EX-99.2 3 lcnb-x8xkexhibit9922017qr4.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
 
 Year Ended
 
12/31/2017
 
9/30/2017
 
6/30/2017
 
3/31/2017
 
12/31/2016
 
12/31/2017
 
12/31/2016
Condensed Income Statement
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
$
11,610

 
11,055

 
10,934

 
10,864

 
11,226

 
44,463

 
43,750

Interest expense
953

 
908

 
861

 
877

 
887

 
3,599

 
3,504

Net interest income
10,657

 
10,147

 
10,073

 
9,987

 
10,339

 
40,864

 
40,246

Provision for loan losses
(10
)
 
(12
)
 
222

 
15

 
55

 
215

 
913

Net interest income after provision
10,667

 
10,159

 
9,851

 
9,972

 
10,284

 
40,649

 
39,333

Non-interest income
2,579

 
2,659

 
2,790

 
2,430

 
2,615

 
10,458

 
10,853

Non-interest expense
8,612

 
8,672

 
8,611

 
7,968

 
7,908

 
33,863

 
33,261

Income before income taxes
4,634

 
4,146

 
4,030

 
4,434

 
4,991

 
17,244

 
16,925

Provision for income taxes
1,017

 
1,040

 
1,027

 
1,188

 
1,337

 
4,272

 
4,443

Net income
$
3,617

 
3,106

 
3,003

 
3,246

 
3,654

 
12,972

 
12,482

Accreted income on acquired loans
$
606

 
90

 
180

 
220

 
495

 
1,096

 
1,365

Tax-equivalent net interest income
$
11,062

 
10,569

 
10,494

 
10,410

 
10,772

 
42,549

 
41,908

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Per Share Data
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends per share
$
0.16

 
0.16

 
0.16

 
0.16

 
0.16

 
0.64

 
0.64

Basic earnings per common share
$
0.37

 
0.31

 
0.30

 
0.32

 
0.37

 
1.30

 
1.26

Diluted earnings per common share
$
0.36

 
0.31

 
0.30

 
0.32

 
0.37

 
1.29

 
1.25

Book value per share
$
14.99

 
14.94

 
14.77

 
14.52

 
14.30

 
14.99

 
14.30

Tangible book value per share
$
11.64

 
11.57

 
11.38

 
11.11

 
10.86

 
11.64

 
10.86

Average basic common shares outstanding
10,013,777

 
10,008,807

 
10,004,422

 
9,995,054

 
9,985,936

 
10,005,575

 
9,948,057

Average diluted common shares outstanding
10,020,566

 
10,015,204

 
10,011,312

 
10,002,878

 
9,991,975

 
10,012,511

 
9,976,370

Shares outstanding at period end
10,023,059

 
10,018,507

 
10,014,004

 
10,009,642

 
9,998,025

 
10,023,059

 
9,998,025

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Financial Ratios
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on average assets
1.11
 %
 
0.94
 %
 
0.91
%
 
1.01
%
 
1.10
%
 
0.99
%
 
0.96
%
Return on average equity
9.49
 %
 
8.22
 %
 
8.15
%
 
9.10
%
 
9.91
%
 
8.74
%
 
8.60
%
Dividend payout ratio
43.24
 %
 
51.61
 %
 
53.33
%
 
50.00
%
 
43.24
%
 
49.23
%
 
50.79
%
Net interest margin (tax equivalent)
3.73
 %
 
3.52
 %
 
3.50
%
 
3.55
%
 
3.56
%
 
3.58
%
 
3.51
%
Efficiency ratio (tax equivalent)
63.13
 %
 
65.56
 %
 
64.82
%
 
62.06
%
 
59.07
%
 
63.88
%
 
63.04
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Balance Sheet Items
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
25,386

 
21,203

 
29,967

 
33,274

 
18,865

 
 
 
 
Investment securities and stock
317,413

 
353,634

 
373,595

 
371,501

 
368,032

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
36,057

 
36,049

 
38,651

 
40,039

 
41,878

 
 
