EX-99.2 3 lcnbform8-k12312023xex992.htm EX-99.2 Document





Exhibit 99.2
LCNB Corp. and Subsidiaries
Financial Highlights
 (Dollars in thousands, except per share amounts)
(Unaudited)
Three Months EndedTwelve Months Ended
12-31-202309-30-202306-30-202303-31-202312-31-202212-31-202312-31-2022
Condensed Income Statement
Interest income
$23,310 $19,668 18,703 17,918 17,719 79,59965,753
Interest expense
8,651 6,097 4,526 3,976 1,511 23,2504,711
Net interest income
14,659 13,571 14,177 13,942 16,208 56,34961,042
Provision for (recovery of) credit losses
2,218 (114)30 (57)(19)2,077250
Net interest income after provision for (recovery of) credit losses
12,441 13,685 14,147 13,999 16,227 54,27260,792
Non-interest income
4,606 3,578 3,646 3,581 3,629 15,41114,288
Non-interest expense
17,576 12,244 12,078 12,525 12,065 54,42348,134
Income before income taxes
(529)5,019 5,715 5,055 7,791 15,26026,946
Provision for (benefit from) income taxes
(236)949 1,021 898 1,383 2,6324,818
Net income (loss)
$(293)$4,070 $4,694 $4,157 6,408 12,628 22,128 
Supplemental Income Statement Information
Amort/Accret income on acquired loans
$410 $— — 75 249484520
Tax-equivalent net interest income
$14,703 $13,617 14,223 13,989 16,25756,53261,242
Per Share Data
Dividends per share
$0.22 $0.21 0.21 0.21 0.210.850.81
Basic earnings (loss) per common share
$(0.02)$0.37 0.42 0.37 0.571.101.93
Diluted earnings (loss) per common share
$(0.02)$0.37 0.42 0.37 0.571.101.93
Book value per share
$17.86 $18.10 18.20 18.22 17.8217.8617.82
Tangible book value per share
$11.16 $12.72 12.81 12.86 12.4811.1612.48
Weighted average common shares outstanding:
Basic
12,378,289 11,038,720 11,056,308 11,189,170 11,211,32811,417,85711,410,981
Diluted
12,378,289 11,038,720 11,056,308 11,189,170 11,211,32811,417,85711,410,981
Shares outstanding at period end
13,173,569 11,123,382 11,116,080 11,202,063 11,259,08013,173,56911,259,080
Selected Financial Ratios
Return on average assets
(0.05)%0.82%0.98%0.88%1.34%0.63%1.16%
Return on average equity
(0.53)%7.92%9.22%8.33%12.90%6.08%10.62%
Return on average tangible common equity(0.72)%11.21%13.07%11.85%18.59%8.54%14.96%
Dividend payout ratio
NM56.76%50.00%56.76%36.84%77.27%41.97%
Net interest margin (tax equivalent)
2.99%3.04%3.28%3.28%3.77%3.14%3.55%
Efficiency ratio (tax equivalent)
91.02%71.21%67.59%71.29%60.67%75.65%63.73%
Selected Balance Sheet Items
Cash and cash equivalents
$39,723 $43,422 26,020 31,876 22,701 
Debt and equity securities
318,723 309,094 314,763 328,194 323,167 
Loans:
Commercial and industrial$120,411 $125,751 127,553 124,240 120,236 
Commercial, secured by real estate1,107,556 981,787 961,173 932,208 938,022 
Residential real estate459,073 313,286 312,338 303,051 305,575 
Consumer25,578 27,018 29,007 28,611 28,290 
Agricultural10,952 11,278 9,955 7,523 10,054 
Other, including deposit overdrafts82 80 69 62 81 
Deferred net origination fees(181)(796)(844)(865)(980)
  Loans, gross
1,723,471 1,458,404 1,439,251 1,394,830 1,401,278 
Less allowance for credit losses on loans
10,525 7,932 7,956 7,858 5,646 
  Loans, net
$1,712,946 $1,450,472 $1,431,295 $1,386,972 $1,395,632 
"NM" - Not Meaningful






Three Months EndedTwelve Months Ended
12-31-202309-30-202306-30-202303-31-202312-31-202212-31-202312-31-2022
Selected Balance Sheet Items, continued
