0001074902-17-000020.txt : 20170418 0001074902-17-000020.hdr.sgml : 20170418 20170418164145 ACCESSION NUMBER: 0001074902-17-000020 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20170418 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20170418 DATE AS OF CHANGE: 20170418 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: 17767377 BUSINESS ADDRESS: STREET 1: 2 NORTH BROADWAY STREET 2: PO BOX 59 CITY: LEBANON STATE: OH ZIP: 45036 BUSINESS PHONE: 5139321414 MAIL ADDRESS: STREET 1: 2 NORTH BROADWAY STREET 2: PO BOX 59 CITY: LEBANON STATE: OH ZIP: 45036 8-K 1 lcnb-x8xk2017qr1xearningsr.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

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Date of Report (Date of earliest event reported): January 26, 2017
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 April 18, 2017, LCNB Corp. issued an earnings release announcing its financial results for the first quarter ended March 31, 2017. 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 April 18, 2017, LCNB Corp. issued an earnings release announcing its financial results for the first quarter ended March 31, 2017. 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 April 18, 2017
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: April 18, 2017
 
By: /s/ Robert C. Haines II              
 
 
 
 
Robert C. Haines II
Chief Financial Officer
 
 
 
 
 


EX-99.1 2 lcnb-x8xkexhibit9912017qr1.htm EXHIBIT 99.1 Exhibit


Exhibit 99.1

Press Release
April 18, 2017

LCNB CORP. REPORTS FINANCIAL RESULTS FOR
THE THREE MONTHS ENDED MARCH 31, 2017

LCNB Corp. (LCNB) today announced net income of $3,246,000 (total basic and diluted earnings per share of $0.32) for the three months ended March 31, 2017.  This compares to net income of $2,964,000 (total basic and diluted earnings per share of $0.30) for the same three-month period in 2016.

Commenting on the financial results, LCNB Chief Executive Officer Steve Foster said, "We are pleased to present our financial results for the first quarter of 2017. Net income for the 2017 quarter was 9.5% greater than for the first quarter of 2016. Return on average assets (ROAA) was 1.01% and the return on average equity (ROAE) was 9.10%. This compares to an ROAA of 0.93% and an ROAE of 8.37% for the first quarter of 2016. Much of the increase was driven by growth in the loan portfolio, from a net balance of $775.6 million at March 31, 2016 to $807.2 million at March 31, 2017."

Net interest income for the three months ended March 31, 2017 increased $215,000 over the comparable period in 2016, due primarily to growth in LCNB's loan portfolio, partially offset by a decrease in the average rate earned on the portfolio.

The provision for loan losses for the three months ended March 31, 2017 was $75,000 less than the comparable period in 2016. Net loan charge-offs for the three months ended March 31, 2017 totaled $262,000, as compared to net charge-offs of $69,000 for the three months ended March 31, 2016.  Non-accrual loans and loans past due 90 days or more and still accruing interest decreased $1,867,000, from $5,748,000 or 0.70% of total loans at December 31, 2016, to $3,881,000 or 0.48% of total loans at March 31, 2017. The decrease is primarily due to two non-accrual commercial real estate loans to the same borrower with a carrying value of $1,236,000 at December 31, 2016 that were transferred into other real estate owned and subsequently sold during the first quarter 2017.

Non-interest income for the three months ended March 31, 2017 was $212,000 less than the comparable period in 2016, primarily due to the absence of $371,000 in gains from sales of securities recognized during the first quarter 2016.

Non-interest expense for the three months ended March 31, 2017 was $324,000 less than the comparable period in 2016, primarily due to the absence of a $251,000 penalty incurred during the first quarter 2016 to pre-pay a Federal Home Loan Bank borrowing bearing an interest rate of 5.25%. The borrowing was paid off to reduce future interest expense on long-term debt.

