EX-99.2 3 lcnb-x8xkexhibit9922018qr1.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
 
3/31/2018
 
12/31/2017
 
9/30/2017
 
6/30/2017
 
3/31/2017
Condensed Income Statement
 
 
 
 
 
 
 
 
 
Interest income
$
11,142

 
11,610

 
11,055

 
10,934

 
10,864

Interest expense
954

 
953

 
908

 
861

 
877

Net interest income
10,188

 
10,657

 
10,147

 
10,073

 
9,987

Provision for loan losses
79

 
(10
)
 
(12
)
 
222

 
15

Net interest income after provision
10,109

 
10,667

 
10,159

 
9,851

 
9,972

Non-interest income
2,636

 
2,579

 
2,659

 
2,790

 
2,430

Non-interest expense
9,549

 
8,612

 
8,672

 
8,611

 
7,968

Income before income taxes
3,196

 
4,634

 
4,146

 
4,030

 
4,434

Provision for income taxes
483

 
1,017

 
1,040

 
1,027

 
1,188

Net income
$
2,713

 
3,617

 
3,106

 
3,003

 
3,246

Accreted income on acquired loans
$
96

 
606

 
90

 
180

 
220

Tax-equivalent net interest income
$
10,375

 
11,062

 
10,569

 
10,494

 
10,410

 
 
 
 
 
 
 
 
 
 
Per Share Data
 
 
 
 
 
 
 
 
 
Dividends per share
$
0.16

 
0.16

 
0.16

 
0.16

 
0.16

Basic earnings per common share
$
0.27

 
0.37

 
0.31

 
0.30

 
0.32

Diluted earnings per common share
$
0.27

 
0.36

 
0.31

 
0.30

 
0.32

Book value per share
$
14.80

 
14.99

 
14.94

 
14.77

 
14.52

Tangible book value per share
$
11.47

 
11.64

 
11.57

 
11.38

 
11.11

Average basic common shares outstanding
10,020,611

 
10,013,777

 
10,008,807

 
10,004,422

 
9,995,054

Average diluted common shares outstanding
10,028,588

 
10,020,566

 
10,015,204

 
10,011,312

 
10,002,878

Shares outstanding at period end
10,041,152

 
10,023,059

 
10,018,507

 
10,014,004

 
10,009,642

 
 
 
 
 
 
 
 
 
 
Selected Financial Ratios
 
 
 
 
 
 
 
 
 
Return on average assets
0.85
 %
 
1.11
 %
 
0.94
 %
 
0.91
%
 
1.01
%
Return on average equity
7.33
 %
 
9.49
 %
 
8.22
 %
 
8.15
%
 
9.10
%
Dividend payout ratio
59.26
 %
 
43.24
 %
 
51.61
 %
 
53.33
%
 
50.00
%
Net interest margin (tax equivalent)
3.59
 %
 
3.73
 %
 
3.52
 %
 
3.50
%
 
3.55
%
Efficiency ratio (tax equivalent)
73.39
 %
 
63.13
 %
 
65.56
 %
 
64.82
%
 
62.06
%
 
 
 
 
 
 
 
 
 
 
Selected Balance Sheet Items
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
17,494

 
25,386

 
21,203

 
29,967

 
33,274

Investment securities and stock
310,009

 
317,413

 
353,634

 
373,595

 
371,501

 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
37,118

 
36,057

 
36,049

 
38,651

 
40,039

Commercial, secured by real estate
542,890

 
527,947

 
510,158

 
495,255

 
475,594

Residential real estate
246,487

 
251,582

 
253,530

 
258,710

 
260,853

Consumer
17,176

 
17,450

 
17,956

 
17,475

 
17,646

  Agricultural
12,217

 
15,194

 
15,677

 
16,014

 
15,459

Other, including deposit overdrafts
506

 
539

 
570

 
547

 
609

Deferred net origination costs
263

 
291

 
264

 
281

 
281

  Loans, gross
856,657

 
849,060

 
834,204

 
826,933

 
810,481

Less allowance for loan losses
3,529

 
3,403

 
3,407

 
3,382

 
3,328

  Loans, net
$
853,128

 
845,657

 
830,797

 
823,551

 
807,153

 
 
 
 
 
 
 
 
 
 
Total earning assets
$
1,168,204

 
1,170,700

 
1,193,648

 
1,211,096

 
1,200,544

Total assets
1,288,791

 
1,295,638

 
1,314,319

 
1,335,571

 
1,319,074

Total deposits
1,123,463

 
1,085,821

 
1,121,523

 
1,143,920

 
1,148,198

Short-term borrowings
0

 
47,000

 
30,000

 
31,712

 
15,957






 
Three Months Ended
 
3/31/2018
 
12/31/2017
 
9/30/2017
 
6/30/2017
 
3/31/2017
Selected Balance Sheet Items, continued
 
 
 
 
 
 
 
