EX-99.2 3 lcnb-x8xkexhibit9922017qr3.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
 
9/30/2017
 
6/30/2017
 
3/31/2017
 
12/31/2016
 
9/30/2016
 
9/30/2017
 
9/30/2016
Condensed Income Statement
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
$
11,055

 
10,934

 
10,864

 
11,226

 
10,895

 
32,853

 
32,524

Interest expense
908

 
861

 
877

 
887

 
885

 
2,646

 
2,617

Net interest income
10,147

 
10,073

 
9,987

 
10,339

 
10,010

 
30,207

 
29,907

Provision for loan losses
(12
)
 
222

 
15

 
55

 
372

 
225

 
858

Net interest income after provision
10,159

 
9,851

 
9,972

 
10,284

 
9,638

 
29,982

 
29,049

Non-interest income
2,659

 
2,790

 
2,430

 
2,615

 
2,846

 
7,879

 
8,238

Non-interest expense
8,672

 
8,611

 
7,968

 
7,908

 
8,593

 
25,251

 
25,353

Income before income taxes
4,146

 
4,030

 
4,434

 
4,991

 
3,891

 
12,610

 
11,934

Provision for income taxes
1,040

 
1,027

 
1,188

 
1,337

 
995

 
3,255

 
3,106

Net income
$
3,106

 
3,003

 
3,246

 
3,654

 
2,896

 
9,355

 
8,828

Accreted income on acquired loans
$
90

 
180

 
220

 
495

 
223

 
490

 
870

Tax-equivalent net interest income
$
10,569

 
10,494

 
10,410

 
10,772

 
10,432

 
31,487

 
31,136

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Per Share Data
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends per share
$
0.16

 
0.16

 
0.16

 
0.16

 
0.16

 
0.48

 
0.48

Basic earnings per common share
$
0.31

 
0.30

 
0.32

 
0.37

 
0.29

 
0.93

 
0.89

Diluted earnings per common share
$
0.31

 
0.30

 
0.32

 
0.37

 
0.29

 
0.93

 
0.88

Book value per share
$
14.94

 
14.77

 
14.52

 
14.30

 
14.70

 
14.94

 
14.70

Tangible book value per share
$
11.57

 
11.38

 
11.11

 
10.86

 
11.24

 
11.57

 
11.24

Average basic common shares outstanding
10,008,807

 
10,004,422

 
9,995,054

 
9,984,344

 
9,962,571

 
10,002,812

 
9,930,182

Average diluted common shares outstanding
10,015,204

 
10,011,312

 
10,002,878

 
9,997,565

 
9,977,592

 
10,009,942

 
9,974,319

Shares outstanding at period end
10,018,507

 
10,014,004

 
10,009,642

 
9,998,025

 
9,993,695

 
10,018,507

 
9,993,695

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Financial Ratios
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on average assets
0.94
 %
 
0.91
%
 
1.01
%
 
1.10
%
 
0.87
 %
 
0.95
%
 
0.91
%
Return on average equity
8.22
 %
 
8.15
%
 
9.10
%
 
9.91
%
 
7.82
 %
 
8.48
%
 
8.15
%
Dividend payout ratio
51.61
 %
 
53.33
%
 
50.00
%
 
43.24
%
 
55.17
 %
 
51.61
%
 
53.93
%
Net interest margin (tax equivalent)
3.52
 %
 
3.50
%
 
3.55
%
 
3.56
%
 
3.42
 %
 
3.53
%
 
3.49
%
Efficiency ratio (tax equivalent)
65.56
 %
 
64.82
%
 
62.06
%
 
59.07
%
 
64.71
 %
 
64.14
%
 
64.39
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Balance Sheet Items
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
21,203

 
29,967

 
33,274

 
18,865

 
33,213

 
 
 
 
Investment securities and stock
353,634

 
373,595

 
371,501

 
368,032

 
394,798

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
36,049

 
38,651

 
40,039

 
41,878

 
40,097

 
 
 
 
