EX-99.2 3 lcnbform8-k3312022xex992.htm EX-99.2 Document

Exhibit 99.2

LCNB Corp. and Subsidiaries
Financial Highlights
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended
Three Months Ended
3/31/2022
12/31/2021
9/30/2021
6/30/2021
3/31/2021
3/31/2022
3/31/2021
Condensed Income Statement
Interest income
$15,122 15,189 15,024 15,429 15,535 15,122 15,535 
Interest expense
899 879 951 1,060 1,163 899 1,163 
Net interest income
14,223 14,310 14,073 14,369 14,372 14,223 14,372 
Provision (credit) for loan losses
49 (508)306 (15)(52)49 (52)
Net interest income after provision (credit) for loan losses
14,174 14,818 13,767 14,384 14,424 14,174 14,424 
Non-interest income
3,550 4,347 4,106 4,314 3,465 3,550 3,465 
Non-interest expense
12,250 12,311 12,029 12,208 11,492 12,250 11,492 
Income before income taxes
5,474 6,854 5,844 6,490 6,397 5,474 6,397 
Provision for income taxes
951 1,227 1,027 1,200 1,157 951 1,157 
Net income
$4,523 5,627 4,817 5,290 5,240 4,523 5,240 
Amort/Accret income on acquired loans
$66 116 132 216 249 66 249 
Tax-equivalent net interest income
$14,273 14,365 14,129 14,427 14,432 14,273 14,432 
Per Share Data
Dividends per share
$0.20 0.20 0.19 0.19 0.19 0.20 0.19 
Basic earnings per common share
$0.38 0.45 0.39 0.41 0.41 0.38 0.41 
Diluted earnings per common share
$0.38 0.45 0.39 0.41 0.41 0.38 0.41 
Book value per share
$18.14 19.22 19.17 18.99 18.66 18.14 18.66 
Tangible book value per share
$12.84 14.33 14.28 14.15 13.87 12.84 13.87 
Weighted average common shares outstanding:
Basic
11,818,614 12,370,702 12,455,276 12,743,726 12,794,824 11,818,614 12,794,824 
Diluted
11,818,614 12,370,702 12,455,276 12,743,726 12,794,852 11,818,614 12,794,852 
Shares outstanding at period end
11,401,503 12,414,956 12,434,084 12,634,845 12,820,108 11,401,503 12,820,108 
Selected Financial Ratios
Return on average assets
0.96 %1.18 %1.02 %1.15 %1.20 %0.96 %1.20 %
Return on average equity
8.13 %9.33 %7.93 %8.78 %8.80 %8.13 %8.80 %
Return on average tangible common equity11.11 %12.51 %10.62 %11.76 %11.81 %11.11 %11.81 %
Dividend payout ratio
52.63 %44.44 %48.72 %46.34 %46.34 %52.63 %46.34 %
Net interest margin (tax equivalent)
3.35 %3.34 %3.32 %3.51 %3.68 %3.35 %3.68 %
Efficiency ratio (tax equivalent)
68.73 %65.79 %65.96 %65.14 %64.21 %68.73 %64.21 %
Selected Balance Sheet Items
Cash and cash equivalents
$19,941 18,136 23,852 22,909 41,144 
Debt and equity securities
330,715 345,649 352,066 349,199 276,774 
Loans:
Commercial and industrial
$105,805 101,792 91,246 97,240 107,630 
Commercial, secured by real estate
906,140 889,108 862,202 836,085 855,894 
Residential real estate
328,034 334,547 343,318 341,447 328,265 
Consumer
32,445 34,190 35,349 35,257 35,799 
  Agricultural
7,980 10,647 8,852 8,765 8,698 
Other, including deposit overdrafts
45 122 247 369 346 
Deferred net origination fees
(928)(961)(1,055)(1,398)(1,531)
  Loans, gross
1,379,521 13795210001,369,445 1,340,159 1,317,765 1,335,101 
Less allowance for loan losses
5,530 5,506 5,828 5,652 5,679 
  Loans, net
$1,373,991 1,363,939 1,334,331 1,312,113 1,329,422 


