EX-99.2 3 lcnbform8-k03312024xex992.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
03-31-202412-31-202309-30-202306-30-202303-31-2023
Condensed Income Statement
Interest income
$24,758 $23,310 19,668 18,703 17,918 
Interest expense
10,863 8,651 6,097 4,526 3,976 
Net interest income
13,895 14,659 13,571 14,177 13,942 
Provision for (recovery of) credit losses
125 2,218 (114)30 (57)
Net interest income after provision for (recovery of) credit losses
13,770 12,441 13,685 14,147 13,999 
Non-interest income
3,929 4,606 3,578 3,646 3,581 
Non-interest expense
15,472 17,576 12,244 12,078 12,525 
Income (loss) before income taxes
2,227 (529)5,019 5,715 5,055 
Provision for (benefit from) income taxes
312 (236)949 1,021 898 
Net income (loss)
$1,915 $(293)$4,070 $4,694 4,157 
Supplemental Income Statement Information
Amort/Accret income on acquired loans
$776 $410 — — 75
Tax-equivalent net interest income
$13,933 $14,703 13,617 14,223 13,989
Per Share Data
Dividends per share
$0.22 $0.22 0.21 0.21 0.21
Basic earnings (loss) per common share
$0.15 $(0.02)0.37 0.42 0.37
Diluted earnings (loss) per common share
$0.15 $(0.02)0.37 0.42 0.37
Book value per share
$17.67 $17.86 18.10 18.20 18.22
Tangible book value per share
$11.03 $11.16 12.72 12.81 12.86
Weighted average common shares outstanding:
Basic
13,112,302 12,378,289 11,038,720 11,056,308 11,189,170
Diluted
13,112,302 12,378,289 11,038,720 11,056,308 11,189,170
Shares outstanding at period end
13,224,276 13,173,569 11,123,382 11,116,080 11,202,063
Selected Financial Ratios
Return on average assets
0.34%(0.05)%0.82%0.98%0.88%
Return on average equity
3.28%(0.53)%7.92%9.22%8.33%
Return on average tangible common equity4.39%(0.72)%11.21%13.07%11.85%
Dividend payout ratio
146.67%NM56.76%50.00%56.76%
Net interest margin (tax equivalent)
2.72%2.99%3.04%3.28%3.28%
Efficiency ratio (tax equivalent)
86.62%91.02%71.21%67.59%71.29%
Selected Balance Sheet Items
Cash and cash equivalents
$32,951 $39,723 43,422 26,020 31,876 
Debt and equity securities
306,775 318,723 309,094 314,763 328,194 
Loans:
Commercial and industrial$122,229 $120,411 125,751 127,553 124,240 
Commercial, secured by real estate1,099,601 1,107,556 981,787 961,173 932,208 
Residential real estate398,250 459,073 313,286 312,338 303,051 
Consumer24,137 25,578 27,018 29,007 28,611 
Agricultural12,647 10,952 11,278 9,955 7,523 
Other, including deposit overdrafts73 82 80 69 62 
Deferred net origination fees(583)(181)(796)(844)(865)
  Loans, gross
1,656,354 1,723,471 1,458,404 1,439,251 1,394,830 
Less allowance for credit losses
10,557 10,525 7,932 7,956 7,858 
  Loans, net
$1,645,797 1,712,946 1,450,472 1,431,295 1,386,972 
Loans held for sale75,581 — — — — 
NM - Not Meaningful






Three Months Ended
03-31-202412-31-202309-30-202306-30-202303-31-2023
Selected Balance Sheet Items, continued
Allowance for Credit Losses on Loans:
Allowance for credit losses, beginning of period$10,525 7,932 7,956 7,858 5,646 
Cumulative change in accounting principle - ASC 326
— — — — 2,196 
Fair value adjustment for purchased credit deteriorated loans— 493 — — — 
Provision for credit losses
77 2,203 9 131 32 
Losses charged off(78)(126)(57)(49)(36)
Recoveries33 23 24 16 20 
Allowance for credit losses, end of period$10,557 10,525 7,932 7,956 7,858 
Total earning assets
$1,971,130 $2,045,382 1,787,796 1,756,157 $1,736,829 
Total assets
2,283,151 2,291,592 1,981,668 1,950,763 1,924,531 
Total deposits
1,858,493 1,824,389 1,616,890 1,596,709 1,603,881 
Short-term borrowings
10,000 97,395 30,000 112,289 76,500 
Long-term debt
162,638 113,123 112,641 18,122 18,598 
Total shareholders’ equity
233,663 235,303 201,349 202,316 204,072 
Equity to assets ratio
10.23 %10.27 %10.16 %10.37 %10.60 %
Loans to deposits ratio
89.12 %94.47 %90.20 %90.14 %86.97 %
Tangible common equity (TCE)
$145,850 $146,999 141,508 142,362 144,006 
Tangible common assets (TCA)
2,195,338 2,203,288 1,921,827 1,890,809 1,864,457 
TCE/TCA
6.64 %6.67 %7.36 %7.53 %7.72 %
Selected Average Balance Sheet Items
Cash and cash equivalents
$51,366 $49,436 36,177 30,742 35,712 
Debt and equity securities
310,771 310,274 313,669 321,537 327,123 
Loans, including loans held for sale
$1,722,568 $1,622,911 1,451,153 1,405,939 1,389,385 
Less allowance for credit losses on loans