Commercial, secured by real estate
510,158

 
495,255

 
475,594

 
477,275

 
467,512

 
 
 
 
Residential real estate
253,530

 
258,710

 
260,853

 
265,788

 
268,574

 
 
 
 
Consumer
17,956

 
17,475

 
17,646

 
19,173

 
18,752

 
 
 
 
  Agricultural
15,677

 
16,014

 
15,459

 
14,802

 
15,872

 
 
 
 
Other, including deposit overdrafts
570

 
547

 
609

 
633

 
619

 
 
 
 
Deferred net origination costs
264

 
281

 
281

 
254

 
236

 
 
 
 
  Loans, gross
834,204

 
826,933

 
810,481

 
819,803

 
811,662

 
 
 
 
Less allowance for loan losses
3,407

 
3,382

 
3,328

 
3,575

 
3,798

 
 
 
 
  Loans, net
$
830,797

 
823,551

 
807,153

 
816,228

 
807,864

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 





 
Three Months Ended
 
Nine Months Ended
 
9/30/2017
 
6/30/2017
 
3/31/2017
 
12/31/2016
 
9/30/2016
 
9/30/2017
 
9/30/2016
Selected Balance Sheet Items, continued
 
 
 
 
 
 
 
 
 
 
 
 
Total earning assets
$
1,193,648

 
1,211,096

 
1,200,544

 
1,188,322

 
1,222,614

 
 
 
 
Total assets
1,314,319

 
1,335,571

 
1,319,074

 
1,306,799

 
1,333,536

 
 
 
 
Total deposits
1,121,523

 
1,143,920

 
1,148,198

 
1,110,905

 
1,158,921

 
 
 
 
Short-term borrowings
30,000

 
31,712

 
15,957

 
42,040

 
16,989

 
 
 
 
Long-term debt
363

 
402

 
480

 
598

 
662

 
 
 
 
Total shareholders’ equity
149,713

 
147,927

 
145,318

 
142,944

 
146,906

 
 
 
 
Equity to assets ratio
11.39
 %
 
11.08
%
 
11.02
%
 
10.94
%
 
11.02
 %
 
 
 
 
Loans to deposits ratio
74.38
 %
 
72.29
%
 
70.59
%
 
73.80
%
 
70.04
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tangible common equity (TCE)
$
115,527

 
113,542

 
110,745

 
108,178

 
111,946

 
 
 
 
Tangible common assets (TCA)
1,280,133

 
1,301,186

 
1,284,501

 
1,272,033

 
1,298,576

 
 
 
 
TCE/TCA
9.02
 %
 
8.73
%
 
8.62
%
 
8.50
%
 
8.62
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Average Balance Sheet Items
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
21,609

 
33,639

 
26,672

 
28,422

 
32,011

 
27,289

 
29,656

Investment securities and stock
363,039

 
373,295

 
366,499

 
380,138

 
396,620

 
367,598

 
394,141

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans
$
824,183

 
811,186

 
813,597

 
812,537

 
800,729

 
816,361

 
785,807

Less allowance for loan losses
3,324

 
3,334

 
3,557

 
3,654

 
3,382

 
3,404

 
3,206

Net loans
$
820,859

 
807,852

 
810,040

 
808,883

 
797,347

 
812,957

 
782,601

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total earning assets
$
1,190,860

 
1,202,129

 
1,188,383

 
1,204,360

 
1,212,232

 
1,193,800

 
1,192,580

Total assets
1,313,476

 
1,321,442

 
1,308,591

 
1,316,037

 
1,323,532

 
1,314,476

 
1,301,620

Total deposits
1,133,072

 
1,148,206

 
1,125,457

 
1,138,740

 
1,147,981

 
1,135,605

 
1,128,642

Short-term borrowings
17,936

 
15,030

 
28,500

 
20,406

 
16,328

 
20,450

 
17,128

Long-term debt
383

 
441

 
537

 
620

 
684

 
453

 
895

Total shareholders’ equity
150,032

 
147,826

 
144,672

 
146,602

 
147,371

 
147,530

 
144,678

Equity to assets ratio
11.42
 %
 
11.19
%
 
11.06
%
 
11.14
%
 
11.13
 %
 
11.22
%
 
11.12
%
Loans to deposits ratio
72.74
 %
 
70.65
%
 
72.29
%
 
71.35
%
 
69.75
 %
 
71.89
%
 
69.62
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset Quality
 
 
 
