EX-99.2 3 exhibit9922014qr3.htm EXHIBIT Exhibit 99.2 2014Qr3


Exhibit 99.2

LCNB Corp. and Subsidiaries
Financial Highlights
(Dollars in thousands, except per share amounts)
 
Three Months Ended
 
Nine Months Ended
 
9/30/2014
 
6/30/2014
 
3/31/2014
 
12/31/2013
 
9/30/2013
 
9/30/2014
 
9/30/2013
Condensed Income Statement
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
$
9,906

 
9,926

 
9,278

 
8,566

 
8,450

 
29,110

 
24,931

Interest expense
911

 
920

 
915

 
927

 
995

 
2,746

 
3,138

Net interest income
8,995

 
9,006

 
8,363

 
7,639

 
7,455

 
26,364

 
21,793

Provision for loan losses
401

 
255

 
81

 
219

 
178

 
737

 
369

Net interest income after provision
8,594

 
8,751

 
8,282

 
7,420

 
7,277

 
25,627

 
21,424

Non-interest income
2,315

 
2,301

 
2,077

 
2,358

 
2,047

 
6,693

 
6,732

Non-interest expense
7,238

 
7,600

 
8,672

 
6,634

 
6,163

 
23,510

 
19,578

Income before income taxes
3,671

 
3,452

 
1,687

 
3,144

 
3,161

 
8,810

 
8,578

Provision for income taxes
953

 
841

 
364

 
797

 
804

 
2,158

 
2,145

Net income
$
2,718

 
2,611

 
1,323

 
2,347

 
2,357

 
6,652

 
6,433

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Per Share Data
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends per share
$
0.16

 
0.16

 
0.16

 
0.16

 
0.16

 
0.48

 
0.48

Basic earnings per share
$
0.30

 
0.28

 
0.14

 
0.27

 
0.31

 
0.72

 
0.85

Diluted earnings per share
$
0.29

 
0.28

 
0.14

 
0.27

 
0.30

 
0.71

 
0.83

Book value per share
$
13.24

 
13.18

 
12.89

 
12.80

 
12.07

 
13.24

 
12.07

Tangible book value per share
$
9.80

 
9.71

 
9.44

 
11.02

 
9.93

 
9.80

 
9.93

Average basic shares outstanding
9,299,691

 
9,293,382

 
9,288,400

 
8,623,134

 
7,636,098

 
9,293,866

 
7,592,818

Average diluted shares outstanding
9,405,013

 
9,402,343

 
9,413,049

 
8,755,416

 
7,787,098

 
9,407,110

 
7,722,686

Shares outstanding at period end
9,305,208

 
9,298,270

 
9,292,226

 
9,287,536

 
7,640,163

 
9,305,208

 
7,640,163

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Financial Ratios
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on average assets
0.95
%
 
0.91
%
 
0.50
%
 
0.98
%
 
0.99
%
 
0.79
%
 
0.91
%
Return on average equity
8.71
%
 
8.60
%
 
4.47
%
 
8.48
%
 
10.27
%
 
7.30
%
 
9.24
%
Dividend payout ratio
53.33
%
 
57.14
%
 
114.29
%
 
59.26
%
 
51.61
%
 
66.67
%
 
56.47
%
Net interest margin (tax equivalent)
3.57
%
 
3.59
%
 
3.66
%
 
3.63
%
 
3.57
%
 
3.60
%
 
3.55
%
Efficiency ratio
64.00
%
 
67.21
%
 
83.07
%
 
66.36
%
 
64.86
%
 
71.12
%
 
68.63
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Balance Sheet Items
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment securities and stock
$
322,341

 
357,567

 
331,771

 
279,021

 
296,819

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans
$
685,915

 
691,719

 
685,196

 
574,354

 
566,109

 
 
 
 
Less allowance for loan losses
3,298

 
3,394

 
3,370

 
3,588

 
3,423

 
 
 
 
Net loans
$
682,617

 
688,325

 
681,826

 
570,766

 
562,686

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
1,123,356

 
1,151,109

 
1,133,508

 
932,338

 
942,349

 
 
 
 
Total deposits
956,633

 
986,824

 
984,514

 
785,761

 
808,335

 
 
 
 
Short-term borrowings
24,954

 
23,523

 
11,215

 
8,655

 
22,811

 
 
 
 
Long-term debt
11,432

 
11,506

 
11,580

 
12,102

 
12,446

 
 
 
 