Allowance for Credit Losses on Loans:
Allowance for credit losses, beginning of period$7,932 7,956 7,858 5,646 5,644 
Cumulative change in accounting principle - ASC 326
— — — 2,196 — 
Fair value adjustment for purchased credit deteriorated loans493 — — — — 
Provision for (recovery of) credit losses2,203 9 131 32 (19)
Losses charged off(126)(57)(49)(36)(60)
Recoveries23 24 16 20 81 
Allowance for credit losses, end of period$10,525 7,932 7,956 7,858 5,646 
Total earning assets
$2,045,382 $1,787,796 1,756,157 1,736,829 $1,726,902 
Total assets
2,291,592 1,981,668 1,950,763 1,924,808 1,919,398 
Total deposits
1,824,389 1,616,890 1,596,709 1,603,881 1,604,970 
Short-term borrowings
97,395 30,000 112,289 76,500 71,455 
Long-term debt
113,123 112,641 18,122 18,598 19,072 
Total shareholders’ equity
235,303 201,349 202,316 204,072 200,675 
Equity to assets ratio
10.27 %10.16 %10.37 %10.60 %10.46 %
Loans to deposits ratio
94.47 %90.20 %90.14 %86.97 %87.31 %
Tangible common equity (TCE)
$146,999 $141,508 142,362 144,006 140,489 
Tangible common assets (TCA)
2,203,288 1,921,827 1,890,809 1,864,742 1,859,212 
TCE/TCA
6.67 %7.36 %7.53 %7.72 %7.56 %
Selected Average Balance Sheet Items
Cash and cash equivalents
$49,436 $36,177 30,742 35,712 $24,330 $38,040 $30,364 
Debt and equity securities
310,274 313,669 321,537 327,123 323,195 318,082 335,051 
Loans
$1,622,911 $1,451,153 1,405,939 1,389,385 $1,383,809 $1,467,981 $1,380,272 
Less allowance for credit losses on loans
8,826 7,958 7,860 7,522 5,647 8,046 5,629 
Net loans
$1,614,085 1,443,195 1,398,079 1,381,863 $1,378,162 $1,459,935 $1,374,643 
Total earning assets
$1,952,121 $1,775,713 1,737,256 1,729,008 1,711,524 1,799,102 1,724,350 
Total assets
2,182,477 1,971,269 1,927,956 1,922,031 1,903,624 2,001,565 1,915,716 
Total deposits
1,759,677 1,610,508 1,604,346 1,583,857 1,637,201 1,640,000 1,652,309 
Short-term borrowings
64,899 63,018 79,485 94,591 21,433 75,383 14,482 
Long-term debt
115,907 72,550 18,514 18,983 23,855 56,798 17,910 
Total shareholders’ equity
220,678 203,967 204,085 202,419 197,014 207,827 208,271 
Equity to assets ratio
10.11 %10.35 %10.59 %10.53 %10.35 %10.38 %10.87 %
Loans to deposits ratio
92.23 %90.11 %87.63 %87.72 %84.52 %89.51 %83.54 %
Asset Quality
Net charge-offs (recoveries)
$102 $33 33 16 (21)184110
Other real estate owned
— — — — — ——
Non-accrual loans
$80 $85 451 701 391 80 391 
Loans past due 90 days or more and still accruing
72 176 256 — 39 72 39 
Total nonperforming loans
$152 261 707 701 430 152 430 
Net charge-offs (recoveries) to average loans
0.02 %0.01 %0.01 %0.00 %(0.01)%0.01 %0.01 %
Allowance for credit losses on loans to total loans
0.61 %0.54 %0.55 %0.56 %0.40 %
Nonperforming loans to total loans
0.01 %0.02 %0.05 %0.05 %0.03 %
Nonperforming assets to total assets
0.01 %0.01 %0.04 %0.04 %0.02 %






Three Months EndedTwelve Months Ended
12-31-202309-30-202306-30-202303-31-202312-31-202212-31-202312-31-2022
Assets Under Management
LCNB Corp. total assets
$2,291,592 1,981,668 1,950,763 1,924,808 1,919,398 
Trust and investments (fair value)
806,770 731,342 744,149 716,578 678,366 
Mortgage loans serviced
391,800 146,483 143,093 142,167 148,412 
Cash management
2,375 2,445 2,668 1,831 1,925 
Brokerage accounts (fair value)
392,390 368,854 384,889 374,066 347,737 