 
Long-term debt
6,219

 
303

 
363

 
402

 
480

Total shareholders’ equity
148,584

 
150,271

 
149,713

 
147,927

 
145,318

Equity to assets ratio
11.53
 %
 
11.60
 %
 
11.39
 %
 
11.08
%
 
11.02
%
Loans to deposits ratio
76.25
 %
 
78.20
 %
 
74.38
 %
 
72.29
%
 
70.59
%
 
 
 
 
 
 
 
 
 
 
Tangible common equity (TCE)
$
114,801

 
116,289

 
115,527

 
113,542

 
110,745

Tangible common assets (TCA)
1,255,008

 
1,261,656

 
1,280,133

 
1,301,186

 
1,284,501

TCE/TCA
9.15
 %
 
9.22
 %
 
9.02
 %
 
8.73
%
 
8.62
%
 
 
 
 
 
 
 
 
 
 
Selected Average Balance Sheet Items
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
21,820

 
18,787

 
21,609

 
33,639

 
26,672

Investment securities and stock
313,689

 
332,225

 
363,039

 
373,295

 
366,499

 
 
 
 
 
 
 
 
 
 
Loans
$
853,152

 
840,526

 
824,183

 
811,186

 
813,597

Less allowance for loan losses
3,401

 
3,407

 
3,324

 
3,334

 
3,557

Net loans
$
849,751

 
837,119

 
820,859

 
807,852

 
810,040

 
 
 
 
 
 
 
 
 
 
Total earning assets
$
1,170,708

 
1,175,180

 
1,190,860

 
1,202,129

 
1,188,383

Total assets
1,292,375

 
1,295,293

 
1,313,476

 
1,321,442

 
1,308,591

Total deposits
1,114,979

 
1,096,966

 
1,133,072

 
1,148,206

 
1,125,457

Short-term borrowings
14,086

 
34,440

 
17,936

 
15,030

 
28,500

Long-term debt
2,255

 
323

 
383

 
441

 
537

Total shareholders’ equity
150,058

 
151,154

 
150,032

 
147,826

 
144,672

Equity to assets ratio
11.61
 %
 
11.67
 %
 
11.42
 %
 
11.19
%
 
11.06
%
Loans to deposits ratio
76.52
 %
 
76.62
 %
 
72.74
 %
 
70.65
%
 
72.29
%
 
 
 
 
 
 
 
 
 
 
Asset Quality
 
 
 
 
 
 
 
 
 
Net charge-offs (recoveries)
$
(47
)
 
(7
)
 
(36
)
 
168

 
262

Other real estate owned
0

 
0

 
0

 
0

 
0

 
 
 
 
 
 
 
 
 
 
Non-accrual loans
2,744

 
2,965

 
4,387

 
3,747

 
3,869

Loans past due 90 days or more and still accruing
146

 
0

 
95

 
141

 
12

Total nonperforming loans
$
2,890

 
2,965

 
4,482

 
3,888

 
3,881

 
 
 
 
 
 
 
 
 
 
Net charge-offs (recoveries) to average loans
(0.02
)%
 
0.00
 %
 
(0.02
)%
 
0.08
%
 
0.13
%
Allowance for loan losses to total loans
0.41
 %
 
0.40
 %
 
0.41
 %
 
0.41
%
 
0.41
%
Nonperforming loans to total loans
0.34
 %
 
0.35
 %
 
0.54
 %
 
0.47
%
 
0.48
%
Nonperforming assets to total assets
0.22
 %
 
0.23
 %
 
0.34
 %
 
0.29
%
 
0.29
%
 
 
 
 
 
 
 
 
 
 
Assets Under Management
 
 
 
 
 
 
 
 
 
LCNB Corp. total assets
$
1,288,791

 
1,295,638

 
1,314,319

 
1,335,571

 
1,319,074

Trust and investments (fair value)
359,766

 
362,486

 
326,642

 
315,450

 
316,856

Mortgage loans serviced
90,630

 
92,818

 
96,241

 
98,234

 
99,324

 Cash management
72,372

 
84,344

 
77,780

 
45,519

 
29,102

Brokerage accounts (fair value)
230,168

 
229,006

 
219,960

 
209,019

 
199,019

Total assets managed
$
2,041,727

 
2,064,292

 
2,034,942

 
2,003,793

 
1,963,375

 
 
 
 
 
 
 
 
 
 
Non-GAAP Financial Measures
 
 
 
 
 
 
 
 
 