 
 
Commercial, secured by real estate
527,947

 
510,158

 
495,255

 
475,594

 
477,275

 
 
 
 
Residential real estate
251,582

 
253,530

 
258,710

 
260,853

 
265,788

 
 
 
 
Consumer
17,450

 
17,956

 
17,475

 
17,646

 
19,173

 
 
 
 
  Agricultural
15,194

 
15,677

 
16,014

 
15,459

 
14,802

 
 
 
 
Other, including deposit overdrafts
539

 
570

 
547

 
609

 
633

 
 
 
 
Deferred net origination costs
291

 
264

 
281

 
281

 
254

 
 
 
 
  Loans, gross
849,060

 
834,204

 
826,933

 
810,481

 
819,803

 
 
 
 
Less allowance for loan losses
3,403

 
3,407

 
3,382

 
3,328

 
3,575

 
 
 
 
  Loans, net
$
845,657

 
830,797

 
823,551

 
807,153

 
816,228

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 





 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 Year Ended
 
12/31/2017
 
9/30/2017
 
6/30/2017
 
3/31/2017
 
12/31/2016
 
12/31/2017
 
12/31/2016
Selected Balance Sheet Items, continued
 
 
 
 
 
 
 
 
 
 
 
 
Total earning assets
$
1,170,700

 
1,193,648

 
1,211,096

 
1,200,544

 
1,188,322

 
 
 
 
Total assets
1,295,638

 
1,314,319

 
1,335,571

 
1,319,074

 
1,306,799

 
 
 
 
Total deposits
1,085,821

 
1,121,523

 
1,143,920

 
1,148,198

 
1,110,905

 
 
 
 
Short-term borrowings
47,000

 
30,000

 
31,712

 
15,957

 
42,040

 
 
 
 
Long-term debt
303

 
363

 
402

 
480

 
598

 
 
 
 
Total shareholders’ equity
150,271

 
149,713

 
147,927

 
145,318

 
142,944

 
 
 
 
Equity to assets ratio
11.60
 %
 
11.39
 %
 
11.08
%
 
11.02
%
 
10.94
%
 
 
 
 
Loans to deposits ratio
78.20
 %
 
74.38
 %
 
72.29
%
 
70.59
%
 
73.80
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tangible common equity (TCE)
$
116,289

 
115,527

 
113,542

 
110,745

 
108,178

 
 
 
 
Tangible common assets (TCA)
1,261,656

 
1,280,133

 
1,301,186

 
1,284,501

 
1,272,033

 
 
 
 
TCE/TCA
9.22
 %
 
9.02
 %
 
8.73
%
 
8.62
%
 
8.50
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Average Balance Sheet Items
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
18,787

 
21,609

 
33,639

 
26,672

 
28,422

 
25,132

 
29,346

Investment securities and stock
332,225

 
363,039

 
373,295

 
366,499

 
380,138

 
358,682

 
390,621

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans
$
840,526

 
824,183

 
811,186

 
813,597

 
812,537

 
822,452

 
792,526

Less allowance for loan losses
3,407

 
3,324

 
3,334

 
3,557

 
3,654

 
3,405

 
3,318

Net loans
$
837,119

 
820,859

 
807,852

 
810,040

 
808,883

 
819,047

 
789,208

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total earning assets
$
1,175,180

 
1,190,860

 
1,202,129

 
1,188,383

 
1,204,360

 
1,189,106

 
1,195,541

Total assets
1,295,293

 
1,313,476

 
1,321,442

 
1,308,591

 
1,316,037

 
1,309,501

 
1,305,132

Total deposits
1,096,966

 
1,133,072

 
1,148,206

 
1,125,457

 
1,138,740

 
1,125,866

 
1,131,179

Short-term borrowings
34,440

 
17,936

 
15,030

 
28,500

 
20,406

 
23,976

 
17,952

Long-term debt
323

 
383

 
441

 
537

 
620

 
421

 
826

Total shareholders’ equity
151,154

 
150,032

 
147,826

 
144,672

 
146,602

 
148,443

 
145,161

Equity to assets ratio
11.67
 %
 
11.42
 %
 
11.19
%
 
11.06
%
 
11.14
%
 
11.34
%
 
11.12
%
Loans to deposits ratio
76.62
 %
 
72.74
 %
 
70.65
%
 
72.29
%
 
71.35
%
 
73.05
%
 
70.06
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset Quality
 
 
 
