EX-99.2 3 lcnbform8-k9302021xex992.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
Nine Months Ended
9/30/2021
6/30/2021
3/31/2021
12/31/2020
9/30/2020
9/30/2021
9/30/2020
Condensed Income Statement
Interest income
$15,024 $15,429 $15,535 15,945 15,322 45,988 47,835 
Interest expense
951 1,060 1,163 1,432 1,793 3,174 6,130 
Net interest income
14,073 14,369 14,372 14,513 13,529 42,814 41,705 
Provision (credit) for loan losses
306 (15)(52)(151)976 239 2,165 
Net interest income after provision (credit)
13,767 14,384 14,424 14,664 12,553 42,575 39,540 
Non-interest income
4,106 4,314 3,465 4,305 4,278 11,885 11,436 
Non-interest expense
12,029 12,208 11,492 11,944 11,653 35,729 33,841 
Income before income taxes
5,844 6,490 6,397 7,025 5,178 18,731 17,135 
Provision for income taxes
1,027 1,200 1,157 1,283 928 3,384 2,802 
Net income
$4,817 $5,290 $5,240 5,742 4,250 15,347 14,333 
Amort/Accret income on acquired loans
$132 $216 $249 186 181 597 1,142 
Amort/Accret expenses on acquired interest-bearing liabilities
$— $— $— 1 — — 5 
Tax-equivalent net interest income
$14,129 $14,427 $14,432 14,577 13,594 42,988 41,914 
Per Share Data
Dividends per share
$0.19 $0.19 $0.19 0.19 0.18 0.57 0.54 
Basic earnings per common share
$0.39 $0.41 $0.41 0.44 0.33 1.21 1.11 
Diluted earnings per common share
$0.39 $0.41 $0.41 0.44 0.33 1.21 1.11 
Book value per share
$19.17 $18.99 $18.66 18.73 18.46 19.17 18.46 
Tangible book value per share
$14.28 $14.15 $13.87 13.93 13.66 14.28 13.66 
Weighted average common shares outstanding:
Basic
12,455,276 12,743,726 12,794,824 12,852,614 12,937,865 12,663,368 12,934,987 
Diluted
12,455,276 12,743,726 12,794,852 12,852,657 12,937,901 12,663,378 12,935,388 
Shares outstanding at period end
12,434,084 12,634,845 12,820,108 12,858,325 12,926,686 12,434,084 12,926,686 
Selected Financial Ratios
Return on average assets
1.02 %1.15 %1.20 %1.31 %0.97 %1.12 %1.13 %
Return on average equity
7.93 %8.78 %8.80 %9.52 %7.08 %8.50 %8.14 %
Return on average tangible common equity10.62 %11.76 %11.81 %12.83 %9.56 %11.39 %11.07 %
Dividend payout ratio
48.72 %46.34 %46.34 %43.18 %54.55 %47.11 %48.65 %
Net interest margin (tax equivalent)
3.32 %3.51 %3.68 %3.71 %3.47 %3.49 %3.69 %
Efficiency ratio (tax equivalent)
65.96 %65.14 %64.21 %63.26 %65.20 %65.11 %63.43 %
Selected Balance Sheet Items
Cash and cash equivalents
$23,852 $22,909 $41,144 31,730 24,485 
Debt and equity securities
352,066 349,199 276,774 248,624 199,044 
Loans:
Commercial and industrial
$91,246 $97,240 $107,630 100,254 124,628 
Commercial, secured by real estate
862,202 836,085 855,894 843,230 843,943 
Residential real estate
343,318 341,447 328,265 309,692 327,689 
Consumer
35,349 35,257 35,799 36,917 36,504 
  Agricultural
8,852 8,765 8,698 10,100 8,920 
Other, including deposit overdrafts
247 369 346 363 403 
Deferred net origination fees
(1,055)(1,398)(1,531)(1,135)(1,927)
  Loans, gross
1,340,159 1,317,765 1,335,101 1,299,421 1,340,160 
Less allowance for loan losses
5,828 5,652 5,679 5,728 5,974 
  Loans, net
$1,334,331 $1,312,113 $1,329,422 1,293,693 1,334,186 


Three Months Ended
Nine Months Ended
9/30/20216/30/20213/31/202112/31/20209/30/20209/30/20219/30/2020
Selected Balance Sheet Items, continued
Total earning assets
$1,695,281 $1,671,462 $1,634,818 1,562,392 1,547,538 
Total assets
1,884,252 1,856,670 1,818,321 1,745,884 1,725,615 
Total deposits
