EX-99.2 3 lcnbform8-k9302023xex992.htm EX-99.2 Document





Exhibit 99.2
LCNB Corp. and Subsidiaries
Financial Highlights
 (Dollars in thousands, except per share amounts)
(Unaudited)
Three Months EndedNine Months Ended
09-30-202306-30-202303-31-202312-31-202209-30-202209-30-202309-30-2022
Condensed Income Statement
Interest income
$19,668 18,703 17,918 17,719 16,704 56,28948,034
Interest expense
6,097 4,526 3,976 1,511 1,260 14,5993,200
Net interest income
13,571 14,177 13,942 16,208 15,444 41,69044,834
Provision for (recovery of) credit losses
(114)30 (57)(19)(157)(141)269
Net interest income after provision for (recovery of) credit losses
13,685 14,147 13,999 16,227 15,601 41,83144,565
Non-interest income
3,578 3,646 3,581 3,629 3,581 10,80510,659
Non-interest expense
12,244 12,078 12,525 12,065 12,350 36,84736,069
Income before income taxes
5,019 5,715 5,055 7,791 6,832 15,78919,155
Provision for income taxes
949 1,021 898 1,383 1,253 2,8683,435
Net income
$4,070 $4,694 $4,157 $6,408 5,579 12,921 15,720 
Supplemental Income Statement Information
Amort/Accret income on acquired loans
$— — 75 249 14475271
Tax-equivalent net interest income
$13,617 14,223 13,989 16,257 15,49541,82944,985
Per Share Data
Dividends per share
$0.21 0.21 0.21 0.21 0.200.630.60
Basic earnings per common share
$0.37 0.42 0.37 0.57 0.491.161.36
Diluted earnings per common share
$0.37 0.42 0.37 0.57 0.491.161.36
Book value per share
$18.10 18.20 18.22 17.82 17.3118.1017.31
Tangible book value per share
$12.72 12.81 12.86 12.48 11.9712.7211.97
Weighted average common shares outstanding:
Basic
11,038,720 11,056,308 11,189,170 11,211,328 11,284,22511,094,18511,478,256
Diluted
11,038,720 11,056,308 11,189,170 11,211,328 11,284,22511,094,18511,478,256
Shares outstanding at period end
11,123,382 11,116,080 11,202,063 11,259,080 11,293,63911,123,38211,293,639
Selected Financial Ratios
Return on average assets
0.82%0.98%0.88%1.34%1.15%0.89%1.09%
Return on average equity
7.92%9.22%8.33%12.90%10.80%8.49%9.91%
Return on average tangible common equity11.21%13.07%11.85%18.59%15.30%12.04%13.86%
Dividend payout ratio
56.76%50.00%56.76%36.84%40.82%54.31%44.12%
Net interest margin (tax equivalent)
3.04%3.28%3.28%3.77%3.54%3.20%3.48%
Efficiency ratio (tax equivalent)
71.21%67.59%71.29%60.67%64.74%70.01%64.82%
Selected Balance Sheet Items
Cash and cash equivalents
$43,422 26,020 31,876 22,701 29,460 
Debt and equity securities
309,094 314,763 328,194 323,167 325,801 
Loans:
Commercial and industrial$125,751 127,553 124,240 120,236 114,694 
Commercial, secured by real estate981,787 961,173 932,208 938,022 908,130 
Residential real estate313,286 312,338 303,051 305,575 316,669 
Consumer27,018 29,007 28,611 28,290 29,451 
Agricultural11,278 9,955 7,523 10,054 8,630 
Other, including deposit overdrafts80 69 62 81 52 
Deferred net origination fees(796)(844)(865)(980)(937)
  Loans, gross
1,458,404 1,439,251 1,394,830 1,401,278 1,376,689 
Less allowance for credit losses on loans
7,932 7,956 7,858 5,646 5,644 
  Loans, net
$1,450,472 $1,431,295 $1,386,972 $1,395,632 $1,371,045 