Total shareholders’ equity
123,179

 
122,584

 
119,761

 
118,873

 
92,215

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tangible common equity (TCE)
$
91,203

 
89,800

 
87,017

 
101,893

 
75,353

 
 
 
 
Tangible common assets (TCA)
1,091,380

 
1,118,325

 
1,100,764

 
915,358

 
925,487

 
 
 
 
TCE/TA
8.36
%
 
8.03
%
 
7.91
%
 
11.13
%
 
8.14
%
 
 
 
 
Loans to deposit ratio
71.70
%
 
70.10
%
 
69.60
%
 
73.10
%
 
70.03
%
 
 
 
 
Equity to assets ratio
10.97
%
 
10.65
%
 
10.57
%
 
12.75
%
 
9.79
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 





 
Three Months Ended
 
Nine Months Ended
 
9/30/2014
 
6/30/2014
 
3/31/2014
 
12/31/2013
 
9/30/2013
 
9/30/2014
 
9/30/2013
Asset Quality
 
 
 
 
 
 
 
 
 
 
 
 
 
Net charge-offs
$
496

 
232

 
299

 
54

 
181

 
 
 
 
Other real estate owned
1,460

 
1,906

 
1,799

 
1,463

 
1,561

 
 
 
 
Non-accrual loans
6,264

 
6,243

 
5,374

 
2,961

 
2,828

 
 
 
 
Loans past due 90 days or more and still accruing
111

 
130

 
825

 
250

 
29

 
 
 
 
Total nonperforming loans
$
6,375

 
6,373

 
6,199

 
3,211

 
2,857

 
 
 
 
Net charge-offs to average loans
0.29
%
 
0.14
%
 
0.19
%
 
0.04
%
 
0.13
%
 
 
 
 
Allowance for loan losses to total loans
0.48
%
 
0.49
%
 
0.49
%
 
0.62
%
 
0.60
%
 
 
 
 
Nonperforming loans to total loans
0.93
%
 
0.92
%
 
0.90
%
 
0.56
%
 
0.50
%
 
 
 
 
Nonperforming assets to total assets
0.70
%
 
0.72
%
 
0.71
%
 
0.50
%
 
0.47
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-GAAP Financial Measures
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
$
2,718

 
2,611

 
1,323

 
2,347

 
2,357

 
6,652

 
6,433

Less (add) net gain (loss) on sales of securities, net of tax
64

 
0

 
(3
)
 
203

 
38

 
61

 
497

Add merger-related expenses, net of tax
3

 
46

 
853

 
101

 
0

 
902

 
913

Core net income
$
2,657

 
2,657

 
2,179

 
2,245

 
2,319

 
7,493

 
6,849

Basic core earnings per share
$
0.29

 
0.29

 
0.23

 
0.26

 
0.30

 
0.81

 
0.90

Diluted core earnings per share
$
0.28

 
0.28

 
0.23

 
0.26

 
0.30

 
0.80

 
0.89

Adjusted return on average assets
0.92
%
 
0.93
%
 
0.82
%
 
0.93
%
 
0.97
%
 
0.89
%
 
0.97
%
Adjusted return on average equity
8.43
%
 
8.67
%
 
7.32
%
 
8.08
%
 
10.06
%
 
8.17
%
 
9.81
%
Core efficiency ratio
64.51
%
 
66.60
%
 
70.66
%
 
67.37
%
 
65.26
%
 
67.18
%
 
65.72
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 








LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)

 
 
September 30, 2014
 
December 31,
2013
 
 
(Unaudited)
 
ASSETS:
 
 
 
 
Cash and due from banks
 
$
13,388

 
10,410

Interest-bearing demand deposits
 
19,665

 
4,278

Total cash and cash equivalents
 
33,053

 
14,688

Investment securities:
 
 

 
 

Available-for-sale, at fair value
 
292,853

 
258,241

Held-to-maturity, at cost
 
23,504

 
16,323

Federal Reserve Bank stock, at cost
 
2,346

 
1,603

Federal Home Loan Bank stock, at cost
 
3,638

 
2,854

Loans, net
 
682,617

 
570,766

Premises and equipment, net
 
20,907

 
19,897

Goodwill
 
27,638

 
14,186

Bank owned life insurance
 
21,773

 
21,280

Other assets
 
15,027

 
12,500

TOTAL ASSETS
 
$
1,123,356

 
932,338

LIABILITIES:
 
 

 
 

Deposits:
 
 

 
 

