EX-99.2 3 lcnbform6302023xex992xlink.htm EX-99.2 Document





Exhibit 99.2

LCNB Corp. and Subsidiaries
Financial Highlights
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months EndedSix Months Ended
06-30-202303-31-202312-31-202209-30-202206-30-202206-30-202306-30-2022
Condensed Income Statement
Interest income
$18,703 17,918 17,719 16,704 16,208 36,62131,330
Interest expense
4,526 3,976 1,511 1,260 1,041 8,5021,940
Net interest income
14,177 13,942 16,208 15,444 15,167 28,11929,390
Provision for (recovery of) credit losses
30 (57)(19)(157)377 (27)426
Net interest income after provision for (recovery of) credit losses
14,147 13,999 16,227 15,601 14,790 28,14628,964
Non-interest income
3,646 3,581 3,629 3,581 3,528 7,2277,078
Non-interest expense
12,078 12,525 12,065 12,350 11,469 24,60323,719
Income before income taxes
5,715 5,055 7,791 6,832 6,849 10,77012,323
Provision for income taxes
1,021 898 1,383 1,253 1,231 1,9192,182
Net income
$4,694 4,157 6,408 5,579 5,618 8,851 10,141 
Supplemental Income Statement Information
Amort/Accret income on acquired loans
$— 74 249 144 6174127
Tax-equivalent net interest income
$14,223 13,989 16,257 15,495 15,21728,21229,490
Per Share Data
Dividends per share
$0.21 0.21 0.21 0.20 0.200.420.40
Basic earnings per common share
$0.42 0.37 0.57 0.49 0.490.790.87
Diluted earnings per common share
$0.42 0.37 0.57 0.49 0.490.790.87
Book value per share
$18.20 18.22 17.82 17.31 17.8418.2017.84
Tangible book value per share
$12.81 12.86 12.48 11.97 12.5312.8112.53
Weighted average common shares outstanding:
Basic
11,056,308 11,189,170 11,211,328 11,284,225 11,337,80511,122,37111,576,873
Diluted
11,056,308 11,189,170 11,211,328 11,284,225 11,337,80511,122,37111,576,873
Shares outstanding at period end
11,116,080 11,202,063 11,259,080 11,293,639 11,374,51511,116,08011,374,515
Selected Financial Ratios
Return on average assets
0.98%0.88%1.34%1.15%1.18%0.93%1.07%
Return on average equity
9.22%8.33%12.90%10.80%10.96%8.78%9.48%
Return on average tangible common equity13.07%11.85%18.59%15.30%15.52%12.46%13.18%
Dividend payout ratio
50.00%56.76%36.84%40.82%40.82%53.16%45.98%
Net interest margin (tax equivalent)
3.28%3.28%3.77%3.54%3.54%3.28%3.45%
Efficiency ratio (tax equivalent)
67.59%71.29%60.67%64.74%61.18%69.42%64.86%
Selected Balance Sheet Items
Cash and cash equivalents
$26,020 31,876 22,701 29,460 31.815 
Debt and equity securities
314,763 328,194 323,167 325,801 337,952 
Loans:
Commercial and industrial
$127,553 124,240 120,236 114,694 114,971 
Commercial, secured by real estate
961,173 932,208 938,022 908,130 905,703 
Residential real estate
312,338 303,051 305,575 316,669 315,930 
Consumer
29,007 28,611 28,290 29,451 30,308 
  Agricultural
9,955 7,523 10,054 8,630 7,412 
Other, including deposit overdrafts
69 62 81 52 81 
Deferred net origination fees
(844)(865)(980)(937)(928)
  Loans, gross
1,439,251 1,394,830 1,401,278 1,376,689 1,373,477 
Less allowance for credit losses on loans
7,956 7,858 5,646 5,644 5,833 
  Loans, net
$1,431,295 1,386,972 1,395,632 1,371,045 1,367,644 






