EX-99.2 3 lcnbform8-k12312021xex992.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
Twelve Months Ended
12/31/2021
9/30/2021
6/30/2021
3/31/2021
12/31/2020
12/31/21
12/31/20
Condensed Income Statement
Interest income
$15,189 15,024 15,429 15,535 15,945 61,177 63,780 
Interest expense
879 951 1,060 1,163 1,432 4,053 7,562 
Net interest income
14,310 14,073 14,369 14,372 14,513 57,124 56,218 
Provision (credit) for loan losses
(508)306 (15)(52)(151)(269)2,014 
Net interest income after provision (credit) for loan losses
14,818 13,767 14,384 14,424 14,664 57,393 54,204 
Non-interest income
4,347 4,106 4,314 3,465 4,305 16,232 15,741 
Non-interest expense
12,311 12,029 12,208 11,492 11,944 48,040 45,785 
Income before income taxes
6,854 5,844 6,490 6,397 7,025 25,585 24,160 
Provision for income taxes
1,227 1,027 1,200 1,157 1,283 4,611 4,085 
Net income
$5,627 4,817 5,290 5,240 5,742 20,974 20,075 
Amort/Accret income on acquired loans
$116 132 216 249 186 713 1,328 
Tax-equivalent net interest income
$14,365 14,129 14,427 14,432 14,577 57,354 56,491 
Per Share Data
Dividends per share
$0.20 0.19 0.19 0.19 0.19 0.77 0.73 
Basic earnings per common share
$0.45 0.39 0.41 0.41 0.44 1.66 1.55 
Diluted earnings per common share
$0.45 0.39 0.41 0.41 0.44 1.66 1.55 
Book value per share
$19.22 19.17 18.99 18.66 18.73 19.22 18.73 
Tangible book value per share
$14.33 14.28 14.15 13.87 13.93 14.33 13.93 
Weighted average common shares outstanding:
Basic
12,370,702 12,455,276 12,743,726 12,794,824 12,852,614 12,589,605 12,914,277 
Diluted
12,370,702 12,455,276 12,743,726 12,794,852 12,852,657 12,589,613 12,914,584 
Shares outstanding at period end
12,414,956 12,434,084 12,634,845 12,820,108 12,858,325 12,414,956 12,858,325 
Selected Financial Ratios
Return on average assets
1.18 %1.02 %1.15 %1.20 %1.31 %1.13 %1.18 %
Return on average equity
9.33 %7.93 %8.78 %8.80 %9.52 %8.71 %8.49 %
Return on average tangible common equity12.51 %10.62 %11.76 %11.81 %12.83 %11.67 %11.53 %
Dividend payout ratio
44.44 %48.72 %46.34 %46.34 %43.18 %46.39 %47.10 %
Net interest margin (tax equivalent)
3.34 %3.32 %3.51 %3.68 %3.71 %3.45 %3.70 %
Efficiency ratio (tax equivalent)
65.79 %65.96 %65.14 %64.21 %63.26 %65.28 %63.39 %
Selected Balance Sheet Items
Cash and cash equivalents
$18,136 23,852 22,909 41,144 31,730 
Debt and equity securities
345,649 352,066 349,199 276,774 248,624 
Loans:
Commercial and industrial
$101,792 91,246 97,240 107,630 100,254 
Commercial, secured by real estate
889,108 862,202 836,085 855,894 843,230 
Residential real estate
334,547 343,318 341,447 328,265 309,692 
Consumer
34,190 35,349 35,257 35,799 36,917 
  Agricultural
10,647 8,852 8,765 8,698 10,100 
Other, including deposit overdrafts
122 247 369 346 363 
Deferred net origination fees
(961)(1,055)(1,398)(1,531)(1,135)
  Loans, gross
1,369,445 1,340,159 1,317,765 1,335,101 1,299,421 
Less allowance for loan losses
5,506 5,828 5,652 5,679 5,728 
  Loans, net
$1,363,939 1,334,331 1,312,113 1,329,422 1,293,693 


Three Months Ended
Twelve Months Ended
12/31/20219/30/20216/30/20213/31/202112/31/202012/31/2112/31/20
Selected Balance Sheet Items, continued
Total earning assets
$1,716,420 1,695,281 1,671,462 1,634,818 1,562,392 
Total assets
1,903,629 1,884,252 1,856,670 1,818,321 1,745,884 
Total deposits
1,628,819 1,603,203 1,577,345 1,537,116 1,455,423 
Long-term debt
