 
Total shareholders’ equity
146,906

 
145,710

 
142,933

 
140,108

 
140,851

 
 
 
 
Equity to assets ratio
11.02
 %
 
11.10
%
 
11.12
%
 
10.94
%
 
11.05
%
 
 
 
 
Loans to deposits ratio
70.04
 %
 
71.17
%
 
69.52
%
 
70.91
%
 
69.13
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tangible common equity (TCE)
$
111,946

 
110,541

 
107,567

 
104,529

 
105,063

 
 
 
 
Tangible common assets (TCA)
1,298,576

 
1,277,466

 
1,250,556

 
1,244,952

 
1,239,383

 
 
 
 
TCE/TCA
8.62
 %
 
8.65
%
 
8.60
%
 
8.40
%
 
8.48
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Average Balance Sheet Items
 
 
 
 
 
 
 
 
 
 
 
 
Investment securities and stock
$
396,620

 
396,130

 
389,648

 
406,423

 
385,353

 
394,141

 
353,391

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans
$
800,729

 
784,324

 
772,204

 
764,440

 
760,159

 
785,807

 
732,600

Less allowance for loan losses
3,382

 
3,103

 
3,130

 
2,929

 
2,885

 
3,206

 
2,873

Net loans
$
797,347

 
781,221

 
769,074

 
761,511

 
757,274

 
782,601

 
729,727

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total earning assets
$
1,212,232

 
1,193,585

 
1,171,709

 
1,181,594

 
1,160,768

 
1,192,580

 
1,099,351

Total assets
1,323,532

 
1,303,073

 
1,278,014

 
1,285,114

 
1,267,171

 
1,301,620

 
1,204,909

Total deposits
1,147,981

 
1,133,403

 
1,104,330

 
1,107,214

 
1,099,730

 
1,128,642

 
1,042,879

Short-term borrowings
16,328

 
14,355

 
20,710

 
20,290

 
13,450

 
17,128

 
13,358

Long-term debt
684

 
747

 
1,256

 
5,970

 
6,040

 
895

 
6,247

Total shareholders’ equity
147,371

 
144,185

 
142,447

 
141,751

 
139,032

 
144,678

 
134,256

Equity to assets ratio
11.13
 %
 
11.06
%
 
11.15
%
 
11.03
%
 
10.97
%
 
11.12
%
 
11.14
%
Loans to deposits ratio
69.75
 %
 
69.20
%
 
69.93
%
 
69.04
%
 
69.12
%
 
69.62
%
 
70.25
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset Quality
 
 
 
 
 
 
 
 
 
 
 
 
 
Net charge-offs
$
(53
)
 
173

 
69

 
209

 
161

 
 
 
 
Other real estate owned
270

 
682

 
846

 
846

 
1,208

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-accrual loans
4,619

 
2,697

 
3,328

 
1,723

 
2,254

 
 
 
 
Loans past due 90 days or more and still accruing
20

 
369

 
99

 
559

 
130

 
 
 
 
Total nonperforming loans
$
4,639

 
3,066

 
3,427

 
2,282

 
2,384

 


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net charge-offs to average loans
(0.03
)%
 
0.09
%
 
0.04
%
 
0.11
%
 
0.08
%
 
 
 
 
Allowance for loan losses to total loans
0.47
 %
 
0.42
%
 
0.40
%
 
0.41
%
 
0.39
%
 



 
Nonperforming loans to total loans
0.57
 %
 
0.38
%
 
0.44
%
 
0.30
%
 
0.31
%
 



 
Nonperforming assets to total assets
0.37
 %
 
0.29
%
 
0.33
%
 
0.24
%
 
0.28
%
 



 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets Under Management
 
 
 
 
 
 
 
 
 
 
 
 
 
LCNB Corp. total assets
$
1,333,536

 
1,312,635

 
1,285,922

 
1,280,531

 
1,275,171

 
 
 
 
Trust and investments (fair value)
293,808

 
284,118

 
274,297

 
283,193

 
258,675

 
 
 
 
Mortgage loans serviced
105,018

 
107,189

 
107,992

 
111,837

 
113,610

 
 
 
 
Business cash management
7,647

 
8,551

 
6,773

 
7,271

 
6,809

 
 
 
 
Brokerage accounts (fair value)
179,244

 
163,596

 
157,713

 
148,956

 
142,151

 
 
 
 
Total assets managed
$
1,919,253

 
1,876,089

 
1,832,697

 
1,831,788

 
1,796,416

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-GAAP Financial Measures
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
$
2,896

 
2,968

 
2,964

 
2,884

 
2,633

 
8,828

 
8,590

Less (add) net gain (loss) on sales of securities, net of tax
202

 
183

 
245

 
108

 
0

 
630

 
219

Add merger-related expenses, net of tax
0

 
0

 
0

 
2

 
32

 
0

 
461

Core net income
$
2,694

 
2,785

 
2,719

 
2,778

 
2,665

 
8,198

 
8,832

Basic core earnings per share
$
0.27

 
0.28

 
0.27

 
0.28

 
0.27

 
0.83

 
0.92

Diluted core earnings per share
$
0.27

 
0.28

 
0.27

 
0.28

 
0.27

 
0.82

 
0.91

Adjusted return on average assets
0.81
 %
 
0.86
%
 
0.85
%
 
0.86
%
 
0.83
%
 
0.84
%
 
0.98
%
Adjusted return on average equity
7.27
 %
 
7.77
%
 
7.66
%
 
7.77
%
 
7.60
%
 
7.57
%
 
8.80
%
Core efficiency ratio (tax equivalent)
66.24
 %
 
65.09
%
 
66.67
%
 
64.60
%
 
65.57
%
 
65.99
%
 
62.41
%





LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS

(Dollars in thousands)
 