Three Months EndedSix Months Ended
06-30-202303-31-202312-31-202209-30-202206-30-202206-30-202306-30-2022
Selected Balance Sheet Items, continued
Allowance for Credit Losses on Loans:
Allowance for credit losses, beginning of period$7,858 5,646 5,644 5,833 5,530 
Cumulative change in accounting principle; adoption of ASU 2016-13— 2,196 — — — 
Provision for (recovery of) credit losses131 32 (19)(157)377 
Losses charged off(49)(36)(60)(53)(116)
Recoveries16 20 81 21 42 
Allowance for credit losses, end of period$7,956 7,858 5,646 5,644 5,833 
Total earning assets
$1,756,157 1,736,829 1,726,902 1,714,196 $1,722,853 
Total assets
1,950,763 1,924,531 1,919,121 1,904,700 1,912,901 
Total deposits
1,596,709 1,603,881 1,604,970 1,657,370 1,658,825 
Short-term borrowings
112,289 76,500 71,455 4,000 5,000 
Long-term debt
18,122 18,598 19,072 24,539 25,000 
Total shareholders’ equity
202,316 204,072 200,675 195,439 202,960 
Equity to assets ratio
10.37 %10.60 %10.46 %10.26 %10.61 %
Loans to deposits ratio
90.14 %86.97 %87.31 %83.06 %82.80 %
Tangible common equity (TCE)
$142,362 144,006 140,498 135,149 142,557 
Tangible common assets (TCA)
1,890,809 1,864,465 1,858,944 1,844,410 1,852,224 
TCE/TCA
7.53 %7.72 %7.56 %7.33 %7.70 %
Selected Average Balance Sheet Items
Cash and cash equivalents
$30,742 35,712 24,330 35,763 $28,787 $33,205 $30,788 
Debt and equity securities
321,537 327,123 323,195 338,299 338,149 324,320 339,432 
Loans
$1,405,939 1,389,385 1,383,809 1,384,520 $1,375,710 $1,397,708 $1,376,315 
Less allowance for credit losses on loans
7,860 7,522 5,647 5,830 5,532 7,692 5,517 
Net loans
$1,398,079 1,381,863 1,378,162 1,378,690 $1,370,178 $1,390,016 $1,370,798 
Total earning assets
$1,737,256 1,729,008 1,711,524 1,736,031 1,722,503 1,733,160 1,724,938 
Total assets
1,927,957 1,921,742 1,903,338 1,928,868 1,912,574 1,925,004 1,915,051 
Total deposits
1,604,346 1,583,857 1,637,201 1,669,932 1,655,389 1,594,159 1,651,032 
Short-term borrowings
79,485 94,591 21,433 5,728 18,263 86,996 15,399 
Long-term debt
18,514 18,983 23,855 24,920 12,637 18,747 11,326 
Total shareholders’ equity
204,085 202,419 197,014 205,051 205,645 203,257 215,629 
Equity to assets ratio
10.59 %10.53 %10.35 %10.63 %10.75 %10.56 %11.26 %
Loans to deposits ratio
87.63 %87.72 %84.52 %82.91 %83.10 %87.68 %83.36 %
Asset Quality
Net charge-offs (recoveries)
$33 16 (21)32 74 4999
Other real estate owned
— — — — — ——
Non-accrual loans
$454 701 391 465 599 454 599 
Loans past due 90 days or more and still accruing
256 — 39 — 0 256 — 
Total nonperforming loans
$710 701 430 465 599 710 599 
Net charge-offs (recoveries) to average loans
0.01 %0.00 %(0.01)%0.01 %0.02 %0.01 %0.03 %
Allowance for credit losses on loans to total loans
0.55 %0.56 %0.40 %0.41 %0.42 %
Nonperforming loans to total loans
0.05 %0.05 %0.03 %0.03 %0.04 %
Nonperforming assets to total assets
0.04 %0.04 %0.02 %0.02 %0.03 %






Three Months EndedSix Months Ended
06-30-202303-31-202312-31-202209-30-202206-30-202206-30-202306-30-2022
Assets Under Management
LCNB Corp. total assets
$1,950,763 1,924,531 1,919,121 1,904,700 1,912,901 
Trust and investments (fair value)
744,149 716,578 678,366 611,409 625,984 
Mortgage loans serviced
143,093 142,167 148,412 145,317 153,557 
Cash management
2,668 1,831 1,925 53,199 38,914 
Brokerage accounts (fair value)
384,889 374,066 347,737 314,144 303,663 
Total assets managed
3,225,562 3,159,173 3,095,561 3,028,769 3,035,019 
Reconciliation of Net Income Less Tax-Effected Merger-Related Costs
Net income$4,694 4,157 6,408 5,579 5,618 8,851 10,141 
Merger-related costs415 25 — — — 440—
Tax effect(63)(4)— — — (67)—
Adjusted net income$5,046 4,178 6,408 5,579 5,618 9,224 10,141 
Adjusted basic and diluted earnings per share$0.45 0.37 0.57 0.49 0.49 0.820.87
Adjusted return on average assets1.05 %0.88 %1.34 %1.15 %1.18 %0.97 %1.07 %
Adjusted return on average equity9.92 %8.37 %12.90 %10.80 %10.96 %9.15 %9.48 %








LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS

(Dollars in thousands)
June 30, 2023
(Unaudited)		December 31, 2022
ASSETS:
Cash and due from banks$23,877 20,244 
Interest-bearing demand deposits2,143 2,457 
Total cash and cash equivalents26,020 22,701 
Investment securities:
Equity securities with a readily determinable fair value, at fair value1,279 2,273 
Equity securities without a readily determinable fair value, at cost2,099 2,099 
Debt securities, available-for-sale, at fair value281,156 289,850 
Debt securities, held-to-maturity, at cost, net of allowance for credit losses19,117 19,878 
Federal Reserve Bank stock, at cost4,652 4,652 
Federal Home Loan Bank stock, at cost6,460 4,415 
Loans, net of allowance for credit losses1,431,295 1,395,632 
Premises and equipment, net33,145 33,042 
Operating leases right of use asset6,260 6,525 
Goodwill59,221 59,221 
Core deposit and other intangibles1,497 1,827 
Bank owned life insurance44,846 44,298 
Interest receivable7,811 7,482 
Other assets25,905 25,503 
TOTAL ASSETS$1,950,763 1,919,398 
LIABILITIES:
Deposits:
Noninterest-bearing$480,288 505,824 
Interest-bearing1,116,421 1,099,146 
Total deposits1,596,709 1,604,970 
Short-term borrowings112,289 71,455 
Long-term debt18,122 19,072 
Operating lease liabilities6,434 6,647 
Allowance for credit losses on off-balance sheet credit exposures381 — 
Accrued interest and other liabilities14,512 16,579 
TOTAL LIABILITIES1,748,447 1,718,723 
COMMITMENTS AND CONTINGENT LIABILITIES
SHAREHOLDERS' EQUITY:
Preferred shares – no par value, authorized 1,000,000 shares, none outstanding123,422 122,839 
Common shares –no par value, authorized 19,000,000; issued 14,327,463 and 14,270,550 shares at June 30, 2023 and December 31, 2022, respectively; outstanding 11,116,080 and 11,259,080 shares at March 31, 2023 and December 31, 2022, respectively21,249 21,230 
Retained earnings141,431 139,249 
Treasury shares at cost, 3,211,383 and 3,011,470 shares at June 30, 2023 and December 31, 2022, respectively(56,015)(52,689)






LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS

(Dollars in thousands)
June 30, 2023
(Unaudited)		December 31, 2022
Accumulated other comprehensive loss, net of taxes(27,771)(29,954)
TOTAL SHAREHOLDERS' EQUITY202,316 200,675 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$1,950,763 1,919,398 






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,
2023202220232022
INTEREST INCOME:
Interest and fees on loans$16,763 14,548 32,906 28,334 
Dividends on equity securities with a readily determinable fair value8 14 25 26 
Dividends on equity securities without a readily determinable fair value30 5 50 10 
Interest on debt securities, taxable1,323 1,254 2,666 2,349 
Interest on debt securities, non-taxable174 188 350 377 
Other investments405 199 624 234 
TOTAL INTEREST INCOME18,703 16,208 36,621 31,330 
INTEREST EXPENSE:
Interest on deposits3,335 775 5,791 1,514 
Interest on short-term borrowings1,008 163 2,312 249 
Interest on long-term debt183 103 399 177 
TOTAL INTEREST EXPENSE4,526 1,041 8,502 1,940 
NET INTEREST INCOME14,177 15,167 28,119 29,390 
Provision for credit losses on loans132 377 164 426 
Provision for (recovery of) credit losses on debt securities, held-to-maturity(1)— (1)— 
Recovery of credit losses on off-balance sheet credit exposures(101)— (190)— 
TOTAL PROVISION FOR (RECOVERY OF) CREDIT LOSSES30 377 (27)426 
NET INTEREST INCOME AFTER PROVISION FOR (RECOVERY OF) CREDIT LOSSES14,147 14,790 28,146 28,964 
NON-INTEREST INCOME:
Fiduciary income1,787 1,643 3,527 3,338 
Service charges and fees on deposit accounts1,445 1,546 2,927 2,952 
Bank owned life insurance income277 269 548 534 
Gains from sales of loans3 64 9 188 
Other operating income134 6 216 66 
TOTAL NON-INTEREST INCOME3,646 3,528 7,227 7,078 
NON-INTEREST EXPENSE:
Salaries and employee benefits7,061 7,014 14,410 14,229 
Equipment expenses417 428 778 836 
Occupancy expense, net599 735 1,562 1,510 
State financial institutions tax396 437 793 873 
Marketing320 368 512 630 
Amortization of intangibles112 112 223 252 
FDIC insurance premiums, net224 134 439 260 
Contracted services666 679 1,307 1,289 
Other real estate owned, net1 (879)2 (879)
Merger-related expenses415 — 440 — 
Other non-interest expense1,867 2,441 4,137 4,719 
TOTAL NON-INTEREST EXPENSE12,078 11,469 24,603 23,719 
INCOME BEFORE INCOME TAXES5,715 6,849 10,770 12,323 
PROVISION FOR INCOME TAXES1,021 1,231 1,919 2,182 
NET INCOME$4,694 5,618 8,851 10,141 






Three Months Ended
June 30,		Six Months Ended
June 30,
2023202220232022
Earnings per common share:
Basic0.42 0.49 0.79 0.87 
Diluted0.42 0.49 0.79 0.87 
Weighted average common shares outstanding:
Basic11,056,308 11,337,805 11,122,371 11,576,873 
Diluted11,056,308 11,337,805 11,122,371 11,576,873