EX-99.2 3 lcnbform8-k6302022xex992.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
Six Months Ended
6/30/2022
3/31/2022
12/31/2021
9/30/2021
6/30/2021
6/30/2022
6/30/2021
Condensed Income Statement
Interest income
$16,208 15,122 15,189 15,024 15,429 31,330 30,964 
Interest expense
1,041 899 879 951 1,060 1,940 2,223 
Net interest income
15,167 14,223 14,310 14,073 14,369 29,390 28,741 
Provision (credit) for loan losses
377 49 (508)306 (15)426 (67)
Net interest income after provision (credit) for loan losses
14,790 14,174 14,818 13,767 14,384 28,964 28,808 
Non-interest income
3,528 3,550 4,347 4,106 4,314 7,078 7,779 
Non-interest expense
11,469 12,250 12,311 12,029 12,208 23,719 23,700 
Income before income taxes
6,849 5,474 6,854 5,844 6,490 12,323 12,887 
Provision for income taxes
1,231 951 1,227 1,027 1,200 2,182 2,357 
Net income
$5,618 4,523 5,627 4,817 5,290 10,141 10,530 
Supplemental Income Statement Information
Amort/Accret income on acquired loans
$61 66 116 132 216 127 465 
Tax-equivalent net interest income
$15,217 14,273 14,365 14,129 14,427 29,490 28,858 
Per Share Data
Dividends per share
$0.20 0.20 0.20 0.19 0.19 0.40 0.38 
Basic earnings per common share
$0.49 0.38 0.45 0.39 0.41 0.87 0.82 
Diluted earnings per common share
$0.49 0.38 0.45 0.39 0.41 0.87 0.82 
Book value per share
$17.84 18.14 19.22 19.17 18.99 17.84 18.99 
Tangible book value per share
$12.53 12.84 14.33 14.28 14.15 12.53 14.15 
Weighted average common shares outstanding:
Basic
11,337,805 11,818,614 12,370,702 12,455,276 12,743,726 11,576,873 12,769,131 
Diluted
11,337,805 11,818,614 12,370,702 12,455,276 12,743,726 11,576,873 12,769,146 
Shares outstanding at period end
11,374,515 11,401,503 12,414,956 12,434,084 12,634,845 11,374,515 12,634,845 
Selected Financial Ratios
Return on average assets
1.18 %0.96 %1.18 %1.02 %1.15 %1.07 %1.17 %
Return on average equity
10.96 %8.13 %9.33 %7.93 %8.78 %9.48 %8.79 %
Return on average tangible common equity15.52 %11.11 %12.51 %10.62 %11.76 %13.18 %11.79 %
Dividend payout ratio
40.82 %52.63 %44.44 %48.72 %46.34 %45.98 %46.34 %
Net interest margin (tax equivalent)
3.54 %3.35 %3.34 %3.32 %3.51 %3.45 %3.57 %
Efficiency ratio (tax equivalent)
61.18 %68.73 %65.79 %65.96 %65.14 %64.86 %64.69 %
Selected Balance Sheet Items
Cash and cash equivalents
$31,815 19,941 18,136 23,852 22,909 
Debt and equity securities
337,952 330,715 345,649 352,066 349,199 
Loans:
Commercial and industrial
$114,971 105,805 101,792 91,246 97,240 
Commercial, secured by real estate
905,703 906,140 889,108 862,202 836,085 
Residential real estate
315,930 328,034 334,547 343,318 341,447 
Consumer
30,308 32,445 34,190 35,349 35,257 
  Agricultural
7,412 7,980 10,647 8,852 8,765 
Other, including deposit overdrafts
81 45 122 247 369 
Deferred net origination fees
(928)(928)(961)(1,055)(1,398)
  Loans, gross
1,373,477 13734770001,379,521 1,369,445 1,340,159 1,317,765 
Less allowance for loan losses
5,833 5,530 5,506 5,828 5,652 
  Loans, net
$1,367,644 1,373,991 1,363,939 1,334,331 1,312,113 


Three Months Ended
Six Months Ended
6/30/20223/31/202212/31/20219/30/20216/30/20216/30/20226/30/2021
Selected Balance Sheet Items, continued
Total earning assets
$1,722,853 1,712,115 1,716,420 1,695,281 1,671,462 
Total assets
1,912,627 1,899,630 1,903,629 1,884,252 1,856,670 
Total deposits