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-x8xkexhibit9922017qr1.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
 
3/31/2017
 
12/31/2016
 
9/30/2016
 
6/30/2016
 
3/31/2016
Condensed Income Statement
 
 
 
 
 
 
 
 
 
Interest income
$
10,864

 
11,226

 
10,895

 
11,008

 
10,621

Interest expense
877

 
887

 
885

 
883

 
849

Net interest income
9,987

 
10,339

 
10,010

 
10,125

 
9,772

Provision for loan losses
15

 
55

 
372

 
396

 
90

Net interest income after provision
9,972

 
10,284

 
9,638

 
9,729

 
9,682

Non-interest income
2,430

 
2,615

 
2,846

 
2,750

 
2,642

Non-interest expense
7,968

 
7,908

 
8,593

 
8,468

 
8,292

Income before income taxes
4,434

 
4,991

 
3,891

 
4,011

 
4,032

Provision for income taxes
1,188

 
1,337

 
995

 
1,043

 
1,068

Net income
$
3,246

 
3,654

 
2,896

 
2,968

 
2,964

Accreted income on acquired loans
$
220

 
495

 
223

 
304

 
343

Tax-equivalent net interest income
$
10,410

 
10,772

 
10,432

 
10,538

 
10,166

 
 
 
 
 
 
 
 
 
 
Per Share Data
 
 
 
 
 
 
 
 
 
Dividends per share
$
0.16

 
0.16

 
0.16

 
0.16

 
0.16

Basic earnings per common share
$
0.32

 
0.37

 
0.29

 
0.30

 
0.30

Diluted earnings per common share
$
0.32

 
0.37

 
0.29

 
0.29

 
0.30

Book value per share
$
14.52

 
14.30

 
14.70

 
14.66

 
14.39

Tangible book value per share
$
11.11

 
10.86

 
11.24

 
11.17

 
10.88

Average basic common shares outstanding
9,995,054

 
9,984,344

 
9,962,571

 
9,922,024

 
9,916,114

Average diluted common shares outstanding
10,002,878

 
9,997,565

 
9,977,592

 
9,943,797

 
9,998,516

Shares outstanding at period end
10,009,642

 
9,998,025

 
9,993,695

 
9,937,262

 
9,931,788

 
 
 
 
 
 
 
 
 
 
Selected Financial Ratios
 
 
 
 
 
 
 
 
 
Return on average assets
1.01
%
 
1.10
%
 
0.87
 %
 
0.92
%
 
0.93
%
Return on average equity
9.10
%
 
9.91
%
 
7.82
 %
 
8.28
%
 
8.37
%
Dividend payout ratio
50.00
%
 
43.24
%
 
55.17
 %
 
53.33
%
 
53.33
%
Net interest margin (tax equivalent)
3.55
%
 
3.56
%
 
3.42
 %
 
3.55
%
 
3.49
%
Efficiency ratio (tax equivalent)
62.06
%
 
59.07
%
 
64.71
 %
 
63.73
%
 
64.74
%
 
 
 
 
 
 
 
 
 
 
Selected Balance Sheet Items
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
33,274

 
18,865

 
33,213

 
19,007

 
21,089

Investment securities and stock
371,501

 
368,032

 
394,798

 
399,345

 
393,976

 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
40,039

 
41,878

 
40,097

 
45,153

 
45,324

Commercial, secured by real estate
475,594

 
477,275

 
467,512

 
455,654

 
430,179

Residential real estate
260,853

 
265,788

 
268,574

 
266,625

 
271,812

Consumer
17,646

 
19,173

 
18,752

 
18,545

 
17,925

  Agricultural
15,459

 
14,802

 
15,872

 
13,605

 
12,589

Other, including deposit overdrafts
609

 
633

 
619

 
635

 
643

Deferred net origination costs
281

 
254

 
236

 
248

 
242

  Loans, gross
810,481

 
819,803

 
811,662

 
800,465

 
778,714

Less allowance for loan losses
3,328

 
3,575

 
3,798

 
3,373

 
3,150

  Loans, net
$
807,153

 
816,228

 
807,864

 
797,092

 
775,564

 
 
 
 
 
 
 
 
 
 
Total earning assets
$
1,200,544

 
1,188,322

 
1,222,614

 
1,201,563

 
1,180,719

Total assets
1,319,074

 
1,306,799

 
1,333,536

 
1,312,635

 
1,285,922

Total deposits
1,148,198

 
1,110,905

 
1,158,921

 
1,124,698

 
1,120,208

Short-term borrowings
15,957

 
42,040

 
16,989

 
30,541

 
11,668

Long-term debt
480

 
598

 
662

 
726

 
789

 
 
 
 
 
 
 
 
 
 