10,523 8,826 7,958 7,860 7,522 
Net loans
$1,712,045 1,614,085 1,443,195 1,398,079 1,381,863 
Total earning assets, including loans held for sale
$2,056,656 $1,952,121 1,775,713 1,737,256 1,729,008 
Total assets
2,294,766 2,182,477 1,971,269 1,927,956 1,921,742 
Total deposits
1,824,546 1,759,677 1,610,508 1,604,346 1,583,857 
Short-term borrowings
65,052 64,899 63,018 79,485 94,591 
Long-term debt
150,177 115,907 72,550 18,514 18,983 
Total shareholders’ equity
235,119 220,678 203,967 204,085 202,419 
Equity to assets ratio
10.25 %10.11 %10.35 %10.59 %10.53 %
Loans to deposits ratio
94.41 %92.23 %90.11 %87.63 %87.72 %
Asset Quality
Net charge-offs
$45 $102 33 33 16 
Other real estate owned
— — — — — 
Non-accrual loans
$2,719 $80 85 451 701 
Loans past due 90 days or more and still accruing
524 72 176 256 — 
Total nonperforming loans
$3,243 152 261 707 701 
Net charge-offs to average loans
0.01 %0.02 %0.01 %0.01 %0.00 %
Allowance for credit losses on loans to total loans
0.64 %0.61 %0.54 %0.55 %0.56 %
Nonperforming loans to total loans
0.20 %0.01 %0.02 %0.05 %0.05 %
Nonperforming assets to total assets
0.14 %0.01 %0.01 %0.04 %0.04 %






Three Months Ended
03-31-202412-31-202309-30-202306-30-202303-31-2023
Assets Under Management
LCNB Corp. total assets
$2,283,151 2,291,592 1,981,668 1,950,763 1,924,531 
Trust and investments (fair value)
890,800 806,770 731,342 744,149 716,578 
Mortgage loans serviced
386,490 391,800 146,483 143,093 142,167 
Cash management
13,314 2,375 2,445 2,668 1,831 
Brokerage accounts (fair value)
411,211 392,390 368,854 384,889 374,066 
Total assets managed
$3,984,966 3,884,927 3,230,792 3,225,562 3,159,173 
Reconciliation of Net Income Less Tax-Effected Merger-Related Costs
Net income (loss)
$1,915 (293)4,070 4,694 4,157 
Merger expenses
775 3,914 302 415 25 
Provision for credit losses on non-PCD loans
— 1,722 — — — 
Tax effect(90)(1,102)(3)(63)(4)
Adjusted net income
$2,600 4,241 4,369 5,046 4,178 
Adjusted basic and diluted earnings per share$0.20 $0.34 0.40 0.45 0.37 
Adjusted return on average assets0.46 %0.77 %0.88 %1.05 %0.88 %
Adjusted return on average equity4.45 %7.62 %8.50 %9.92 %8.37 %








Three Months Ended March 31,Three Months Ended December 31,
202420232023
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)$1,722,568 22,682 5.30 %$1,389,385 16,143 4.71 %$1,622,911 21,113 5.16 %
Interest-bearing demand deposits23,317 324 5.59 %12,500 157 5.09 %18,936 280 5.87 %
Federal Reserve Bank stock5,509 (4)(0.29)%4,652 — — %4,930 144 11.59 %
Federal Home Loan Bank stock16,239 341 8.45 %6,796 62 3.70 %12,607 273 8.59 %
Investment securities:
Equity securities4,995 40 3.22 %4,337 37 3.46 %4,415 62 5.57 %
Debt securities, taxable265,164 1,232 1.87 %286,369 1,343 1.90 %265,736 1,273 1.90 %
Debt securities, non-taxable (2)18,864 181 3.86 %24,969 223 3.62 %22,586 209 3.67 %
Total earnings assets2,056,656 24,796 4.85 %1,729,008 17,965 4.21 %1,952,121 23,354 4.75 %
Non-earning assets248,633 200,256 239,182 
Allowance for credit losses(10,523)(7,522)(8,826)
Total assets$2,294,766 $1,921,742 $2,182,477 
Interest-bearing demand and money market deposits$643,199 3,917 2.45 %$505,382 1,245 1.00 %$574,349 2,710 1.87 %
Savings deposits368,049 206 0.23 %415,873 139 0.14 %402,791 323 0.32 %
IRA and time certificates370,130 4,067 4.42 %185,297 1,072 2.35 %302,434 3,321 4.36 %
Short-term borrowings65,052 935 5.78 %94,591 1,304 5.59 %64,899 918 5.61 %
Long-term debt150,177 1,738 4.65 %18,983 216 4.61 %115,907 1,379 4.72 %
Total interest-bearing liabilities1,596,607 10,863 2.74 %1,220,126 3,976 1.32 %1,460,380 8,651 2.35 %
Demand deposits443,168 477,305 480,103 
Other liabilities19,872 21,892 21,316 
Equity235,119 202,419 220,678 
Total liabilities and equity$2,294,766 $1,921,742 $2,182,477 
Net interest rate spread (3)2.11 %2.89 %2.40 %
Net interest income and net interest margin on a taxable-equivalent basis (4)13,933 2.72 %13,989 3.28 %14,703 2.99 %
Ratio of interest-earning assets to interest-bearing liabilities128.81 %141.71 %133.67 %
(1)Includes non-accrual loans and loans held for sale
(2) Income from tax-exempt securities is included in interest income on a taxable-equivalent basis.  Interest income has been divided by a factor comprised of the complement of the incremental tax rate of 21%.