Three Months EndedNine Months Ended
09-30-202306-30-202303-31-202312-31-202209-30-202209-30-202309-30-2022
Selected Balance Sheet Items, continued
Allowance for Credit Losses on Loans:
Allowance for credit losses, beginning of period$7,956 7,858 5,646 5,644 5,833 
Cumulative change in accounting principle - ASC 326
— — 2,196 — — 
Provision for (recovery of) credit losses9 131 32 (19)(157)
Losses charged off(57)(49)(36)(60)(53)
Recoveries24 16 20 81 21 
Allowance for credit losses, end of period$7,932 7,956 7,858 5,646 5,644 
Total earning assets
$1,787,796 1,756,157 1,736,829 1,726,902 $1,714,196 
Total assets
1,981,668 1,950,763 1,924,808 1,919,398 1,904,975 
Total deposits
1,616,890 1,596,709 1,603,881 1,604,970 1,657,370 
Short-term borrowings
30,000 112,289 76,500 71,455 4,000 
Long-term debt
112,641 18,122 18,598 19,072 24,539 
Total shareholders’ equity
201,349 202,316 204,072 200,675 195,439 
Equity to assets ratio
10.16 %10.37 %10.60 %10.46 %10.26 %
Loans to deposits ratio
90.20 %90.14 %86.97 %87.31 %83.06 %
Tangible common equity (TCE)
$141,508 142,362 144,006 140,498 135,140 
Tangible common assets (TCA)
1,921,827 1,890,809 1,864,742 1,859,221 1,844,676 
TCE/TCA
7.36 %7.53 %7.72 %7.56 %7.33 %
Selected Average Balance Sheet Items
Cash and cash equivalents
$36,177 30,742 35,712 24,330 $35,763 $34,234 $32,393 
Debt and equity securities
313,669 321,537 327,123 323,195 338,299 320,706 339,051 
Loans
$1,451,153 1,405,939 1,389,385 1,383,809 $1,384,520 $1,415,719 $1,379,080 
Less allowance for credit losses on loans
7,958 7,860 7,522 5,647 5,830 7,782 5,623 
Net loans
$1,443,195 1,398,079 1,381,863 1,378,162 $1,378,690 $1,407,937 $1,373,457 
Total earning assets
$1,775,713 1,737,256 1,729,008 1,711,524 1,736,031 1,747,476 1,728,677 
Total assets
1,971,269 1,927,956 1,922,031 1,903,626 1,929,155 1,940,591 1,919,804 
Total deposits
1,610,508 1,604,346 1,583,857 1,637,201 1,669,932 1,599,668 1,657,401 
Short-term borrowings
63,018 79,485 94,591 21,433 5,728 78,916 12,140 
Long-term debt
72,550 18,514 18,983 23,855 24,920 36,878 15,907 
Total shareholders’ equity
203,967 204,085 202,419 197,014 205,051 203,496 212,064 
Equity to assets ratio
10.35 %10.59 %10.53 %10.35 %10.63 %10.49 %11.05 %
Loans to deposits ratio
90.11 %87.63 %87.72 %84.52 %82.91 %88.50 %83.21 %
Asset Quality
Net charge-offs (recoveries)
$33 33 16 (21)32 82131
Other real estate owned
— — — — — ——
Non-accrual loans
$85 451 701 391 465 85 465 
Loans past due 90 days or more and still accruing
176 256 — 39 — 176 — 
Total nonperforming loans
$261 707 701 430 465 261 465 
Net charge-offs (recoveries) to average loans
0.01 %0.01 %0.00 %(0.01)%0.01 %0.01 %0.01 %
Allowance for credit losses on loans to total loans
0.54 %0.55 %0.56 %0.40 %0.41 %
Nonperforming loans to total loans
0.02 %0.05 %0.05 %0.03 %0.03 %
Nonperforming assets to total assets
0.01 %0.04 %0.04 %0.02 %0.02 %






Three Months EndedNine Months Ended
09-30-202306-30-202303-31-202312-31-202209-30-202209-30-202309-30-2022
Assets Under Management
LCNB Corp. total assets
$1,981,668 1,950,763 1,924,808 1,919,398 1,904,975 
Trust and investments (fair value)
731,342 744,149 716,578 678,366 611,409 
Mortgage loans serviced
146,483 143,093 142,167 148,412 145,317 
Cash management
2,445 2,668 1,831 1,925 53,199 
Brokerage accounts (fair value)
368,854 384,889 374,066 347,737 314,144 
Total assets managed
3,230,792 3,225,562 3,159,450 3,095,838 3,029,044 
Reconciliation of Net Income Less Tax-Effected Merger-Related Costs
Net income$4,070 4,694 4,157 6,408 5,579 12,921 15,720 
Merger-related costs302 415 25 — — 742 — 
Tax effect(63)(88)(5)— — (156)— 
Adjusted net income$4,309 5,021 4,177 6,408 5,579 13,507 15,720 
Adjusted basic and diluted earnings per share$0.40 0.45 0.37 0.57 0.49 1.221.36
Adjusted return on average assets0.87 %1.04 %0.88 %1.34 %1.15 %0.93 %1.09 %
Adjusted return on average equity8.38 %9.87 %8.37 %12.90 %10.79 %8.87 %9.91 %