Total assets managed
3,884,927 3,230,792 3,225,562 3,159,450 3,095,838 
Reconciliation of Net Income Less Tax-Effected Merger-Related Costs
Net income (loss)
$(293)4,070 4,694 4,157 6,408 12,628 22,128 
Merger expenses
3,914 302 415 25 — 4,656 — 
Provision for credit losses on non-PCD loans
1,722 — — — — 1,722 — 
Tax effect(1,102)(3)(63)(4)— (1,172)— 
Adjusted net income
$4,241 4,369 5,046 4,178 6,408 17,834 22,128 
Adjusted basic and diluted earnings per share$0.34 $0.40 0.45 0.37 0.57 1.561.93
Adjusted return on average assets0.77 %0.88 %1.05 %0.88 %1.34 %0.89 %1.16 %
Adjusted return on average equity7.62 %8.50 %9.92 %8.37 %12.90 %8.58 %10.62 %








Three Months Ended December 31,Three Months Ended September 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)$1,622,911 21,113 5.16 %$1,383,809 15,887 4.55 %$1,451,153 17,875 4.89 %
Interest-bearing demand deposits18,936 280 5.87 %4,520 56 4.92 %10,891 152 5.54 %
Federal Reserve Bank stock4,930 144 11.59 %4,652 140 11.94 %4,652 — — %
Federal Home Loan Bank stock12,607 273 8.59 %4,106 66 6.38 %7,007 134 7.59 %
Investment securities:
Equity securities4,415 62 5.57 %4,353 29 2.64 %3,382 38 4.46 %
Debt securities, taxable265,736 1,273 1.90 %283,442 1,355 1.90 %274,494 1,296 1.87 %
Debt securities, non-taxable (2)22,586 209 3.67 %26,642 235 3.50 %24,134 219 3.60 %
Total earnings assets1,952,121 23,354 4.75 %1,711,524 17,768 4.12 %1,775,713 19,714 4.40 %
Non-earning assets239,182 197,747 203,514 
Allowance for credit losses(8,826)(5,647)(7,958)
Total assets$2,182,477 $1,903,624 $1,971,269 
Interest-bearing demand and money market deposits$574,349 2,710 1.87 %$520,158 610 0.47 %$541,487 2,298 1.68 %
Savings deposits402,791 323 0.32 %444,632 153 0.14 %379,515 129 0.13 %
IRA and time certificates302,434 3,321 4.36 %150,175 426 1.13 %230,030 1,999 3.45 %
Short-term borrowings64,899 918 5.61 %21,433 96 1.78 %63,018 830 5.23 %
Long-term debt115,907 1,379 4.72 %23,855 226 3.76 %72,550 841 4.60 %
Total interest-bearing liabilities1,460,380 8,651 2.35 %1,160,253 1,511 0.52 %1,286,600 6,097 1.88 %
Demand deposits480,103 522,236 459,476 
Other liabilities21,316 24,121 21,226 
Equity220,678 197,014 203,967 
Total liabilities and equity$2,182,477 $1,903,624 $1,971,269 
Net interest rate spread (3)2.40 %3.60 %2.52 %
Net interest income and net interest margin on a taxable-equivalent basis (4)14,703 2.99 %16,257 3.77 %13,617 3.04 %
Ratio of interest-earning assets to interest-bearing liabilities133.67 %147.51 %138.02 %
(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)
December 31, 2023
(Unaudited)		December 31, 2022
ASSETS:
Cash and due from banks$36,535 20,244 
Interest-bearing demand deposits3,188 2,457 
Total cash and cash equivalents39,723 22,701 
Investment securities:
Equity securities with a readily determinable fair value, at fair value1,336 2,273 
Equity securities without a readily determinable fair value, at cost3,666 2,099 
Debt securities, available-for-sale, at fair value276,601 289,850 
Debt securities, held-to-maturity, at cost, net16,858 19,878 
Federal Reserve Bank stock, at cost5,086 4,652 
Federal Home Loan Bank stock, at cost15,176 4,415 
Loans, net1,712,946 1,395,632 
Premises and equipment, net36,302 33,042 
Operating lease right-of-use assets6,000 6,525 