1,658,825 1,636,606 1,628,819 1,603,203 1,577,345 
Short-term borrowings
5,000 24,746 — — — 
Long-term debt
25,000 10,000 10,000 15,000 15,000 
Total shareholders’ equity
202,960 206,875 238,604 238,419 239,952 
Equity to assets ratio
10.61 %10.89 %12.53 %12.65 %12.92 %
Loans to deposits ratio
82.80 %84.29 %84.08 %83.59 %83.54 %
Tangible common equity (TCE)
$142,557 146,360 177,949 177,501 178,771 
Tangible common assets (TCA)
1,852,224 1,839,115 1,842,974 1,823,334 1,795,489 
TCE/TCA
7.70 %7.96 %9.66 %9.73 %9.96 %
Selected Average Balance Sheet Items
Cash and cash equivalents
$28,787 32,826 29,614 34,557 45,414 30,788 41,385 
Debt and equity securities
338,149 340,666 348,150 356,214 312,596 339,432 286,517 
Loans
$1,375,710 1,376,926 1,351,762 1,321,629 1,328,760 1,376,315 1,321,323 
Less allowance for loan losses
5,532 5,503 5,843 5,567 5,678 5,517 5,696 
Net loans
$1,370,178 1,371,423 1,345,919 1,316,062 1,323,082 1,370,798 1,315,627 
Total earning assets
$1,722,503 1,727,335 1,708,392 1,688,589 1,666,126 1,724,938 1,628,066 
Total assets
1,912,574 1,917,226 1,896,530 1,879,314 1,852,035 1,914,767 1,813,888 
Total deposits
1,655,389 1,646,627 1,615,020 1,595,773 1,570,070 1,651,032 1,529,339 
Short-term borrowings
18,263 12,503 893 1,320 716 15,399 530 
Long-term debt
12,637 10,000 14,402 15,000 15,571 11,326 17,619 
Total shareholders’ equity
205,645 225,725 239,174 240,976 241,651 215,629 241,585 
Equity to assets ratio
10.75 %11.77 %12.61 %12.82 %13.05 %11.26 %13.32 %
Loans to deposits ratio
83.10 %83.62 %83.70 %82.82 %84.63 %83.36 %86.40 %
Asset Quality
Net charge-offs (recoveries)
$74 25 (186)$130 12 99 9 
Other real estate owned
— — — — — — — 
Non-accrual loans
$599 1,455 1,481 2,629 3,338 599 3,338 
Loans past due 90 days or more and still accruing
— — 56 13 — — — 
Total nonperforming loans
$599 1,455 1,537 $2,642 3,338 599 3,338 
Net charge-offs (recoveries) to average loans
0.02 %0.01 %(0.05)%0.04 %0.00 %0.01 %0.00 %
Allowance for loan losses to total loans
0.42 %0.40 %0.40 %0.43 %0.43 %0.42 %0.43 %
Nonperforming loans to total loans
0.04 %0.11 %0.11 %0.20 %0.25 %0.04 %0.25 %
Nonperforming assets to total assets
0.03 %0.08 %0.08 %0.14 %0.18 %0.03 %0.18 %
Assets Under Management
LCNB Corp. total assets
$1,912,627 1,899,630 1,903,629 1,884,252 1,856,670 
Trust and investments (fair value)
625,984 700,353 722,093 713,936 701,838 
Mortgage loans serviced
153,557 152,271 149,382 140,147 126,924 
Cash management
38,914 75,302 34,009 72,622 80,177 
Brokerage accounts (fair value)
303,663 326,290 334,670 319,495 314,491 
Total assets managed
$3,034,745 3,153,846 3,143,783 3,130,452 3,080,100 


LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS

(Dollars in thousands)
June 30, 2022 (Unaudited)
December 31, 2021
ASSETS:
Cash and due from banks$20,391 16,810 
Interest-bearing demand deposits11,424 1,326 
Total cash and cash equivalents31,815 18,136 
Investment securities:
Equity securities with a readily determinable fair value, at fair value2,250 2,546 
Equity securities without a readily determinable fair value, at cost2,099 2,099 
Debt securities, available-for-sale, at fair value301,232 308,177 
Debt securities, held-to-maturity, at cost22,516 22,972 
Federal Reserve Bank stock, at cost4,652 4,652 
Federal Home Loan Bank stock, at cost5,203 5,203 
Loans, net1,367,644 1,363,939 
