EX-99.2 3 lcnbform8-k06302024xex992.htm EX-99.2 Document





Exhibit 99.2
LCNB Corp. and Subsidiaries
Financial Highlights
 (Dollars in thousands, except per share amounts)
(Unaudited)
Three Months EndedSix Months Ended
06-30-202403-31-202412-31-202309-30-202306-30-202306-30-202406-30-2023
Condensed Income Statement
Interest income
$26,965 $24,758 $23,310 19,668 18,703 51,72336,621
Interest expense
11,748 10,863 8,651 6,097 4,526 22,6118,502
Net interest income
15,217 13,895 14,659 13,571 14,177 29,11228,119
Provision for (recovery of) credit losses
528 125 2,218 (114)30 653(27)
Net interest income after provision for (recovery of) credit losses
14,689 13,770 12,441 13,685 14,147 28,45928,146
Non-interest income
4,080 3,929 4,606 3,578 3,646 8,0097,227
Non-interest expense
17,825 15,472 17,576 12,244 12,078 33,29724,603
Income (loss) before income taxes
944 2,227 (529)5,019 5,715 3,17110,770
Provision for (benefit from) income taxes
19 312 (236)949 1,021 3311,919
Net income (loss)
$925 $1,915 $(293)$4,070 4,694 2,840 8,851 
Supplemental Income Statement Information
Amort/Accrete income on acquired loans
$1,248 $776 $410 — 2,02474
Amort/Accrete expenses on acquired interest-bearing liabilities$638 $459 $309 — 1,096
Tax-equivalent net interest income
$15,256 $13,933 $14,703 13,617 14,22329,18928,212
Per Share Data
Dividends per share
$0.22 $0.22 $0.22 0.21 0.210.440.42
Basic earnings (loss) per common share
$0.07 $0.15 $(0.02)0.37 0.420.210.79
Diluted earnings (loss) per common share
$0.07 $0.15 $(0.02)0.37 0.420.210.79
Book value per share
$17.33 $17.67 $17.86 18.10 18.2017.3318.20
Tangible book value per share
$10.08 $11.26 $11.42 12.72 12.8110.0812.81
Weighted average common shares outstanding:
Basic
14,033,264 13,112,302 12,378,289 11,038,720 11,056,30813,610,85411,122,371
Diluted
14,033,264 13,112,302 12,378,289 11,038,720 11,056,30813,610,85411,122,371
Shares outstanding at period end
14,151,755 13,224,276 13,173,569 11,123,382 11,116,08014,151,75511,116,080
Selected Financial Ratios
Return on average assets
0.15%0.34%(0.05)%0.82%0.98%0.24%0.93%
Return on average equity
1.53%3.28%(0.53)%7.92%9.22%2.38%8.78%
Return on average tangible common equity2.02%4.39%(0.72)%11.21%13.07%3.17%12.46%
Dividend payout ratio
314.29%146.67%NM56.76%50.00%209.52%53.16%
Net interest margin (tax equivalent)
2.86%2.72%2.99%3.04%3.28%2.80%3.28%
Efficiency ratio (tax equivalent)
92.19%86.62%91.02%71.21%67.59%89.51%69.42%
Selected Balance Sheet Items
Cash and cash equivalents
$34,872 $32,951 $39,723 43,422 26,020 
Debt and equity securities
312,241 306,775 318,723 309,094 314,763 
Loans:
Commercial and industrial$125,703 $122,229 $120,411 125,751 127,553 
Commercial, secured by real estate1,117,798 1,099,601 1,107,556 981,787 961,173 
Residential real estate458,949 398,250 459,073 313,286 312,338 
Consumer22,912 24,137 25,578 27,018 29,007 
Agricultural11,685 12,647 10,952 11,278 9,955 
Other, including deposit overdrafts233 73 82 80 69 
Deferred net origination fees(533)(583)(181)(796)(844)
  Loans, gross
1,736,747 1,656,354 1,723,471 1,458,404 1,439,251 
Less allowance for credit losses
11,270 10,557 10,525 7,932 7,956 
  Loans, net
$1,725,477 1,645,797 1,712,946 1,450,472 1,431,295 
Loans held for sale44,002 75,581 — — — 
NM - Not Meaningful







Three Months EndedSix Months Ended