Noninterest-bearing
 
$
190,875

 
164,912

Interest-bearing
 
765,758

 
620,849

Total deposits
 
956,633

 
785,761

Short-term borrowings
 
24,954

 
8,655

Long-term debt
 
11,432

 
12,102

Accrued interest and other liabilities
 
7,158

 
6,947

TOTAL LIABILITIES
 
1,000,177

 
813,465

SHAREHOLDERS' EQUITY:
 
 

 
 

Preferred shares – no par value, authorized 1,000,000 shares, none outstanding
 

 

Common shares – no par value, authorized 12,000,000 shares, issued 10,058,835 and 10,041,163 shares at September 30, 2014 and December 31, 2013, respectively
 
67,086

 
66,785

Retained earnings
 
67,667

 
65,475

Treasury shares at cost, 753,627 shares at September 30, 2014 and December 31, 2013
 
(11,665
)
 
(11,665
)
Accumulated other comprehensive loss, net of taxes
 
91

 
(1,722
)
TOTAL SHAREHOLDERS' EQUITY
 
123,179

 
118,873

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
 
$
1,123,356

 
932,338










LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
 
 
Three Months Ended 
 September 30,
 
Nine Months Ended 
 September 30,
 
 
2014
 
2013
 
2014
 
2013
INTEREST INCOME:
 
 
 
 
 
 
 
 
Interest and fees on loans
 
$
8,168

 
6,902

 
24,008

 
20,298

Interest on investment securities –
 
 

 
 

 
 

 
 

Taxable
 
984

 
862

 
2,901

 
2,556

Non-taxable
 
716

 
654

 
2,019

 
1,932

Other short-term investments
 
38

 
32

 
182

 
145

TOTAL INTEREST INCOME
 
9,906

 
8,450

 
29,110

 
24,931

INTEREST EXPENSE:
 
 

 
 

 
 

 
 

Interest on deposits
 
800

 
875

 
2,423

 
2,789

Interest on short-term borrowings
 
10

 
11

 
18

 
18

Interest on long-term debt
 
101

 
109

 
305

 
331

TOTAL INTEREST EXPENSE
 
911

 
995

 
2,746

 
3,138

NET INTEREST INCOME
 
8,995

 
7,455

 
26,364

 
21,793

PROVISION FOR LOAN LOSSES
 
401

 
178

 
737

 
369

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
 
8,594

 
7,277

 
25,627

 
21,424

NON-INTEREST INCOME:
 
 

 
 

 
 

 
 

Trust income
 
688

 
626

 
2,071

 
1,810

Service charges and fees on deposit accounts
 
1,245

 
1,062

 
3,619

 
3,114

Net gain (loss) on sales of securities
 
97

 
58

 
93

 
753

Bank owned life insurance income
 
165

 
168

 
507

 
512

Gains from sales of mortgage loans
 
24

 
57

 
92

 
305

Other operating income
 
96

 
76

 
311

 
238

TOTAL NON-INTEREST INCOME
 
2,315

 
2,047

 
6,693

 
6,732

NON-INTEREST EXPENSE:
 
 

 
 

 
 

 
 

Salaries and employee benefits
 
4,022

 
3,247

 
11,896

 
9,783

Equipment expenses
 
337

 
318

 
976

 
908

Occupancy expense, net
 
541

 
505

 
1,706

 
1,529

State franchise tax
 
231

 
208

 
714

 
635

Marketing
 
212

 
145

 
541

 
446

FDIC insurance premiums
 
183

 
128

 
492

 
375

Merger-related expenses
 
4

 

 
1,366

 
1,326

Other non-interest expense
 
1,708

 
1,612

 
5,819

 
4,576

TOTAL NON-INTEREST EXPENSE
 
7,238

 
6,163

 
23,510

 
19,578

INCOME BEFORE INCOME TAXES
 
3,671

 
3,161

 
8,810

 
8,578

PROVISION FOR INCOME TAXES
 
953

 
804

 
2,158

 
2,145

NET INCOME
 
$
2,718

 
2,357

 
6,652

 
6,433

Dividends declared per common share
 
$
0.16

 
0.16

 
0.48

 
0.48

Earnings per common share:
 
 

 
 

 
 

 
 

Basic
 
$
0.30

 
0.31

 
0.72

 
0.85

Diluted
 
0.29

 
0.30

 
0.71

 
0.83

Weighted average common shares outstanding:
 
 

 
 

 
 

 
 

Basic
 
9,299,691

 
7,636,098

 
9,293,866

 
7,592,818

Diluted
 
9,405,013

 
7,787,098

 
9,407,110

 
7,722,686