September 30, 2016 (Unaudited)
 
December 31, 2015
ASSETS:
 
 
 
Cash and due from banks
$
17,059

 
14,155

Interest-bearing demand deposits
16,154

 
832

Total cash and cash equivalents
33,213

 
14,987

Investment securities:
 

 
 

Available-for-sale, at fair value
346,391

 
377,978

Held-to-maturity, at cost
42,037

 
22,633

Federal Reserve Bank stock, at cost
2,732

 
2,732

Federal Home Loan Bank stock, at cost
3,638

 
3,638

Loans, net
807,864

 
767,809

Premises and equipment, net
26,347

 
22,100

Goodwill
30,183

 
30,183

Core deposit and other intangibles
4,777

 
5,396

Bank owned life insurance
27,114

 
22,561

Other assets
9,240

 
10,514

TOTAL ASSETS
$
1,333,536

 
1,280,531

 
 
 
 
LIABILITIES:
 

 
 

Deposits:
 

 
 

Noninterest-bearing
$
259,043

 
250,306

Interest-bearing
899,878

 
836,854

Total deposits
1,158,921

 
1,087,160

Short-term borrowings
16,989

 
37,387

Long-term debt
662

 
5,947

Accrued interest and other liabilities
10,058

 
9,929

TOTAL LIABILITIES
1,186,630

 
1,140,423

 
 
 
 
COMMITMENTS AND CONTINGENT LIABILITIES
 
 
 
 
 
 
 
SHAREHOLDERS' EQUITY:
 

 
 

Preferred shares – no par value, authorized 1,000,000 shares, none outstanding

 

Common shares – no par value, authorized 19,000,000 and12,000,000 shares at September 30, 2016 and December 31, 2015, respectively; issued 10,747,322 and 10,679,174 shares at September 30, 2016 and December 31, 2015, respectively
76,367

 
76,908

Retained earnings
78,682

 
74,629

Treasury shares at cost, 753,627 shares at September 30, 2016 and December 31, 2015
(11,665
)
 
(11,665
)
Accumulated other comprehensive income, net of taxes
3,522

 
236

TOTAL SHAREHOLDERS' EQUITY
146,906

 
140,108

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$
1,333,536

 
1,280,531










LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
 
Three Months Ended 
 September 30,
 
Nine Months Ended 
 September 30,
 
2016
 
2015
 
2016
 
2015
INTEREST INCOME:
 
 
 
 
 
 
 
Interest and fees on loans
$
8,876

 
8,540

 
26,395

 
26,572

Interest on investment securities –
 
 
 

 
 

 
 

Taxable
1,152

 
1,094

 
3,528

 
2,983

Non-taxable
813

 
732

 
2,365

 
2,087

Other short-term investments
54

 
43

 
236

 
205

TOTAL INTEREST INCOME
10,895

 
10,409

 
32,524

 
31,847

INTEREST EXPENSE:
 

 
 

 
 

 
 

Interest on deposits
872

 
834

 
2,565

 
2,187

Interest on short-term borrowings
8

 
5

 
30

 
13

Interest on long-term debt
5

 
73

 
22

 
222

TOTAL INTEREST EXPENSE
885

 
912

 
2,617

 
2,422

NET INTEREST INCOME
10,010

 
9,497

 
29,907

 
29,425

PROVISION FOR LOAN LOSSES
372

 
240

 
858

 
986

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
9,638

 
9,257

 
29,049

 
28,439

NON-INTEREST INCOME:
 

 
 

 
 

 
 

Trust income
871

 
754

 
2,471

 
2,406

Service charges and fees on deposit accounts
1,276

 
1,314

 
3,712

 
3,655

Net gain (loss) on sales of securities
307

 

 
957

 
332

Bank owned life insurance income
193

 
156

 
553

 
470

Gains from sales of loans
73

 
34

 
175

 
288

Other operating income
126

 
128

 
370

 
372

TOTAL NON-INTEREST INCOME
2,846

 
2,386

 
8,238

 
7,523

NON-INTEREST EXPENSE:
 

 
 

 
 

 
 

Salaries and employee benefits
4,642

 
4,340

 
13,737

 
13,011

Equipment expenses
279

 
324

 
767

 
914

Occupancy expense, net
550

 
570

 
1,707

 
1,749

State franchise tax
279

 
251

 
836

 
753

Marketing
162

 
176

 
530

 
559

Amortization of intangibles
189

 
189

 
564

 
510

FDIC insurance premiums
168

 
136

 
495

 
432

Other real estate owned
222

 
188

 
607

 
243

Merger-related expenses

 
49

 

 
641

Other non-interest expense
2,102

 
1,865

 
6,110

 
5,351

TOTAL NON-INTEREST EXPENSE
8,593

 
8,088

 
25,353

 
24,163

INCOME BEFORE INCOME TAXES
3,891

 
3,555

 
11,934

 
11,799

PROVISION FOR INCOME TAXES
995

 
922

 
3,106

 
3,209

NET INCOME
$
2,896

 
2,633

 
8,828

 
8,590

 
 
 
 
 
 
 
 
Dividends declared per common share
$
0.16

 
0.16

 
0.48

 
0.48

Earnings per common share:
 

 
 

 
 

 
 

Basic
0.29

 
0.26

 
0.89

 
0.89

Diluted
0.29

 
0.26

 
0.88

 
0.88

Weighted average common shares outstanding:
 
 
 

 
 
 
 

Basic
9,962,571

 
9,898,233

 
9,930,182

 
9,637,344

Diluted
9,977,592

 
10,005,788

 
9,974,319

 
9,742,839