Three Months Ended September 30,Three Months Ended June 30,
202320222023
Average
Outstanding
Balance		Interest
Earned/
Paid		Average
Yield/
Rate		Average
Outstanding
Balance		Interest
Earned/
Paid		Average
Yield/
Rate		Average
Outstanding
Balance		Interest
Earned/
Paid		Average
Yield/
Rate
Loans (1)$1,451,153 17,875 4.89 %$1,384,520 15,026 4.31 %$1,405,939 16,763 4.78 %
Interest-bearing demand deposits10,891 152 5.54 %13,212 80 2.40 %9,780 144 5.91 %
Federal Reserve Bank stock4,652 — — %4,652 — — %4,652 140 12.07 %
Federal Home Loan Bank stock7,007 134 7.59 %4,369 65 5.90 %6,713 121 7.23 %
Investment securities:0
Equity securities3,382 38 4.46 %4,387 20 1.81 %3,386 38 4.50 %
Debt securities, taxable274,494 1,296 1.87 %297,001 1,323 1.77 %282,325 1,323 1.88 %
Debt securities, non-taxable (2)24,134 219 3.60 %27,890 241 3.43 %24,461 220 3.61 %
Total earnings assets1,775,713 19,714 4.40 %1,736,031 16,755 3.83 %1,737,256 18,749 4.33 %
Non-earning assets203,514 198,954 198,560 
Allowance for credit losses(7,958)(5,830)(7,860)
Total assets$1,971,269 $1,929,155 $1,927,956 
Interest-bearing demand and money market deposits$541,487 2,298 1.68 %$539,228 422 0.31 %$521,422 1,597 1.23 %
Savings deposits379,515 129 0.13 %453,420 159 0.14 %395,367 134 0.14 %
IRA and time certificates230,030 1,999 3.45 %168,358 398 0.94 %215,403 1,604 2.99 %
Short-term borrowings63,018 830 5.23 %5,728 71 4.92 %79,485 1,008 5.09 %
Long-term debt72,550 841 4.60 %24,920 210 3.34 %18,514 183 3.96 %
Total interest-bearing liabilities1,286,600 6,097 1.88 %1,191,654 1,260 0.42 %1,230,191 4,526 1.48 %
Demand deposits459,476 508,926 472,154 
Other liabilities21,226 23,524 21,526 
Equity203,967 205,051 204,085 
Total liabilities and equity$1,971,269 $1,929,155 $1,927,956 
Net interest rate spread (3)2.52 %3.41 %2.85 %
Net interest income and net interest margin on a taxable-equivalent basis (4)13,617 3.04 %15,495 3.54 %14,223 3.28 %
Ratio of interest-earning assets to interest-bearing liabilities138.02 %145.68 %141.22 %
(1)Includes non-accrual loans.
(2) Income from tax-exempt securities is included in interest income on a taxable-equivalent basis.  Interest income has been divided
(3)The net interest spread is the difference between the average rate on total interest-earning assets and interest-bearing liabilities.
(4)The net interest margin is the taxable-equivalent net interest income divided by average interest-earning assets.