Goodwill79,509 59,221 
Core deposit and other intangibles, net9,494 1,827 
Bank-owned life insurance49,847 44,298 
Interest receivable8,405 7,482 
Other assets, net30,643 25,503 
TOTAL ASSETS$2,291,592 1,919,398 
LIABILITIES:
Deposits:
Noninterest-bearing$462,267 505,824 
Interest-bearing1,362,122 1,099,146 
Total deposits1,824,389 1,604,970 
Short-term borrowings97,395 71,455 
Long-term debt113,123 19,072 
Operating lease liabilities6,261 6,647 
Accrued interest and other liabilities15,121 16,579 
TOTAL LIABILITIES2,056,289 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 16,384,952 and 14,270,550 shares at December 31, 2023 and December 31, 2022, respectively; outstanding 13,173,569 and 11,259,080 shares at December 31, 2023 and December 31, 2022, respectively173,637 144,069 
Retained earnings140,017 139,249 
Treasury shares at cost, 3,211,383 and 3,011,470 shares at December 31, 2023 and December 31, 2022, respectively(56,015)(52,689)
Accumulated other comprehensive loss, net of taxes(22,336)(29,954)
TOTAL SHAREHOLDERS' EQUITY235,303 200,675 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$2,291,592 $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
December 31,		Twelve Months Ended
December 31,
2023202220232022
INTEREST INCOME:
Interest and fees on loans$21,113 15,887 71,894 59,247 
Dividends on equity securities:
With a readily determinable fair value9 16 43 56 
Without a readily determinable fair value53 13 132 29 
Interest on debt securities:
Taxable1,273 1,355 5,235 5,027 
Non-taxable165 186 688 753 
Other investments697 262 1,607 641 
TOTAL INTEREST INCOME23,310 17,719 79,599 65,753 
INTEREST EXPENSE:
Interest on deposits6,354 1,189 16,571 3,682 
Interest on short-term borrowings918 96 4,060 416 
Interest on long-term debt1,379 226 2,619 613 
TOTAL INTEREST EXPENSE8,651 1,511 23,250 4,711 
NET INTEREST INCOME14,659 16,208 56,349 61,042 
PROVISION FOR (RECOVERY OF) CREDIT LOSSES2,218 (19)2,077 250 
NET INTEREST INCOME AFTER PROVISION FOR (RECOVERY OF) CREDIT LOSSES12,441 16,227 54,272 60,792 
NON-INTEREST INCOME:
Fiduciary income1,828 1,617 7,091 6,468 
Service charges and fees on deposit accounts1,532 1,532 5,856 6,190 
Bank-owned life insurance income306 271 1,136 1,074 
Gains from sales of loans659 8 697 196 
Other operating income281 201 631 360 
TOTAL NON-INTEREST INCOME4,606 3,629 15,411 14,288 
NON-INTEREST EXPENSE:
Salaries and employee benefits7,654 7,192 29,108 28,483 
Equipment expenses441 395 1,616 1,629 
Occupancy expense, net934 767 3,301 3,067 
State financial institutions tax439 428 1,628 1,740 
Marketing366 339 1,101 1,184 
Amortization of intangibles196 113 532 478 
FDIC insurance premiums, net269 133 932 530 
Contracted services798 601 2,776 2,503 
Other real estate owned, net1 8 4 (866)
Merger-related expenses3,914 — 4,656 — 
Other non-interest expense2,564 2,089 8,769 9,386 
TOTAL NON-INTEREST EXPENSE17,576 12,065 54,423 48,134 
INCOME BEFORE INCOME TAXES(529)7,791 15,260 26,946 
PROVISION FOR (BENEFIT FROM) INCOME TAXES(236)1,383 2,632 4,818 
NET INCOME$(293)6,408 12,628 22,128 
Earnings per common share:
Basic(0.02)0.57 1.10 1.93 
Diluted(0.02)0.57 1.10 1.93 
Weighted average common shares outstanding:
Basic12,378,289 11,211,328 11,417,857 11,410,981 
Diluted12,378,289 11,211,328 11,417,857 11,410,981