1,603,203 1,577,345 1,537,116 1,455,423 1,430,394 
Short-term borrowings
— — — — — 
Long-term debt
15,000 15,000 17,000 22,000 31,999 
Total shareholders’ equity
238,419 239,952 239,246 240,825 238,585 
Equity to assets ratio
12.65 %12.92 %13.16 %13.79 %13.83 %
Loans to deposits ratio
83.59 %83.54 %86.86 %89.28 %93.69 %
Tangible common equity (TCE)
$177,501 $178,771 $177,805 179,127 176,624 
Tangible common assets (TCA)
1,823,334 1,795,489 1,756,880 1,684,186 1,663,654 
TCE/TCA
9.73 %9.96 %10.12 %10.64 %10.62 %
Selected Average Balance Sheet Items
Cash and cash equivalents
$34,557 $45,414 $37,269 49,273 42,661 39,021 37,988 
Debt and equity securities
356,214 312,596 260,147 218,816 197,788 310,004 195,033 
Loans
$1,321,629 $1,328,760 $1,313,803 1,313,892 1,339,608 1,321,426 1,303,770 
Less allowance for loan losses
5,567 5,678 5,715 5,920 5,250 5,653 4,730 
Net loans
$1,316,062 $1,323,082 $1,308,088 1,307,972 1,334,358 1,315,773 1,299,040 
Total earning assets
$1,688,589 $1,666,126 $1,589,582 1,561,392 1,558,886 1,648,461 1,516,967 
Total assets
1,879,314 1,852,035 1,775,154 1,742,947 1,741,998 1,835,887 1,695,103 
Total deposits
1,595,773 1,570,070 1,488,156 1,447,217 1,445,573 1,551,727 1,401,636 
Short-term borrowings
1,320 716 342 — — 796 497 
Long-term debt
15,000 15,571 19,689 30,803 33,020 16,736 35,427 
Total shareholders’ equity
240,976 241,651 241,517 239,881 238,990 241,379 235,225 
Equity to assets ratio
12.82 %13.05 %13.61 %13.76 %13.72 %13.15 %13.88 %
Loans to deposits ratio
82.82 %84.63 %88.28 %90.79 %92.67 %85.16 %93.02 %
Asset Quality
Net charge-offs (recoveries)
$130 $12 $(3)95 18 139 236 
Other real estate owned
— — — — — — — 
Non-accrual loans
2,629 3,338 3,365 3,718 4,110 2,629 4,110 
Loans past due 90 days or more and still accruing
13 — — — 94 13 94 
Total nonperforming loans
$2,642 $3,338 $3,365 3,718 4,204 2,642 4,204 
Net charge-offs to average loans
0.04 %0.00 %0.00 %0.03 %0.01 %0.01 %0.02 %
Allowance for loan losses to total loans
0.43 %0.43 %0.43 %0.44 %0.45 %0.43 %0.45 %
Nonperforming loans to total loans
0.20 %0.25 %0.25 %0.29 %0.31 %0.20 %0.31 %
Nonperforming assets to total assets
0.14 %0.18 %0.19 %0.21 %0.24 %0.14 %0.24 %
Assets Under Management
LCNB Corp. total assets
$1,884,252 $1,856,670 $1,818,321 1,745,884 1,725,615 
Trust and investments (fair value)
713,936 701,838 673,742 628,414 524,502 
Mortgage loans serviced
140,147 126,924 127,290 137,188 120,546 
Cash management
72,622 80,177 118,494 116,792 119,520 
Brokerage accounts (fair value)
319,495 314,491 299,355 292,953 267,307 
Total assets managed
$3,130,452 $3,080,100 3,037,202 2,921,231 2,757,490 


LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS

(Dollars in thousands)
September 30, 2021 (Unaudited)
December 31, 2020
ASSETS:
Cash and due from banks$20,796 17,383 
Interest-bearing demand deposits3,056 14,347 
Total cash and cash equivalents23,852 31,730 
Investment securities:
Equity securities with a readily determinable fair value, at fair value2,478 2,389 
Equity securities without a readily determinable fair value, at cost2,099 2,099 
Debt securities, available-for-sale, at fair value313,214 209,471 
Debt securities, held-to-maturity, at cost24,420 24,810 
Federal Reserve Bank stock, at cost4,652 4,652 
Federal Home Loan Bank stock, at cost5,203 5,203 
Loans, net1,334,331 1,293,693 
Premises and equipment, net35,154 35,376 