Exhibit 99.2
LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(Dollars in thousands)
September 30, 2023
(Unaudited)		December 31, 2022
ASSETS:
Cash and due from banks$23,124 20,244 
Interest-bearing demand deposits20,298 2,457 
Total cash and cash equivalents43,422 22,701 
Investment securities:
Equity securities with a readily determinable fair value, at fair value1,254 2,273 
Equity securities without a readily determinable fair value, at cost2,099 2,099 
Debt securities, available-for-sale, at fair value274,500 289,850 
Debt securities, held-to-maturity, at cost, net19,006 19,878 
Federal Reserve Bank stock, at cost4,652 4,652 
Federal Home Loan Bank stock, at cost7,583 4,415 
Loans, net1,450,472 1,395,632 
Premises and equipment, net33,288 33,042 
Operating lease right-of-use assets6,093 6,525 
Goodwill59,221 59,221 
Core deposit and other intangibles, net1,351 1,827 
Bank-owned life insurance45,128 44,298 
Interest receivable8,087 7,482 
Other assets, net25,512 25,503 
TOTAL ASSETS$1,981,668 1,919,398 
LIABILITIES:
Deposits:
Noninterest-bearing$453,146 505,824 
Interest-bearing1,163,744 1,099,146 
Total deposits1,616,890 1,604,970 
Short-term borrowings30,000 71,455 
Long-term debt112,641 19,072 
Operating lease liabilities6,317 6,647 
Accrued interest and other liabilities14,471 16,579 
TOTAL LIABILITIES1,780,319 1,718,723 
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 14,334,765 and 14,270,550 shares at September 30, 2023 and December 31, 2022, respectively; outstanding 11,123,382 and 11,259,080 shares at September 30, 2023 and December 31, 2022, respectively144,865 144,069 
Retained earnings143,211 139,249 
Treasury shares at cost, 3,211,383 and 3,011,470 shares at September 30, 2023 and December 31, 2022, respectively(56,015)(52,689)
Accumulated other comprehensive loss, net of taxes(30,712)(29,954)
TOTAL SHAREHOLDERS' EQUITY201,349 200,675 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$1,981,668 $1,919,398 






Exhibit 99.2
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,
2023202220232022
INTEREST INCOME:
Interest and fees on loans$17,875 15,026 50,781 43,360 
Dividends on equity securities:
With a readily determinable fair value9 14 34 40 
Without a readily determinable fair value29 6 79 16 
Interest on debt securities:
Taxable1,296 1,323 3,962 3,672 
Non-taxable173 190 523 567 
Other investments286 145 910 379 
TOTAL INTEREST INCOME19,668 16,704 56,289 48,034 
INTEREST EXPENSE:
Interest on deposits4,426 979 10,217 2,493 
Interest on short-term borrowings830 71 3,142 320 
Interest on long-term debt841 210 1,240 387 
TOTAL INTEREST EXPENSE6,097 1,260 14,599 3,200 
NET INTEREST INCOME13,571 15,444 41,690 44,834 
PROVISION FOR (RECOVERY OF) CREDIT LOSSES(114)(157)(141)269 
NET INTEREST INCOME AFTER PROVISION FOR (RECOVERY OF) CREDIT LOSSES13,685 15,601 41,831 44,565 
NON-INTEREST INCOME:
Fiduciary income1,736 1,513 5,263 4,851 
Service charges and fees on deposit accounts1,397 1,706 4,324 4,658 
Bank-owned life insurance income282 269 830 803 
Gains from sales of loans29 — 38 188 
Other operating income134 93 350 159 
TOTAL NON-INTEREST INCOME3,578 3,581 10,805 10,659 
NON-INTEREST EXPENSE:
Salaries and employee benefits7,044 7,062 21,454 21,291 
Equipment expenses397 398 1,175 1,234 
Occupancy expense, net805 790 2,367 2,300 
State financial institutions tax396 439 1,189 1,312 
Marketing223 215 735 845 
Amortization of intangibles113 113 336 365 
FDIC insurance premiums, net224 137 663 397 
Contracted services671 613 1,978 1,902 
Other real estate owned, net1 5 3 (874)
Merger-related expenses302 — 742 — 
Other non-interest expense2,068 2,578 6,205 7,297 
TOTAL NON-INTEREST EXPENSE12,244 12,350 36,847 36,069 
INCOME BEFORE INCOME TAXES5,019 6,832 15,789 19,155 
PROVISION FOR INCOME TAXES949 1,253 2,868 3,435 
NET INCOME$4,070 5,579 12,921 15,720 
Earnings per common share:
Basic0.37 0.49 1.16 1.36 
Diluted0.37 0.49 1.16 1.36 






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,
2023202220232022
Weighted average common shares outstanding:
Basic11,038,720 11,284,225 11,094,185 11,478,256 
Diluted11,038,720 11,284,225 11,094,185 11,478,256