 
Three Months Ended
 
3/31/2017
 
12/31/2016
 
9/30/2016
 
6/30/2016
 
3/31/2016
Selected Balance Sheet Items, continued
 
 
 
 
 
 
 
 
Total shareholders’ equity
145,318

 
142,944

 
146,906

 
145,710

 
142,933

Equity to assets ratio
11.02
%
 
10.94
%
 
11.02
 %
 
11.10
%
 
11.12
%
Loans to deposits ratio
70.59
%
 
73.80
%
 
70.04
 %
 
71.17
%
 
69.52
%
 
 
 
 
 
 
 
 
 
 
Tangible common equity (TCE)
$
110,745

 
108,178

 
111,946

 
110,541

 
107,567

Tangible common assets (TCA)
1,284,501

 
1,272,033

 
1,298,576

 
1,277,466

 
1,250,556

TCE/TCA
8.62
%
 
8.50
%
 
8.62
 %
 
8.65
%
 
8.60
%
 
 
 
 
 
 
 
 
 
 
Selected Average Balance Sheet Items
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
26,672

 
28,422

 
32,011

 
29,399

 
27,533

Investment securities and stock
366,499

 
380,138

 
396,620

 
396,130

 
389,648

 
 
 
 
 
 
 
 
 
 
Loans
$
813,597

 
812,537

 
800,729

 
784,324

 
772,204

Less allowance for loan losses
3,557

 
3,654

 
3,382

 
3,103

 
3,130

Net loans
$
810,040

 
808,883

 
797,347

 
781,221

 
769,074

 
 
 
 
 
 
 
 
 
 
Total earning assets
$
1,188,383

 
1,204,360

 
1,212,232

 
1,193,585

 
1,171,709

Total assets
1,308,591

 
1,316,037

 
1,323,532

 
1,303,073

 
1,278,014

Total deposits
1,125,457

 
1,138,740

 
1,147,981

 
1,133,403

 
1,104,330

Short-term borrowings
28,500

 
20,406

 
16,328

 
14,355

 
20,710

Long-term debt
537

 
620

 
684

 
747

 
1,256

Total shareholders’ equity
144,672

 
146,602

 
147,371

 
144,185

 
142,447

Equity to assets ratio
11.06
%
 
11.14
%
 
11.13
 %
 
11.06
%
 
11.15
%
Loans to deposits ratio
72.29
%
 
71.35
%
 
69.75
 %
 
69.20
%
 
69.93
%
 
 
 
 
 
 
 
 
 
 
Asset Quality
 
 
 
 
 
 
 
 
 
Net charge-offs
$
262

 
278

 
(53
)
 
173

 
69

Other real estate owned
0

 
0

 
270

 
682

 
846

 
 
 
 
 
 
 
 
 
 
Non-accrual loans
3,869

 
5,725

 
4,619

 
2,697

 
3,328

Loans past due 90 days or more and still accruing
12

 
23

 
20

 
369

 
99

Total nonperforming loans
$
3,881

 
5,748

 
4,639

 
3,066

 
3,427

 
 
 
 
 
 
 
 
 
 
Net charge-offs to average loans
0.13
%
 
0.14
%
 
(0.03
)%
 
0.09
%
 
0.04
%
Allowance for loan losses to total loans
0.41
%
 
0.44
%
 
0.47
 %
 
0.42
%
 
0.40
%
Nonperforming loans to total loans
0.48
%
 
0.70
%
 
0.57
 %
 
0.38
%
 
0.44
%
Nonperforming assets to total assets
0.29
%
 
0.44
%
 
0.37
 %
 
0.29
%
 
0.33
%
 
 
 
 
 
 
 
 
 
 
Assets Under Management
 
 
 
 
 
 
 
 
 
LCNB Corp. total assets
$
1,319,074

 
1,306,799

 
1,333,536

 
1,312,635

 
1,285,922

Trust and investments (fair value)
316,856

 
303,534

 
293,808

 
284,118

 
274,297

Mortgage loans serviced
99,324

 
100,982

 
105,018

 
107,189

 
107,992

Business cash management
7,670

 
9,058

 
7,647

 
8,551

 
6,773

Brokerage accounts (fair value)
199,019

 
188,663

 
179,244

 
163,596

 
157,713

Total assets managed
$
1,941,943

 
1,909,036

 
1,919,253

 
1,876,089

 
1,832,697






LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS

(Dollars in thousands)
 