06-30-202403-31-202412-31-202309-30-202306-30-202306-30-202406-30-2023
Selected Balance Sheet Items, continued
Allowance for Credit Losses on Loans:
Allowance for credit losses, beginning of period$10,557 10,525 7,932 7,956 7,858 
Fair value adjustment for purchased credit deteriorated loans189 — 493 — — 
Provision for credit losses
542 77 2,203 131 
Losses charged off(87)(78)(126)(57)(49)
Recoveries69 33 23 24 16 
Allowance for credit losses, end of period$11,270 10,557 10,525 7,932 7,956 
Total earning assets
$2,058,110 $1,971,130 $2,045,382 1,787,796 $1,756,157 
Total assets
2,371,313 2,283,151 2,291,592 1,981,668 1,950,763 
Total deposits
1,943,060 1,858,493 1,824,389 1,616,890 1,596,709 
Short-term borrowings
— 10,000 97,395 30,000 112,289 
Long-term debt
162,150 162,638 113,123 112,641 18,122 
Total shareholders’ equity
245,214 233,663 235,303 201,349 202,316 
Equity to assets ratio
10.34 %10.23 %10.27 %10.16 %10.37 %
Loans to deposits ratio
89.38 %89.12 %94.47 %90.20 %90.14 %
Tangible common equity (TCE)
$142,679 $145,850 $146,999 141,508 142,362 
Tangible common assets (TCA)
2,268,778 2,195,338 2,203,288 1,921,827 1,890,809 
TCE/TCA
6.29 %6.64 %6.67 %7.36 %7.53 %
Selected Average Balance Sheet Items
Cash and cash equivalents
$39,396 $51,366 $49,436 36,177 30,742 45,378 33,205 
Debt and equity securities
309,668 310,771 310,274 313,669 321,537 310,222 324,320 
Loans, including loans held for sale
$1,818,253 $1,722,568 $1,622,911 1,451,153 1,405,939 1,770,410 1,397,708 
Less allowance for credit losses on loans
11,386 10,523 8,826 7,958 7,860 10,954 7,692 
Net loans
$1,806,867 1,712,045 1,614,085 1,443,195 1,398,079 1,759,456 1,390,016 
Total earning assets, including loans held for sale
$2,142,064 $2,056,656 $1,952,121 1,775,713 1,737,256 2,099,362 1,733,160 
Total assets
2,404,782 2,294,766 2,182,477 1,971,269 1,927,956 2,349,774 1,925,004 
Total deposits
1,965,987 1,824,546 1,759,677 1,610,508 1,604,346 1,895,268 1,594,159 
Short-term borrowings
11,291 65,052 64,899 63,018 79,485 38,171 86,996 
Long-term debt
162,555 150,177 115,907 72,550 18,514 156,366 18,747 
Total shareholders’ equity
243,927 235,119 220,678 203,967 204,085 239,523 203,257 
Equity to assets ratio
10.14 %10.25 %10.11 %10.35 %10.59 %10.19 %10.56 %
Loans to deposits ratio
92.49 %94.41 %92.23 %90.11 %87.63 %93.41 %87.68 %
Asset Quality
Net charge-offs
$18 $45 $102 33 33 6349
Other real estate owned
— — — — — 
Non-accrual loans
$2,845 $2,719 $80 85 451 2,845 451 
Loans past due 90 days or more and still accruing
159 524 72 176 256 159 256 
Total nonperforming loans
$3,004 3,243 152 261 707 3,004 707 
Net charge-offs to average loans
0.00 %0.01 %0.02 %0.01 %0.01 %0.01 %0.01 %
Allowance for credit losses on loans to total loans
0.65 %0.64 %0.61 %0.54 %0.55 %
Nonperforming loans to total loans
0.17 %0.20 %0.01 %0.02 %0.05 %
Nonperforming assets to total assets
0.13 %0.14 %0.01 %0.01 %0.04 %







Three Months EndedSix Months Ended
06-30-202403-31-202412-31-202309-30-202306-30-202306-30-202406-30-2023
Assets Under Management
LCNB Corp. total assets
$2,371,313 2,283,151 2,291,592 1,981,668 1,950,763 
Trust and investments (fair value)
897,746 890,800 806,770 731,342 744,149 
Mortgage loans serviced
422,951 386,490 391,800 146,483 143,093 
Cash management
93,842 13,314 2,375 2,445 2,668 
Brokerage accounts (fair value)