 
 
 
 
 
 
 
 
 
 
Net charge-offs (recoveries)
$
(7
)
 
(36
)
 
168

 
262

 
278

 
387

 
467

Other real estate owned
0

 
0

 
0

 
0

 
0

 
0

 
0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-accrual loans
2,965

 
4,387

 
3,747

 
3,869

 
5,725

 
2,965

 
5,725

Loans past due 90 days or more and still accruing
0

 
95

 
141

 
12

 
23

 
0

 
23

Total nonperforming loans
$
2,965

 
4,482

 
3,888

 
3,881

 
5,748

 
2,965

 
5,748

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net charge-offs (recoveries) to average loans
0.00
 %
 
(0.02
)%
 
0.08
%
 
0.13
%
 
0.14
%
 
0.09
%
 
0.12
%
Allowance for loan losses to total loans
0.40
 %
 
0.41
 %
 
0.41
%
 
0.41
%
 
0.44
%
 
0.40
%
 
0.44
%
Nonperforming loans to total loans
0.35
 %
 
0.54
 %
 
0.47
%
 
0.48
%
 
0.70
%
 
0.35
%
 
0.70
%
Nonperforming assets to total assets
0.23
 %
 
0.34
 %
 
0.29
%
 
0.29
%
 
0.44
%
 
0.23
%
 
0.44
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets Under Management
 
 
 
 
 
 
 
 
 
 
 
 
 
LCNB Corp. total assets
$
1,295,638

 
1,314,319

 
1,335,571

 
1,319,074

 
1,306,799

 
 
 
 
Trust and investments (fair value)
362,486

 
326,642

 
315,450

 
316,856

 
303,534

 
 
 
 
Mortgage loans serviced
92,818

 
96,241

 
98,234

 
99,324

 
100,982

 
 
 
 
 Cash management
84,344

 
77,780

 
45,519

 
29,102

 
30,319

 
 
 
 
Brokerage accounts (fair value)
229,006

 
219,960

 
209,019

 
199,019

 
188,663

 
 
 
 
Total assets managed
$
2,064,292

 
2,034,942

 
2,003,793

 
1,963,375

 
1,930,297

 
 
 
 





LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS

(Dollars in thousands)
 
December 31, 2017 (Unaudited)
 
December 31, 2016
ASSETS:
 
 
 
Cash and due from banks
$
21,159

 
18,378

Interest-bearing demand deposits
4,227

 
487

Total cash and cash equivalents
25,386

 
18,865

Investment securities:
 

 
 

Available-for-sale, at fair value
278,472

 
320,659

Held-to-maturity, at cost
32,571

 
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
845,657

 
816,228

Premises and equipment, net
34,927

 
30,244

Goodwill
30,183

 
30,183

Core deposit and other intangibles
3,799

 
4,582

Bank owned life insurance
27,985

 
27,307

Other assets
10,288

 
11,358

TOTAL ASSETS
$
1,295,638

 
1,306,799

 
 
 
 
LIABILITIES:
 

 
 

Deposits:
 

 
 

Noninterest-bearing
$
283,212

 
271,332

Interest-bearing
802,609

 
839,573

Total deposits
1,085,821

 
1,110,905

Short-term borrowings
47,000

 
42,040

Long-term debt
303

 
598

Accrued interest and other liabilities
12,243

 
10,312

TOTAL LIABILITIES
1,145,367

 
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 December 31, 2017 and 2016; issued 10,776,686 and 10,751,652 shares at December 31, 2017 and 2016, respectively
76,977