 
 
 
 
 
 
 
 
 
 
Net charge-offs (recoveries)
$
(36
)
 
168

 
262

 
278

 
(53
)
 
394

 
189

Other real estate owned
0

 
0

 
0

 
0

 
270

 
0

 
270

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-accrual loans
4,387

 
3,747

 
3,869

 
5,725

 
4,619

 
4,387

 
4,619

Loans past due 90 days or more and still accruing
95

 
141

 
12

 
23

 
20

 
95

 
20

Total nonperforming loans
$
4,482

 
3,888

 
3,881

 
5,748

 
4,639

 
4,482

 
4,639

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net charge-offs (recoveries) to average loans
(0.02
)%
 
0.08
%
 
0.13
%
 
0.14
%
 
(0.03
)%
 
0.10
%
 
0.05
%
Allowance for loan losses to total loans
0.41
 %
 
0.41
%
 
0.41
%
 
0.44
%
 
0.47
 %
 
0.41
%
 
0.47
%
Nonperforming loans to total loans
0.54
 %
 
0.47
%
 
0.48
%
 
0.70
%
 
0.57
 %
 
0.54
%
 
0.57
%
Nonperforming assets to total assets
0.34
 %
 
0.29
%
 
0.29
%
 
0.44
%
 
0.37
 %
 
0.34
%
 
0.37
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets Under Management
 
 
 
 
 
 
 
 
 
 
 
 
 
LCNB Corp. total assets
$
1,314,319

 
1,335,571

 
1,319,074

 
1,306,799

 
1,333,536

 
 
 
 
Trust and investments (fair value)
326,642

 
315,450

 
316,856

 
303,534

 
293,808

 
 
 
 
Mortgage loans serviced
96,241

 
98,234

 
99,324

 
100,982

 
105,018

 
 
 
 
 Cash management
77,780

 
45,519

 
29,102

 
30,319

 
27,453

 
 
 
 
Brokerage accounts (fair value)
219,960

 
209,019

 
199,019

 
188,663

 
179,244

 
 
 
 
Total assets managed
$
2,034,942

 
2,003,793

 
1,963,375

 
1,930,297

 
1,939,059

 
 
 
 





LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS

(Dollars in thousands)
 
September 30, 2017 (Unaudited)
 
December 31, 2016
ASSETS:
 
 
 
Cash and due from banks
$
15,393

 
18,378

Interest-bearing demand deposits
5,810

 
487

Total cash and cash equivalents
21,203

 
18,865

Investment securities:
 

 
 

Available-for-sale, at fair value
310,404

 
320,659

Held-to-maturity, at cost
36,860

 
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
830,797

 
816,228

Premises and equipment, net
34,897

 
30,244

Goodwill
30,183

 
30,183

Core deposit and other intangibles
4,003

 
4,582

Bank owned life insurance
27,795

 
27,307

Other assets
11,807

 
11,358

TOTAL ASSETS
$
1,314,319

 
1,306,799

 
 
 
 
LIABILITIES:
 

 
 

Deposits:
 

 
 

Noninterest-bearing
$
278,773

 
271,332

Interest-bearing
842,750

 
839,573

Total deposits
1,121,523

 
1,110,905

Short-term borrowings
30,000

 
42,040

Long-term debt
363

 
598

Accrued interest and other liabilities
12,720

 
10,312

TOTAL LIABILITIES
1,164,606

 
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 September 30, 2017 and December 31, 2016; issued 10,772,134 and 10,751,652 shares at September 30, 2017 and December 31, 2016, respectively
76,877

