EX-99.2 3 lcnbform8-k12312022xex992.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
Twelve Months Ended
12/31/2022
9/30/2022
6/30/2022
3/31/2022
12/31/2021
12/31/2022
12/31/2021
Condensed Income Statement
Interest income
$17,719 16,704 16,208 15,122 15,189 65,753 61,177 
Interest expense
1,511 1,260 1,041 899 879 4,711 4,053 
Net interest income
16,208 15,444 15,167 14,223 14,310 61,042 57,124 
Provision for (recovery of) loan losses
(19)(157)377 49 (508)250 (269)
Net interest income after provision for (recovery of) loan losses
16,227 15,601 14,790 14,174 14,818 60,792 57,393 
Non-interest income
3,629 3,581 3,528 3,550 4,347 14,288 16,232 
Non-interest expense
12,065 12,350 11,469 12,250 12,311 48,134 48,040 
Income before income taxes
7,791 6,832 6,849 5,474 6,854 26,946 25,585 
Provision for income taxes
1,383 1,253 1,231 951 1,227 4,818 4,611 
Net income
$6,408 5,579 5,618 4,523 5,627 22,128 20,974 
Supplemental Income Statement Information
Amort/Accret income on acquired loans
$249 144 61 66 116 520 713 
Tax-equivalent net interest income
$16,257 15,495 15,217 14,273 14,365 61,242 57,354 
Per Share Data
Dividends per share
$0.21 0.20 0.20 0.20 0.20 0.81 0.77 
Basic earnings per common share
$0.57 0.49 0.49 0.38 0.45 1.93 1.66 
Diluted earnings per common share
$0.57 0.49 0.49 0.38 0.45 1.93 1.66 
Book value per share
$17.82 17.31 17.84 18.14 19.22 17.82 19.22 
Tangible book value per share
$12.48 11.97 12.53 12.84 14.33 12.48 14.33 
Weighted average common shares outstanding:
Basic
11,211,328 11,284,225 11,337,805 11,818,614 12,370,702 11,410,981 12,589,605 
Diluted
11,211,328 11,284,225 11,337,805 11,818,614 12,370,702 11,410,981 12,589,613 
Shares outstanding at period end
11,259,080 11,293,639 11,374,515 11,401,503 12,414,956 11,259,080 12,414,956 
Selected Financial Ratios
Return on average assets
1.34 %1.15 %1.18 %0.96 %1.18 %1.16 %1.13 %
Return on average equity
12.90 %10.80 %10.96 %8.13 %9.33 %10.62 %8.71 %
Return on average tangible common equity18.59 %15.30 %15.52 %11.11 %12.51 %14.96 %11.67 %
Dividend payout ratio
36.84 %40.82 %40.82 %52.63 %44.44 %41.97 %46.39 %
Net interest margin (tax equivalent)
3.77 %3.54 %3.54 %3.35 %3.34 %3.55 %3.45 %
Efficiency ratio (tax equivalent)
60.67 %64.74 %61.18 %68.73 %65.79 %63.73 %65.28 %
Selected Balance Sheet Items
Cash and cash equivalents
$22,701 29,460 31,815 19,941 18,136 
Debt and equity securities
323,167 325,801 337,952 330,715 345,649 
Loans:
Commercial and industrial
$120,236 114,694 114,971 105,805 101,792 
Commercial, secured by real estate
938,022 908,130 905,703 906,140 889,108 
Residential real estate
305,575 316,669 315,930 328,034 334,547 
Consumer
28,290 29,451 30,308 32,445 34,190 
  Agricultural
10,054 8,630 7,412 7,980 10,647 
Other, including deposit overdrafts
81 52 81 45 122 
Deferred net origination fees
(980)(937)(928)(928)(961)
  Loans, gross
1,401,278 1,376,689 1,373,477 1,379,521 1,369,445 
Less allowance for loan losses
5,646 5,644 5,833 5,530 5,506 
  Loans, net
$1,395,632 1,371,045 1,367,644 1,373,991 1,363,939 


Three Months Ended
Twelve Months Ended
12/31/20229/30/20226/30/20223/31/202212/31/202112/31/202212/31/2021