419,646 411,211 392,390 368,854 384,889 
Total assets managed
$4,205,498 3,984,966 3,884,927 3,230,792 3,225,562 
Reconciliation of Net Income Less Tax-Effected Merger-Related Costs
Net income (loss)
$925 1,915 (293)4,070 4,694 2,840 8,851 
Merger expenses
2,320 775 3,914 302 415 3,095 440 
Provision for credit losses on non-PCD loans
763 — 1,722 — — 763 — 
Loss on sale of below-market acquired loans
843 — — — — 843 — 
Tax effect(773)(90)(1,102)(3)(63)(863)(67)
Adjusted net income
$4,078 2,600 4,241 4,369 5,046 6,678 9,224 
Adjusted basic and diluted earnings per share$0.29 $0.20 $0.34 0.40 0.45 0.490.82
Adjusted return on average assets0.68 %0.46 %0.77 %0.88 %1.05 %0.57 %0.97 %
Adjusted return on average equity6.72 %4.45 %7.62 %8.50 %9.92 %5.61 %9.15 %









Three Months Ended June 30,Three Months Ended March 31,
202420232024
Average
Outstanding
Balance
Interest
Earned/
Paid
Average
Yield/
Rate
Average
Outstanding
Balance
Interest
Earned/
Paid
Average
Yield/
Rate
Average
Outstanding
Balance
Interest
Earned/
Paid
Average
Yield/
Rate
Loans (1)$1,818,253 24,836 5.49 %$1,405,939 16,763 4.78 %$1,722,568 22,682 5.30 %
Interest-bearing demand deposits14,143 215 6.11 %9,780 144 5.91 %23,317 324 5.59 %
Federal Reserve Bank stock6,248 180 11.59 %4,652 140 12.07 %5,509 (4)(0.29)%
Federal Home Loan Bank stock20,152 367 7.32 %6,713 121 7.23 %16,239 341 8.45 %
Investment securities:
Equity securities4,985 39 3.15 %3,386 38 4.50 %4,995 40 3.22 %
Debt securities, taxable259,768 1,183 1.83 %282,325 1,323 1.88 %265,164 1,232 1.87 %
Debt securities, non-taxable (2)18,515 184 4.00 %24,461 220 3.61 %18,864 181 3.86 %
Total earnings assets2,142,064 27,004 5.07 %1,737,256 18,749 4.33 %2,056,656 24,796 4.85 %
Non-earning assets274,104 198,560 248,633 
Allowance for credit losses(11,386)(7,860)(10,523)
Total assets$2,404,782 $1,927,956 $2,294,766 
Interest-bearing demand and money market deposits$648,772 3,575 2.22 %$521,422 1,597 1.23 %$643,199 3,917 2.45 %
Savings deposits372,240 307 0.33 %395,367 134 0.14 %368,049 206 0.23 %
IRA and time certificates493,297 5,808 4.74 %215,403 1,604 2.99 %370,130 4,067 4.42 %
Short-term borrowings11,291 181 6.45 %79,485 1,008 5.09 %65,052 935 5.78 %
Long-term debt162,555 1,877 4.64 %18,514 183 3.96 %150,177 1,738 4.65 %
Total interest-bearing liabilities1,688,155 11,748 2.80 %1,230,191 4,526 1.48 %1,596,607 10,863 2.74 %
Demand deposits451,678 472,154 443,168 
Other liabilities21,022 21,526 19,872 
Equity243,927 204,085 235,119 
Total liabilities and equity$2,404,782 $1,927,956 $2,294,766 
Net interest rate spread (3)2.27 %2.85 %2.11 %
Net interest income and net interest margin on a taxable-equivalent basis (4)15,256 2.86 %14,223 3.28 %13,933 2.72 %
Ratio of interest-earning assets to interest-bearing liabilities126.89 %141.22 %128.81 %
(1)Includes non-accrual loans and loans held for sale
(2) Income from tax-exempt securities is included in interest income on a taxable-equivalent basis.  Interest income has been divided by a factor comprised of the complement of the incremental tax rate of 21%.
(3)The net interest spread is the difference between the average rate on total interest-earning assets and interest-bearing liabilities.
(4)The net interest margin is the taxable-equivalent net interest income divided by average interest-earning assets.