10,000 15,000 15,000 17,000 22,000 
Total shareholders’ equity
238,604 238,419 239,952 239,246 240,825 
Equity to assets ratio
12.53 %12.65 %12.92 %13.16 %13.79 %
Loans to deposits ratio
84.08 %83.59 %83.54 %86.86 %89.28 %
Tangible common equity (TCE)
$177,949 177,501 178,771 177,805 179,127 
Tangible common assets (TCA)
1,842,974 1,823,334 1,795,489 1,756,880 1,684,186 
TCE/TCA
9.66 %9.73 %9.96 %10.12 %10.64 %
Selected Average Balance Sheet Items
Cash and cash equivalents
$29,614 34,557 45,414 37,269 49,273 36,648 40,825 
Debt and equity securities
348,150 356,214 312,596 260,147 218,816 319,619 201,012 
Loans
$1,351,762 1,321,629 1,328,760 1,313,803 1,313,892 1,329,072 1,306,314 
Less allowance for loan losses
5,843 5,567 5,678 5,715 5,920 5,701 5,029 
Net loans
$1,345,919 1,316,062 1,323,082 1,308,088 1,307,972 1,323,371 1,301,285 
Total earning assets
$1,708,392 1,688,589 1,666,126 1,589,582 1,561,392 1,663,567 1,528,134 
Total assets
1,896,530 1,879,314 1,852,035 1,775,154 1,742,947 1,851,177 1,706,924 
Total deposits
1,615,020 1,595,773 1,570,070 1,488,156 1,447,217 1,567,680 1,413,093 
Short-term borrowings
893 1,320 716 342 — 821 372 
Long-term debt
14,402 15,000 15,571 19,689 30,803 16,148 34,265 
Total shareholders’ equity
239,174 240,976 241,651 241,517 239,881 240,823 236,396 
Equity to assets ratio
12.61 %12.82 %13.05 %13.61 %13.76 %13.01 %13.85 %
Loans to deposits ratio
83.70 %82.82 %84.63 %88.28 %90.79 %84.78 %92.44 %
Asset Quality
Net charge-offs (recoveries)
$(186)130 12 (3)95 (47)331 
Other real estate owned
— — — — — — — 
Non-accrual loans
1,481 2,629 3,338 3,365 3,718 1,481 3,718 
Loans past due 90 days or more and still accruing
56 13 — — — 56 — 
Total nonperforming loans
$1,537 2,642 3,338 3,365 3,718 1,537 3,718 
Net charge-offs (recoveries) to average loans
(0.05)%0.04 %0.00 %0.00 %0.03 %0.00 %0.03 %
Allowance for loan losses to total loans
0.40 %0.43 %0.43 %0.43 %0.44 %0.40 %0.44 %
Nonperforming loans to total loans
0.11 %0.20 %0.25 %0.25 %0.29 %0.11 %0.29 %
Nonperforming assets to total assets
0.08 %0.14 %0.18 %0.19 %0.21 %0.08 %0.21 %
Assets Under Management
LCNB Corp. total assets
$1,903,629 1,884,252 1,856,670 1,818,321 1,745,884 
Trust and investments (fair value)
722,093 713,936 701,838 673,742 628,414 
Mortgage loans serviced
149,382 140,147 126,924 127,290 137,188 
Cash management
34,009 72,622 80,177 118,494 116,792 
Brokerage accounts (fair value)
334,670 319,495 314,491 299,355 292,953 
Total assets managed
$3,143,783 3,130,452 3,080,100 3,037,202 2,921,231 


LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS

(Dollars in thousands)
December 31, 2021 (Unaudited)
December 31, 2020
ASSETS:
Cash and due from banks$16,810 17,383 
Interest-bearing demand deposits1,326 14,347 
Total cash and cash equivalents18,136 31,730 
Investment securities:
Equity securities with a readily determinable fair value, at fair value2,546 2,389 
Equity securities without a readily determinable fair value, at cost2,099 2,099 
Debt securities, available-for-sale, at fair value308,177 209,471 
Debt securities, held-to-maturity, at cost22,972 24,810 
Federal Reserve Bank stock, at cost4,652 4,652 
Federal Home Loan Bank stock, at cost5,203 5,203 
Loans, net1,363,939 1,293,693 
Premises and equipment, net35,385 35,376 
Operating leases right of use asset6,357 6,274 
Goodwill59,221 59,221 
Core deposit and other intangibles2,473 3,453 