 
76,490

Retained earnings
85,287

 
80,736

Treasury shares at cost, 753,627 shares at September 30, 2017 and December 31, 2016
(11,665
)
 
(11,665
)
Accumulated other comprehensive income (loss), net of taxes
(786
)
 
(2,617
)
TOTAL SHAREHOLDERS' EQUITY
149,713

 
142,944

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$
1,314,319

 
1,306,799










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,
 
2017
 
2016
 
2017
 
2016
INTEREST INCOME:
 
 
 
 
 
 
 
Interest and fees on loans
$
9,095

 
8,876

 
26,833

 
26,395

Interest on investment securities –
 
 
 
 
 
 
 
Taxable
1,108

 
1,152

 
3,350

 
3,528

Non-taxable
783

 
813

 
2,377

 
2,365

Other short-term investments
69

 
54

 
293

 
236

TOTAL INTEREST INCOME
11,055

 
10,895

 
32,853

 
32,524

INTEREST EXPENSE:
 

 
 

 
 

 
 

Interest on deposits
850

 
872

 
2,539

 
2,565

Interest on short-term borrowings
55

 
8

 
97

 
30

Interest on long-term debt
3

 
5

 
10

 
22

TOTAL INTEREST EXPENSE
908

 
885

 
2,646

 
2,617

NET INTEREST INCOME
10,147

 
10,010

 
30,207

 
29,907

PROVISION FOR LOAN LOSSES
(12
)
 
372

 
225

 
858

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
10,159

 
9,638

 
29,982

 
29,049

NON-INTEREST INCOME:
 

 
 

 
 

 
 

Trust income
871

 
871

 
2,604

 
2,471

Service charges and fees on deposit accounts
1,352

 
1,276

 
3,886

 
3,712

Net gain (loss) on sales of securities
78

 
307

 
218

 
957

Bank owned life insurance income
190

 
193

 
676

 
553

Gains from sales of loans
34

 
73

 
136

 
175

Other operating income
134

 
126

 
359

 
370

TOTAL NON-INTEREST INCOME
2,659

 
2,846

 
7,879

 
8,238

NON-INTEREST EXPENSE:
 

 
 

 
 

 
 

Salaries and employee benefits
4,678

 
4,642

 
13,907

 
13,737

Equipment expenses
361

 
279

 
836

 
767

Occupancy expense, net
685

 
550

 
1,889

 
1,707

State franchise tax
281

 
279

 
851

 
836

Marketing
282

 
162

 
641

 
530

Amortization of intangibles
189

 
189

 
562

 
564

FDIC insurance premiums
108

 
168

 
320

 
495

Contracted services
307

 
300

 
930

 
750

Other real estate owned
3

 
222

 
8

 
607

Other non-interest expense
1,778

 
1,802

 
5,307

 
5,360

TOTAL NON-INTEREST EXPENSE
8,672

 
8,593

 
25,251

 
25,353

INCOME BEFORE INCOME TAXES
4,146

 
3,891

 
12,610

 
11,934

PROVISION FOR INCOME TAXES
1,040

 
995

 
3,255

 
3,106

NET INCOME
$
3,106

 
2,896

 
9,355

 
8,828

 
 
 
 
 
 
 
 
Dividends declared per common share
$
0.16

 
0.16

 
0.48

 
0.48

Earnings per common share:
 

 
 

 
 

 
 

Basic
0.31

 
0.29

 
0.93

 
0.89

Diluted
0.31

 
0.29

 
0.93

 
0.88

Weighted average common shares outstanding:
 
 
 
 
 
 
 
Basic
10,008,807

 
9,962,571

 
10,002,812

 
9,930,182

Diluted
10,015,204

 
9,977,592

 
10,009,942

 
9,974,319







Contacts
LCNB Corp.
Steve P. Foster, CEO & President, 800-344-BANK
Robert C. Haines II, Executive Vice President and CFO, 800-344-BANK