March 31, 2017 (Unaudited)
 
December 31, 2016
ASSETS:
 
 
 
Cash and due from banks
$
14,712

 
18,378

Interest-bearing demand deposits
18,562

 
487

Total cash and cash equivalents
33,274

 
18,865

Investment securities:
 

 
 

Available-for-sale, at fair value
326,676

 
320,659

Held-to-maturity, at cost
38,455

 
41,003

Federal Reserve Bank stock, at cost
2,732

 
2,732

Federal Home Loan Bank stock, at cost
3,638

 
3,638

Loans, net
807,153

 
816,228

Premises and equipment, net
33,157

 
30,244

Goodwill
30,183

 
30,183

Core deposit and other intangibles
4,390

 
4,582

Bank owned life insurance
27,496

 
27,307

Other assets
11,920

 
11,358

TOTAL ASSETS
$
1,319,074

 
1,306,799

 
 
 
 
LIABILITIES:
 

 
 

Deposits:
 

 
 

Noninterest-bearing
$
270,999

 
271,332

Interest-bearing
877,199

 
839,573

Total deposits
1,148,198

 
1,110,905

Short-term borrowings
15,957

 
42,040

Long-term debt
480

 
598

Accrued interest and other liabilities
9,121

 
10,312

TOTAL LIABILITIES
1,173,756

 
1,163,855

 
 
 
 
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 shares at March 31, 2017 and December 31, 2016; issued 10,763,269 and 10,751,652 shares at March 31, 2017 and December 31, 2016, respectively
76,691

 
76,490

Retained earnings
82,381

 
80,736

Treasury shares at cost, 753,627 shares at March 31, 2017 and December 31, 2016
(11,665
)
 
(11,665
)
Accumulated other comprehensive income, net of taxes
(2,089
)
 
(2,617
)
TOTAL SHAREHOLDERS' EQUITY
145,318

 
142,944

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$
1,319,074

 
1,306,799










LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
 
Three Months Ended 
 March 31,
 
2017
 
2016
INTEREST INCOME:
 
 
 
Interest and fees on loans
$
8,915

 
8,627

Interest on investment securities –
 
 
 
Taxable
1,093

 
1,189

Non-taxable
799

 
758

Other short-term investments
57

 
47

TOTAL INTEREST INCOME
10,864

 
10,621

INTEREST EXPENSE:
 

 
 

Interest on deposits
843

 
823

Interest on short-term borrowings
30

 
14

Interest on long-term debt
4

 
12

TOTAL INTEREST EXPENSE
877

 
849

NET INTEREST INCOME
9,987

 
9,772

PROVISION FOR LOAN LOSSES
15

 
90

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
9,972

 
9,682

NON-INTEREST INCOME:
 

 
 

Trust income
852

 
763

Service charges and fees on deposit accounts
1,222

 
1,193

Net gain (loss) on sales of securities

 
371

Bank owned life insurance income
189

 
169

Gains from sales of loans
39

 
41

Other operating income
128

 
105

TOTAL NON-INTEREST INCOME
2,430

 
2,642

NON-INTEREST EXPENSE:
 

 
 

Salaries and employee benefits
4,526

 
4,563

Equipment expenses
211

 
249

Occupancy expense, net
568

 
569

State franchise tax
284

 
281

Marketing
143

 
167

Amortization of intangibles
185

 
187

FDIC insurance premiums
104

 
165

Contracted services
248

 
227

Other real estate owned
5

 
29

Merger-related expenses

 

Other non-interest expense
1,694

 
1,855

TOTAL NON-INTEREST EXPENSE
7,968

 
8,292

INCOME BEFORE INCOME TAXES
4,434

 
4,032

PROVISION FOR INCOME TAXES
1,188

 
1,068

NET INCOME
$
3,246

 
2,964

 
 
 
 
Dividends declared per common share
$
0.16

 
0.16

Earnings per common share:
 

 
 

Basic
0.32

 
0.30

Diluted
0.32

 
0.30

Weighted average common shares outstanding:
 
 
 
Basic
9,995,054

 
9,916,114

Diluted
10,002,878

 
9,998,516