Bank owned life insurance43,224 42,149 
Interest receivable7,9998,337 
Other assets21,246 17,027 
TOTAL ASSETS$1,903,629 1,745,884 
LIABILITIES:  
Deposits:  
Noninterest-bearing$501,531 455,073 
Interest-bearing1,127,288 1,000,350 
Total deposits1,628,819 1,455,423 
Long-term debt10,000 22,000 
Operating lease liabilities6,473 6,371 
Accrued interest and other liabilities19,733 21,265 
TOTAL LIABILITIES1,665,025 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 14,213,792 and 14,163,904 shares at December 31, 2021 and 2020, respectively; outstanding 12,414,956 and 12,858,325 shares at December 31, 2021 and 2020, respectively
143,130 142,443 
Retained earnings126,312 115,058 
Treasury shares at cost, 1,798,836 and 1,305,579 shares at December 31, 2021 and 2020, respectively
(29,029)(20,719)
Accumulated other comprehensive income (loss), net of taxes(1,809)4,043 
TOTAL SHAREHOLDERS' EQUITY238,604 240,825 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$1,903,629 1,745,884 




LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended December 31,Twelve Months Ended December 31,
 2021202020212020
INTEREST INCOME:
Interest and fees on loans$13,770 14,839 56,142 59,267 
Dividends on equity securities with a readily determinable fair value13 14 51 54 
Dividends on equity securities without a readily determinable fair value5 4 21 37 
Interest on debt securities, taxable1,018 666 3,668 2,916 
Interest on debt securities, non-taxable208 239 864 1,027 
Other investments175 183 431 479 
TOTAL INTEREST INCOME15,189 15,945 61,177 63,780 
INTEREST EXPENSE:    
Interest on deposits769 1,218 3,578 6,634 
Interest on short-term borrowings2 — 6 7 
Interest on long-term debt108 214 469 921 
TOTAL INTEREST EXPENSE879 1,432 4,053 7,562 
NET INTEREST INCOME14,310 14,513 57,124 56,218 
PROVISION (CREDIT) FOR LOAN LOSSES(508)(151)(269)2,014 
NET INTEREST INCOME AFTER PROVISION (CREDIT) FOR LOAN LOSSES14,818 14,664 57,393 54,204 
NON-INTEREST INCOME:    
Fiduciary income1,715 1,430 6,674 5,009 
Service charges and fees on deposit accounts1,530 1,444 6,036 5,482 
Net gains on sales of debt securities, available-for-sale303 — 303 221 
Bank owned life insurance income269 278 1,074 1,441 
Gains from sales of loans292 861 852 2,297 
Other operating income238 292 1,293 1,291 
TOTAL NON-INTEREST INCOME4,347 4,305 16,232 15,741 
NON-INTEREST EXPENSE:    
Salaries and employee benefits6,976 6,899 27,616 27,178 
Equipment expenses446 460 1,678 1,377 
Occupancy expense, net713 730 2,949 2,875 
State financial institutions tax440 428 1,758 1,708 
Marketing361 348 1,239 1,254 
Amortization of intangibles263 263 1,043 1,046 
FDIC insurance premiums, net127 114 492 256 
ATM expense436 347 1,416 1,028 
Computer maintenance and supplies332 291 1,213 1,107 
Telephone expense64 185 420 706 
Contracted services612 509 2,430 1,821 
Other non-interest expense1,541 1,370 5,786 5,429 
TOTAL NON-INTEREST EXPENSE12,311 11,944 48,040 45,785 
INCOME BEFORE INCOME TAXES6,854 7,025 25,585 24,160 
PROVISION FOR INCOME TAXES1,227 1,283 4,611 4,085 
NET INCOME$5,627 5,742 20,974 20,075 
Dividends declared per common share$0.20 0.19 0.77 0.73 
Earnings per common share:
Basic0.45 0.44 1.66 1.55 
Diluted0.45 0.44 1.66 1.55 
Weighted average common shares outstanding:
Basic12,370,702 12,852,614 12,589,605 12,914,277 
Diluted12,370,702 12,852,657 12,589,613 12,914,584