(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)
March 31, 2024
(Unaudited)		December 31, 2023
ASSETS:
Cash and due from banks$24,950 36,535 
Interest-bearing demand deposits8,001 3,188 
Total cash and cash equivalents32,951 39,723 
Investment securities:
Equity securities with a readily determinable fair value, at fair value1,334 1,336 
Equity securities without a readily determinable fair value, at cost3,666 3,666 
Debt securities, available-for-sale, at fair value262,786 276,601 
Debt securities, held-to-maturity, at cost, net of allowance for credit losses of $5 and $5 at March 31, 2024 and December 31, 2023, respectively16,746 16,858 
Federal Reserve Bank stock, at cost5,774 5,086 
Federal Home Loan Bank stock, at cost16,469 15,176 
Loans, net of allowance for credit losses of $10,557 and 10,525 at March 31, 2024 and December 31, 2023, respectively1,645,797 1,712,946 
Loans held for sale75,581 — 
Premises and equipment, net36,690 36,302 
Operating lease right-of-use assets5,838 6,000 
Goodwill79,559 79,509 
Core deposit and other intangibles, net8,903 9,494 
Bank-owned life insurance50,165 49,847 
Interest receivable9,115 8,405 
Other assets, net31,777 30,643 
TOTAL ASSETS$2,283,151 2,291,592 
LIABILITIES:
Deposits:
Noninterest-bearing$435,580 462,267 
Interest-bearing1,422,913 1,362,122 
Total deposits1,858,493 1,824,389 
Short-term borrowings10,000 97,395 
Long-term debt162,638 113,123 
Operating lease liabilities6,123 6,261 
Accrued interest and other liabilities12,234 15,121 
TOTAL LIABILITIES2,049,488 2,056,289 
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 16,435,659 and 16,384,952 shares at March 31, 2024 and December 31, 2023, respectively; outstanding 13,224,276 and 13,173,569 shares at March 31, 2024 and December 31, 2023, respectively174,082 173,637 
Retained earnings139,050 140,017 
Treasury shares at cost, 3,211,383 and 3,211,383 shares at March 31, 2024 and December 31, 2023, respectively(56,015)(56,015)
Accumulated other comprehensive loss, net of taxes(23,454)(22,336)
TOTAL SHAREHOLDERS' EQUITY233,663 235,303 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$2,283,151 $2,291,592 






Exhibit 99.2
LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended
March 31,
20242023
INTEREST INCOME:
Interest and fees on loans$22,682 16,143 
Dividends on equity securities:
With a readily determinable fair value9 17 
Without a readily determinable fair value31 20 
Interest on debt securities:
Taxable1,232 1,343 
Non-taxable143 176 
Other investments661 219 
TOTAL INTEREST INCOME24,758 17,918 
INTEREST EXPENSE:
Interest on deposits8,190 2,456 
Interest on short-term borrowings935 1,304 
Interest on long-term debt1,738 216 
TOTAL INTEREST EXPENSE10,863 3,976 
NET INTEREST INCOME13,895 13,942 
PROVISION FOR (RECOVERY OF) CREDIT LOSSES125 (57)
NET INTEREST INCOME AFTER PROVISION FOR (RECOVERY OF) CREDIT LOSSES13,770 13,999 
NON-INTEREST INCOME:
Fiduciary income1,973 1,740 
Service charges and fees on deposit accounts1,384 1,482 
Net gains from sales of debt securities, available-for-sale(214)— 
Bank-owned life insurance income318 271 
Net gains from sales of loans522 6 
Other operating income(54)82 
TOTAL NON-INTEREST INCOME3,929 3,581 
NON-INTEREST EXPENSE:
Salaries and employee benefits8,554 7,349 
Equipment expenses390 361 
Occupancy expense, net1,005 963 
State financial institutions tax428 397 
Marketing174 192 
Amortization of intangibles236 111 
FDIC insurance premiums, net504 215 
Contracted services784 641 
Merger-related expenses775 25 
Other non-interest expense2,622 2,271 
TOTAL NON-INTEREST EXPENSE15,472 12,525 
INCOME BEFORE INCOME TAXES2,227 5,055 
PROVISION FOR INCOME TAXES312 898 
NET INCOME$1,915 4,157 
Earnings per common share:
Basic$0.15 0.37 
Diluted$0.15 0.37 
Weighted average common shares outstanding:
Basic13,112,302 11,189,170 
Diluted13,112,302 11,189,170