Operating leases right of use asset6,608 6,274 
Goodwill59,221 59,221 
Core deposit and other intangibles2,671 3,453 
Bank owned life insurance42,954 42,149 
Interest receivable8,6248,337 
Other assets18,771 17,027 
TOTAL ASSETS$1,884,252 1,745,884 
LIABILITIES:  
Deposits:  
Noninterest-bearing$483,920 455,073 
Interest-bearing1,119,283 1,000,350 
Total deposits1,603,203 1,455,423 
Long-term debt15,000 22,000 
Operating lease liabilities6,693 6,371 
Accrued interest and other liabilities20,937 21,265 
TOTAL LIABILITIES1,645,833 1,505,059 
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 14,207,735 and 14,163,904 shares at September 30, 2021 and December 31, 2020, respectively; outstanding 12,434,084 and 12,858,325 shares at September 30, 2021 and December 31, 2020, respectively
142,946 142,443 
Retained earnings123,167 115,058 
Treasury shares at cost, 1,773,651 and 1,305,579 shares at September 30, 2021 and December 31, 2020, respectively
(28,590)(20,719)
Accumulated other comprehensive income, net of taxes896 4,043 
TOTAL SHAREHOLDERS' EQUITY238,419 240,825 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$1,884,252 1,745,884 




LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended
September 30,		Nine Months Ended 
September 30,
 2021202020212020
INTEREST INCOME:
Interest and fees on loans$13,729 14,379 42,372 44,428 
Dividends on equity securities with a readily determinable fair value12 13 38 40 
Dividends on equity securities without a readily determinable fair value5 5 16 33 
Interest on debt securities, taxable1,027 633 2,650 2,250 
Interest on debt securities, non-taxable214 249 656 788 
Other investments37 43 256 296 
TOTAL INTEREST INCOME15,024 15,322 45,988 47,835 
INTEREST EXPENSE:    
Interest on deposits836 1,567 2,809 5,416 
Interest on short-term borrowings2 — 4 7 
Interest on long-term debt113 226 361 707 
TOTAL INTEREST EXPENSE951 1,793 3,174 6,130 
NET INTEREST INCOME14,073 13,529 42,814 41,705 
PROVISION FOR LOAN LOSSES306 976 239 2,165 
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES13,767 12,553 42,575 39,540 
NON-INTEREST INCOME:    
Fiduciary income1,695 1,275 4,959 3,579 
Service charges and fees on deposit accounts1,621 1,506 4,506 4,038 
Net gains on sales of debt securities, available-for-sale— — — 221 
Bank owned life insurance income269 275 805 1,163 
Gains from sales of loans366 999 560 1,436 
Other operating income155 223 1,055 999 
TOTAL NON-INTEREST INCOME4,106 4,278 11,885 11,436 
NON-INTEREST EXPENSE:    
Salaries and employee benefits7,096 6,863 20,640 20,279 
Equipment expenses421 341 1,232 917 
Occupancy expense, net713 740 2,236 2,145 
State financial institutions tax437 424 1,318 1,280 
Marketing253 471 878 906 
Amortization of intangibles263 263 780 783 
FDIC insurance premiums, net129 112 365 142 
Contracted services655 435 1,818 1,312 
Other non-interest expense2,062 2,004 6,462 6,077 
TOTAL NON-INTEREST EXPENSE12,029 11,653 35,729 33,841 
INCOME BEFORE INCOME TAXES5,844 5,178 18,731 17,135 
PROVISION FOR INCOME TAXES1,027 928 3,384 2,802 
NET INCOME$4,817 4,250 15,347 14,333 
Dividends declared per common share$0.19 0.18 0.57 0.54 
Earnings per common share:
Basic0.39 0.33 1.21 1.11 
Diluted0.39 0.33 1.21 1.11 
Weighted average common shares outstanding:
Basic12,455,276 12,937,865 12,663,368 12,934,987 
Diluted12,455,276 12,937,901 12,663,378 12,935,388