Net income
$
2,713

 
3,617

 
3,106

 
3,003

 
3,246

Add: merger-related expenses, net of tax
621

 
87

 
0

 
0

 
0

Core net income
$
3,334

 
3,704

 
3,106

 
3,003

 
3,246

Basic core earnings per share
0.33

 
0.37

 
0.31

 
0.30

 
0.32

Diluted core earnings per share
0.33

 
0.37

 
0.31

 
0.30

 
0.32

Adjusted return on average assets
1.05
 %
 
1.16
 %
 
0.94
 %
 
0.91
%
 
1.01
%
Adjusted return on average equity
9.01
 %
 
9.94
 %
 
8.22
 %
 
8.15
%
 
9.1
%
Core efficiency ratio (tax equivalent)
66.67
 %
 
62.34
 %
 
65.56
 %
 
64.82
%
 
62.06
%





LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS

(Dollars in thousands)
 
March 31, 2018 (Unaudited)
 
December 31, 2017
ASSETS:
 
 
 
Cash and due from banks
$
12,713

 
21,159

Interest-bearing demand deposits
4,781

 
4,227

Total cash and cash equivalents
17,494

 
25,386

Investment securities:
 

 
 

Equity securities with a readily determinable fair value, at fair value
2,144

 
2,161

Equity securities without a readily determinable fair value, at cost
1,099

 
1,099

Debt securities, available-for-sale, at fair value
267,894

 
275,212

Debt securities, held-to-maturity, at cost
32,502

 
32,571

Federal Reserve Bank stock, at cost
2,732

 
2,732

Federal Home Loan Bank stock, at cost
3,638

 
3,638

Loans, net
853,128

 
845,657

Premises and equipment, net
34,595

 
34,927

Goodwill
30,183

 
30,183

Core deposit and other intangibles
3,600

 
3,799

Bank owned life insurance
28,171

 
27,985

Other assets
11,611

 
10,288

TOTAL ASSETS
$
1,288,791

 
1,295,638

 
 
 
 
LIABILITIES:
 

 
 

Deposits:
 

 
 

Noninterest-bearing
$
286,186

 
283,212

Interest-bearing
837,277

 
802,609

Total deposits
1,123,463

 
1,085,821

Short-term borrowings

 
47,000

Long-term debt
6,219

 
303

Accrued interest and other liabilities
10,525

 
12,243

TOTAL LIABILITIES
1,140,207

 
1,145,367

 
 
 
 
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, 2018 and December 31, 2017; issued 10,794,779 and 10,776,686 shares at March 31, 2018 and December 31, 2017, respectively
77,159

 
76,977

Retained earnings
88,933

 
87,301

Treasury shares at cost, 753,627 shares at March 31, 2018 and December 31, 2017
(11,665
)
 
(11,665
)
Accumulated other comprehensive loss, net of taxes
(5,843
)
 
(2,342
)
TOTAL SHAREHOLDERS' EQUITY
148,584

 
150,271

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$
1,288,791

 
1,295,638










LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
 
Three Months Ended 
March 31,
 
2018
 
2017
INTEREST INCOME:
 
 
 
Interest and fees on loans
9,413

 
8,915

Dividends on equity securities with a readily determinable fair value
15

 
15

Dividends on equity securities without a readily determinable fair value
7

 
6

Interest on debt securities, taxable
931

 
1,072

Interest on debt securities, non-taxable
704

 
799

Other short-term investments
72

 
57

TOTAL INTEREST INCOME
11,142

 
10,864

INTEREST EXPENSE:
 

 
 

Interest on deposits
871

 
843

Interest on short-term borrowings
69

 
30

Interest on long-term debt
14

 
4

TOTAL INTEREST EXPENSE
954

 
877

NET INTEREST INCOME
10,188

 
9,987

PROVISION FOR LOAN LOSSES
79

 
15

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
10,109

 
9,972

NON-INTEREST INCOME:
 

 
 

Fiduciary income
964

 
852

Service charges and fees on deposit accounts
1,305

 
1,222

Net gain on sales of securities

 

Bank owned life insurance income
186

 
189

Gains from sales of loans
22

 
39

Other operating income
159

 
128

TOTAL NON-INTEREST INCOME
2,636

 
2,430

NON-INTEREST EXPENSE:
 

 
 

Salaries and employee benefits
4,977

 
4,526

Equipment expenses
253

 
211

Occupancy expense, net
727

 
568

State financial institutions tax
303

 
284

Marketing
132

 
143

Amortization of intangibles
185

 
185

FDIC insurance premiums
99

 
104

Contracted services
315

 
248

Other real estate owned
2

 
5

Merger-related expenses
758

 

Other non-interest expense
1,798

 
1,694

TOTAL NON-INTEREST EXPENSE
9,549

 
7,968

INCOME BEFORE INCOME TAXES
3,196

 
4,434

PROVISION FOR INCOME TAXES
483

 
1,188

NET INCOME
2,713

 
3,246

 
 
 
 
Dividends declared per common share
0.16

 
0.16

Earnings per common share:
 

 
 

Basic
0.27

 
0.32

Diluted
0.27

 
0.32

Weighted average common shares outstanding:
 
 
 
Basic
10,020,611

 
9,995,054

Diluted
10,028,588

 
10,002,878







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