 
76,490

Retained earnings
87,301

 
80,736

Treasury shares at cost, 753,627 shares at December 31, 2017 and 2016
(11,665
)
 
(11,665
)
Accumulated other comprehensive loss, net of taxes
(2,342
)
 
(2,617
)
TOTAL SHAREHOLDERS' EQUITY
150,271

 
142,944

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$
1,295,638

 
1,306,799










LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
 
Three Months Ended 
 December 31,
 
Year Ended 
December 31,
 
2017
 
2016
 
2017
 
2016
INTEREST INCOME:
 
 
 
 
 
 
 
Interest and fees on loans
$
9,738

 
9,205

 
36,571

 
35,600

Interest on investment securities –
 
 
 
 
 
 
 
Taxable
978

 
1,054

 
4,328

 
4,582

Non-taxable
753

 
834

 
3,130

 
3,199

Other short-term investments
141

 
133

 
434

 
369

TOTAL INTEREST INCOME
11,610

 
11,226

 
44,463

 
43,750

INTEREST EXPENSE:
 

 
 

 
 

 
 

Interest on deposits
839

 
875

 
3,378

 
3,440

Interest on short-term borrowings
112

 
8

 
209

 
38

Interest on long-term debt
2

 
4

 
12

 
26

TOTAL INTEREST EXPENSE
953

 
887

 
3,599

 
3,504

NET INTEREST INCOME
10,657

 
10,339

 
40,864

 
40,246

PROVISION FOR LOAN LOSSES
(10
)
 
55

 
215

 
913

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
10,667

 
10,284

 
40,649

 
39,333

NON-INTEREST INCOME:
 

 
 

 
 

 
 

Fiduciary income
869

 
815

 
3,473

 
3,286

Service charges and fees on deposit accounts
1,350

 
1,296

 
5,236

 
5,008

Net gain on sales of securities
15

 
125

 
233

 
1,082

Bank owned life insurance income
191

 
193

 
867

 
746

Gains from sales of loans
30

 
69

 
166

 
244

Other operating income
124

 
117

 
483

 
487

TOTAL NON-INTEREST INCOME
2,579

 
2,615

 
10,458

 
10,853

NON-INTEREST EXPENSE:
 

 
 

 
 

 
 

Salaries and employee benefits
4,678

 
4,478

 
18,585

 
18,215

Equipment expenses
336

 
281

 
1,172

 
1,048

Occupancy expense, net
724

 
564

 
2,613

 
2,271

State financial institutions tax
286

 
278

 
1,137

 
1,114

Marketing
232

 
166

 
873

 
696

Amortization of intangibles
189

 
189

 
751

 
753

FDIC insurance premiums
103

 
52

 
423

 
547

Contracted services
325

 
283

 
1,255

 
1,033

Other real estate owned
2

 
17

 
10

 
624

Merger-related expenses
108

 

 
118

 

Other non-interest expense
1,629

 
1,600

 
6,926

 
6,960

TOTAL NON-INTEREST EXPENSE
8,612

 
7,908

 
33,863

 
33,261

INCOME BEFORE INCOME TAXES
4,634

 
4,991

 
17,244

 
16,925

PROVISION FOR INCOME TAXES
1,017

 
1,337

 
4,272

 
4,443

NET INCOME
$
3,617

 
3,654

 
12,972

 
12,482

 
 
 
 
 
 
 
 
Dividends declared per common share
$
0.16

 
0.16

 
0.64

 
0.64

Earnings per common share:
 

 
 

 
 

 
 

Basic
0.37

 
0.37

 
1.30

 
1.26

Diluted
0.36

 
0.37

 
1.29

 
1.25

Weighted average common shares outstanding:
 
 
 
 
 
 
 
Basic
10,013,777

 
9,985,936

 
10,005,575

 
9,948,057

Diluted
10,020,566

 
9,991,975

 
10,012,511

 
9,976,370







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