Exhibit 99.2
LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited, dollars in thousands)
June 30,
2024
December 31, 2023
ASSETS:
Cash and due from banks$25,750 36,535 
Interest-bearing demand deposits9,122 3,188 
Total cash and cash equivalents34,872 39,723 
Investment securities:
Equity securities with a readily determinable fair value, at fair value1,330 1,336 
Equity securities without a readily determinable fair value, at cost3,666 3,666 
Debt securities, available-for-sale, at fair value261,357 276,601 
Debt securities, held-to-maturity, at cost, net of allowance for credit losses of $7 and $5 at June 30, 2024 and December 31, 2023, respectively18,844 16,858 
Federal Reserve Bank stock, at cost6,334 5,086 
Federal Home Loan Bank stock, at cost20,710 15,176 
Loans, net of allowance for credit losses of $11,270 and 10,525 at June 30, 2024 and December 31, 2023, respectively1,725,477 1,712,946 
Loans held for sale44,002 — 
Premises and equipment, net40,766 36,302 
Operating lease right-of-use assets6,026 6,000 
Goodwill93,922 79,509 
Core deposit and other intangibles, net12,135 9,494 
Bank-owned life insurance53,510 49,847 
Interest receivable9,473 8,405 
Other assets, net38,889 30,643 
TOTAL ASSETS$2,371,313 2,291,592 
LIABILITIES:
Deposits:
Noninterest-bearing$449,110 462,267 
Interest-bearing1,493,950 1,362,122 
Total deposits1,943,060 1,824,389 
Short-term borrowings— 97,395 
Long-term debt162,150 113,123 
Operating lease liabilities6,290 6,261 
Accrued interest and other liabilities14,599 15,121 
TOTAL LIABILITIES2,126,099 2,056,289 
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 17,363,138 and 16,384,952 shares at June 30, 2024 and December 31, 2023, respectively; outstanding 14,151,755 and 13,173,569 shares at June 30, 2024 and December 31, 2023, respectively187,195 173,637 
Retained earnings136,883 140,017 
Treasury shares at cost, 3,211,383 shares at June 30, 2024 and December 31, 2023(56,015)(56,015)
Accumulated other comprehensive loss, net of taxes(22,849)(22,336)
TOTAL SHAREHOLDERS' EQUITY245,214 235,303 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$2,371,313 $2,291,592 







Exhibit 99.2
LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2024202320242023
INTEREST INCOME:
Interest and fees on loans$24,836 16,763 47,518 32,906 
Dividends on equity securities:
With a readily determinable fair value18 25 
Without a readily determinable fair value30 30 61 50 
Interest on debt securities:
Taxable1,183 1,323 2,415 2,666 
Non-taxable145 174 288 350 
Other investments762 405 1,423 624 
TOTAL INTEREST INCOME26,965 18,703 51,723 36,621 
INTEREST EXPENSE:
Interest on deposits9,690 3,335 17,880 5,791 
Interest on short-term borrowings181 1,008 1,116 2,312 
Interest on long-term debt1,877 183 3,615 399 
TOTAL INTEREST EXPENSE11,748 4,526 22,611 8,502 
NET INTEREST INCOME15,217 14,177 29,112 28,119 
PROVISION FOR (RECOVERY OF) CREDIT LOSSES528 30 653 (27)
NET INTEREST INCOME AFTER PROVISION FOR (RECOVERY OF) CREDIT LOSSES14,689 14,147 28,459 28,146 
NON-INTEREST INCOME:
Fiduciary income2,067 1,787 4,040 3,527 
Service charges and fees on deposit accounts1,537 1,445 2,921 2,927 
Net losses from sales of debt securities, available-for-sale— — (214)— 
Bank-owned life insurance income341 277 659 548 
Net gains from sales of loans50 572 
Other operating income85 134 31 216 
TOTAL NON-INTEREST INCOME4,080 3,646 8,009 7,227 
NON-INTEREST EXPENSE:
Salaries and employee benefits9,006 7,061 17,560 14,410 
Equipment expenses395 417 785 778 
Occupancy expense, net944 599 1,949 1,562 
State financial institutions tax476 396 904 793 
Marketing210 320 384 512 
Amortization of intangibles298 112 534 223 
FDIC insurance premiums, net394 224 898 439 
Contracted services844 666 1,628 1,307 
Merger-related expenses2,320 415 3,095 440 
Other non-interest expense2,938 1,868 5,560 4,139 
TOTAL NON-INTEREST EXPENSE17,825 12,078 33,297 24,603 
INCOME BEFORE INCOME TAXES944 5,715 3,171 10,770 
PROVISION FOR INCOME TAXES19 1,021 331 1,919 
NET INCOME$925 4,694 2,840 8,851 
Earnings per common share:
Basic$0.07 0.42 0.21 0.79 
Diluted$0.07 0.42 0.21 0.79 
Weighted average common shares outstanding:
Basic14,033,264 11,056,308 13,610,854 11,122,371 
Diluted14,033,264 11,056,308 13,610,854 11,122,371