Premises and equipment, net34,519 35,385 
Operating leases right of use asset6,101 6,357 
Goodwill59,221 59,221 
Core deposit and other intangibles2,178 2,473 
Bank owned life insurance43,758 43,224 
Interest receivable7,448 7,999 
Other assets21,991 21,246 
TOTAL ASSETS$1,912,627 1,903,629 
LIABILITIES:  
Deposits:  
Noninterest-bearing$499,124 501,531 
Interest-bearing1,159,701 1,127,288 
Total deposits1,658,825 1,628,819 
Short-term borrowings5,000 — 
Long-term debt25,000 10,000 
Operating lease liabilities6,227 6,473 
Accrued interest and other liabilities14,615 19,733 
TOTAL LIABILITIES1,709,667 1,665,025 
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 14,258,074 and 14,213,792 shares at June 30, 2022 and December 31, 2021, respectively; outstanding 11,374,515 and 12,414,956 shares at June 30, 2022 and December 31, 2021, respectively
143,635 143,130 
Retained earnings131,894 126,312 
Treasury shares at cost, 2,883,559 and 1,798,836 shares at June 30, 2022 and December 31, 2021, respectively
(50,629)(29,029)
Accumulated other comprehensive loss, net of taxes(21,940)(1,809)
TOTAL SHAREHOLDERS' EQUITY202,960 238,604 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$1,912,627 1,903,629 


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,
 2022202120222021
INTEREST INCOME:
Interest and fees on loans$14,548 14,108 28,334 28,643 
Dividends on equity securities with a readily determinable fair value14 13 26 26 
Dividends on equity securities without a readily determinable fair value5 5 10 11 
Interest on debt securities, taxable1,254 905 2,349 1,623 
Interest on debt securities, non-taxable188 218 377 442 
Other investments199 180 234 219 
TOTAL INTEREST INCOME16,208 15,429 31,330 30,964 
INTEREST EXPENSE:    
Interest on deposits775 945 1,514 1,973 
Interest on short-term borrowings163 1 249 2 
Interest on long-term debt103 114 177 248 
TOTAL INTEREST EXPENSE1,041 1,060 1,940 2,223 
NET INTEREST INCOME15,167 14,369 29,390 28,741 
PROVISION (CREDIT) FOR LOAN LOSSES377 (15)426 (67)
NET INTEREST INCOME AFTER PROVISION (CREDIT) FOR LOAN LOSSES14,790 14,384 28,964 28,808 
NON-INTEREST INCOME:    
Fiduciary income1,643 1,735 3,338 3,264 
Service charges and fees on deposit accounts1,546 1,519 2,952 2,885 
Bank owned life insurance income269 269 534 536 
Gains from sales of loans64 151 188 194 
Other operating income6 640 66 900 
TOTAL NON-INTEREST INCOME3,528 4,314 7,078 7,779 
NON-INTEREST EXPENSE:    
Salaries and employee benefits7,014 7,111 14,229 13,544 
Equipment expenses428 443 836 811 
Occupancy expense, net735 729 1,510 1,523 
State financial institutions tax437 437 873 881 
Marketing368 357 630 625 
Amortization of intangibles112 260 252 517 
FDIC insurance premiums, net134 123 260 236 
Contracted services679 623 1,289 1,163 
Other real estate owned, net(879)1 (879)2 
Other non-interest expense2,441 2,124 4,719 4,398 
TOTAL NON-INTEREST EXPENSE11,469 12,208 23,719 23,700 
INCOME BEFORE INCOME TAXES6,849 6,490 12,323 12,887 
PROVISION FOR INCOME TAXES1,231 1,200 2,182 2,357 
NET INCOME$5,618 5,290 10,141 10,530 
Dividends declared per common share$0.20 0.19 0.40 0.38 
Earnings per common share:
Basic0.49 0.41 0.87 0.82 
Diluted0.49 0.41 0.87 0.82 
Weighted average common shares outstanding:
Basic11,337,805 12,743,726 11,576,873 12,769,131 
Diluted11,337,805 12,743,726 11,576,873 12,769,146