Three Months Ended
Three Months Ended
3/31/202212/31/20219/30/20216/30/20213/31/20213/31/20223/31/2021
Selected Balance Sheet Items, continued
Total earning assets
$1,712,115 1,716,420 1,695,281 1,671,462 1,634,818 
Total assets
1,899,630 1,903,629 1,884,252 1,856,670 1,818,321 
Total deposits
1,636,606 1,628,819 1,603,203 1,577,345 1,537,116 
Short-term borrowings
24,746 — — — — 
Long-term debt
10,000 10,000 15,000 15,000 17,000 
Total shareholders’ equity
206,875 238,604 238,419 239,952 239,246 
Equity to assets ratio
10.89 %12.53 %12.65 %12.92 %13.16 %
Loans to deposits ratio
84.29 %84.08 %83.59 %83.54 %86.86 %
Tangible common equity (TCE)
$146,360 177,949 177,501 178,771 177,805 
Tangible common assets (TCA)
1,839,115 1,842,974 1,823,334 1,795,489 1,756,880 
TCE/TCA
7.96 %9.66 %9.73 %9.96 %10.12 %
Selected Average Balance Sheet Items
Cash and cash equivalents
$32,826 29,614 34,557 45,414 37,269 32,826 37,269 
Debt and equity securities
340,666 348,150 356,214 312,596 260,147 340,666 260,147 
Loans
$1,376,926 1,351,762 1,321,629 1,328,760 1,313,803 1,376,926 1,313,803 
Less allowance for loan losses
5,503 5,843 5,567 5,678 5,715 5,503 5,715 
Net loans
$1,371,423 1,345,919 1,316,062 1,323,082 1,308,088 1,371,423 1,308,088 
Total earning assets
$1,727,335 1,708,392 1,688,589 1,666,126 1,589,582 1,727,335 1,589,582 
Total assets
1,917,226 1,896,530 1,879,314 1,852,035 1,775,154 1,917,226 1,775,154 
Total deposits
1,646,627 1,615,020 1,595,773 1,570,070 1,488,156 1,646,627 1,488,156 
Short-term borrowings
12,503 893 1,320 716 342 12,503 342 
Long-term debt
10,000 14,402 15,000 15,571 19,689 10,000 19,689 
Total shareholders’ equity
225,725 239,174 240,976 241,651 241,517 225,725 241,517 
Equity to assets ratio
11.77 %12.61 %12.82 %13.05 %13.61 %11.77 %13.61 %
Loans to deposits ratio
83.62 %83.70 %82.82 %84.63 %88.28 %83.62 %88.28 %
Asset Quality
Net charge-offs (recoveries)
$25 (186)$130 12 (3)25 (3)
Other real estate owned
— — — — — — — 
Non-accrual loans
$1,455 1,481 2,629 3,338 3,365 1,455 3,365 
Loans past due 90 days or more and still accruing
— 56 13 — — — — 
Total nonperforming loans
$1,455 1,537 $2,642 3,338 3,365 1,455 3,365 
Net charge-offs (recoveries) to average loans
0.01 %(0.05)%0.04 %0.00 %0.00 %0.01 %0.00 %
Allowance for loan losses to total loans
0.40 %0.40 %0.43 %0.43 %0.43 %0.40 %0.43 %
Nonperforming loans to total loans
0.11 %0.11 %0.20 %0.25 %0.25 %0.11 %0.25 %
Nonperforming assets to total assets
0.08 %0.08 %0.14 %0.18 %0.19 %0.08 %0.19 %
Assets Under Management
LCNB Corp. total assets
$1,899,630 1,903,629 1,884,252 1,856,670 1,818,321 
Trust and investments (fair value)
700,353 722,093 713,936 701,838 673,742 
Mortgage loans serviced
152,271 149,382 140,147 126,924 127,290 
Cash management
75,302 34,009 72,622 80,177 118,494 
Brokerage accounts (fair value)
326,290 334,670 319,495 314,491 299,355 
Total assets managed
$3,153,846 3,143,783 3,130,452 3,080,100 3,037,202 


LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS

(Dollars in thousands)
March 31, 2022 (Unaudited)
December 31, 2021
ASSETS:
Cash and due from banks$18,062 16,810 
Interest-bearing demand deposits1,879 1,326 
Total cash and cash equivalents19,941 18,136 
Investment securities:
Equity securities with a readily determinable fair value, at fair value2,424 2,546 
Equity securities without a readily determinable fair value, at cost2,099 2,099 
Debt securities, available-for-sale, at fair value293,464 308,177 
Debt securities, held-to-maturity, at cost22,873 22,972 
Federal Reserve Bank stock, at cost4,652 4,652 
Federal Home Loan Bank stock, at cost5,203 5,203 
Loans, net1,373,991 1,363,939 
Premises and equipment, net34,940 35,385 
Operating leases right of use asset6,191 6,357 
Goodwill59,221 59,221 
Core deposit and other intangibles2,328 2,473 
Bank owned life insurance43,488 43,224 
Interest receivable8,3647,999 
Other assets20,451 21,246 
TOTAL ASSETS$1,899,630 1,903,629 
LIABILITIES:  
Deposits:  
Noninterest-bearing$517,621 501,531 
Interest-bearing1,118,985 1,127,288 
Total deposits1,636,606 1,628,819 
Short-term borrowings24,746 — 
Long-term debt10,000 10,000 
Operating lease liabilities6,337 6,473 
Accrued interest and other liabilities15,066 19,733 
TOTAL LIABILITIES1,692,755 1,665,025 
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; issued 14,252,027 and 14,213,792 shares at March 31, 2022 and December 31, 2021, respectively; outstanding 11,401,503 and 12,414,956 shares at March 31, 2022 and December 31, 2021, respectively
143,432 143,130 
Retained earnings128,555 126,312 
Treasury shares at cost, 2,850,524 and 1,798,836 shares at March 31, 2022 and December 31, 2021, respectively
(50,115)(29,029)
Accumulated other comprehensive loss, net of taxes(14,997)(1,809)
TOTAL SHAREHOLDERS' EQUITY206,875 238,604 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$1,899,630 1,903,629 


LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended 
March 31,
 20222021
INTEREST INCOME:
Interest and fees on loans13,786 14,535 
Dividends on equity securities with a readily determinable fair value12 13 
Dividends on equity securities without a readily determinable fair value5 6 
Interest on debt securities, taxable1,095 718 
Interest on debt securities, non-taxable189 224 
Other investments35 39 
TOTAL INTEREST INCOME15,122 15,535 
INTEREST EXPENSE:  
Interest on deposits739 1,028 
Interest on short-term borrowings86 1 
Interest on long-term debt74 134 
TOTAL INTEREST EXPENSE899 1,163 
NET INTEREST INCOME14,223 14,372 
PROVISION (CREDIT) FOR LOAN LOSSES49 (52)
NET INTEREST INCOME AFTER PROVISION (CREDIT) FOR LOAN LOSSES14,174 14,424 
NON-INTEREST INCOME:  
Fiduciary income1,695 1,529 
Service charges and fees on deposit accounts1,406 1,366 
Bank owned life insurance income265 267 
Gains from sales of loans124 43 
Other operating income60 260 
TOTAL NON-INTEREST INCOME3,550 3,465 
NON-INTEREST EXPENSE:  
Salaries and employee benefits7,215 6,433 
Equipment expenses408 368 
Occupancy expense, net775 794 
State financial institutions tax436 444 
Marketing262 268 
Amortization of intangibles140 257 
FDIC insurance premiums, net126 113 
Contracted services610 540 
Other non-interest expense2,278 2,275 
TOTAL NON-INTEREST EXPENSE12,250 11,492 
INCOME BEFORE INCOME TAXES5,474 6,397 
PROVISION FOR INCOME TAXES951 1,157 
NET INCOME4,523 5,240 
Dividends declared per common share0.20 0.19 
Earnings per common share:
Basic0.38 0.41 
Diluted0.38 0.41 
Weighted average common shares outstanding:
Basic11,818,614 12,794,824 
Diluted11,818,614 12,794,852