Selected Balance Sheet Items, continued
Total earning assets
$1,726,902 1,714,196 1,722,853 1,712,115 1,716,420 
Total assets
1,919,121 1,904,700 1,912,627 1,899,630 1,903,629 
Total deposits
1,604,970 1,657,370 1,658,825 1,636,606 1,628,819 
Short-term borrowings
71,455 4,000 5,000 24,746 — 
Long-term debt
19,072 24,539 25,000 10,000 10,000 
Total shareholders’ equity
200,675 195,439 202,960 206,875 238,604 
Equity to assets ratio
10.46 %10.26 %10.61 %10.89 %12.53 %
Loans to deposits ratio
87.31 %83.06 %82.80 %84.29 %84.08 %
Tangible common equity (TCE)
$140,498 135,149 142,557 146,360 177,949 
Tangible common assets (TCA)
1,858,944 1,844,410 1,852,224 1,839,115 1,842,974 
TCE/TCA
7.56 %7.33 %7.70 %7.96 %9.66 %
Selected Average Balance Sheet Items
Cash and cash equivalents
$24,330 35,763 28,787 32,826 29,614 30,364 36,648 
Debt and equity securities
323,195 338,299 338,149 340,666 348,150 335,051 319,619 
Loans
$1,383,809 1,384,520 1,375,710 1,376,926 1,351,762 1,380,272 1,329,072 
Less allowance for loan losses
5,647 5,830 5,532 5,503 5,843 5,629 5,701 
Net loans
$1,378,162 1,378,690 1,370,178 1,371,423 1,345,919 1,374,643 1,323,371 
Total earning assets
$1,711,524 1,736,031 1,722,503 1,727,335 1,708,392 1,724,350 1,663,567 
Total assets
1,903,338 1,928,868 1,912,574 1,917,226 1,896,530 1,915,431 1,851,177 
Total deposits
1,637,201 1,669,932 1,655,389 1,646,627 1,615,020 1,652,309 1,567,680 
Short-term borrowings
21,433 5,728 18,263 12,503 893 14,482 821 
Long-term debt
23,855 24,920 12,637 10,000 14,402 17,910 16,148 
Total shareholders’ equity
197,014 205,051 205,645 225,725 239,174 208,271 240,823 
Equity to assets ratio
10.35 %10.63 %10.75 %11.77 %12.61 %10.87 %13.01 %
Loans to deposits ratio
84.52 %82.91 %83.10 %83.62 %83.70 %83.54 %84.78 %
Asset Quality
Net charge-offs (recoveries)
$(21)32 74 25 (186)110 (47)
Non-accrual loans
$391 465 599 1,455 1,481 391 1,481 
Loans past due 90 days or more and still accruing
39 — — — 56 39 56 
Total nonperforming loans
$430 465 599 1,455 1,537 430 1,537 
Net charge-offs (recoveries) to average loans
(0.01)%0.01 %0.02 %0.01 %(0.05)%0.01 %0.00 %
Allowance for loan losses to total loans
0.40 %0.41 %0.42 %0.40 %0.40 %0.40 %0.40 %
Nonperforming loans to total loans
0.03 %0.03 %0.04 %0.11 %0.11 %0.03 %0.11 %
Nonperforming assets to total assets
0.02 %0.02 %0.03 %0.08 %0.08 %0.02 %0.08 %
Assets Under Management
LCNB Corp. total assets
$1,919,121 1,904,700 1,912,627 1,899,630 1,903,629 
Trust and investments (fair value)
678,366 611,409 625,984 700,353 722,093 
Mortgage loans serviced
148,412 145,317 153,557 152,271 149,382 
Cash management
1,925 53,199 38,914 75,302 34,009 
Brokerage accounts (fair value)
347,737 314,144 303,663 326,290 334,670 
Total assets managed
$3,095,561 3,028,769 3,034,745 3,153,846 3,143,783 


LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS

(Dollars in thousands)
December 31, 2022 (Unaudited)
December 31, 2021
ASSETS:
Cash and due from banks$20,244 16,810 
Interest-bearing demand deposits2,457 1,326 
Total cash and cash equivalents22,701 18,136 
Investment securities:
Equity securities with a readily determinable fair value, at fair value2,273 2,546 
Equity securities without a readily determinable fair value, at cost2,099 2,099 
Debt securities, available-for-sale, at fair value289,850 308,177 
Debt securities, held-to-maturity, at cost19,878 22,972 
Federal Reserve Bank stock, at cost4,652 4,652 
Federal Home Loan Bank stock, at cost4,415 5,203 
Loans, net1,395,632 1,363,939 
Premises and equipment, net33,042 35,385 
Operating leases right of use asset6,248 6,357 
Goodwill59,221 59,221 
Core deposit and other intangibles1,827 2,473 
Bank owned life insurance44,298 43,224 
Interest receivable7,482 7,999 
Other assets25,503 21,246 
TOTAL ASSETS$1,919,121 1,903,629 
LIABILITIES:  
Deposits:  
Noninterest-bearing$505,824 501,531 
Interest-bearing1,099,146 1,127,288 
Total deposits1,604,970 1,628,819 
Short-term borrowings71,455 — 
Long-term debt19,072 10,000 
Operating lease liabilities6,370 6,473 
Accrued interest and other liabilities16,579 19,733 
TOTAL LIABILITIES1,718,446 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 14,270,550 and 14,213,792 shares at December 31, 2022 and 2021, respectively; outstanding 11,259,080 and 12,414,956 shares at December 31, 2022 and 2021, respectively
144,069 143,130 
Retained earnings139,249 126,312 
Treasury shares at cost, 3,011,470 and 1,798,836 shares at December 31, 2022 and 2021, respectively
(52,689)(29,029)
Accumulated other comprehensive loss, net of taxes(29,954)(1,809)
TOTAL SHAREHOLDERS' EQUITY200,675 238,604 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$1,919,121 1,903,629 


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,
 2022202120222021
INTEREST INCOME:
Interest and fees on loans$15,887 13,770 59,247 56,142 
Dividends on equity securities with a readily determinable fair value16 13 56 51 
Dividends on equity securities without a readily determinable fair value13 5 29 21 
Interest on debt securities, taxable1,355 1,018 5,027 3,668 
Interest on debt securities, non-taxable186 208 753 864 
Other investments262 175 641 431 
TOTAL INTEREST INCOME17,719 15,189 65,753 61,177 
INTEREST EXPENSE:    
Interest on deposits1,189 769 3,682 3,578 
Interest on short-term borrowings96 2 416 6 
Interest on long-term debt226 108 613 469 
TOTAL INTEREST EXPENSE1,511 879 4,711 4,053 
NET INTEREST INCOME16,208 14,310 61,042 57,124 
PROVISION FOR (RECOVERY OF) LOAN LOSSES(19)(508)250 (269)
NET INTEREST INCOME AFTER PROVISION FOR (RECOVERY OF) LOAN LOSSES16,227 14,818 60,792 57,393 
NON-INTEREST INCOME:    
Fiduciary income1,617 1,715 6,468 6,674 
Service charges and fees on deposit accounts1,532 1,530 6,190 6,036 
Net gains on sales of debt securities, available-for-sale— 303 — 303 
Bank owned life insurance income271 269 1,074 1,074 
Gains from sales of loans8 292 196 852 
Other operating income201 238 360 1,293 
TOTAL NON-INTEREST INCOME3,629 4,347 14,288 16,232 
NON-INTEREST EXPENSE:    
Salaries and employee benefits7,192 6,976 28,483 27,616 
Equipment expenses395 446 1,629 1,678 
Occupancy expense, net767 713 3,067 2,949 
State financial institutions tax428 440 1,740 1,758 
Marketing339 361 1,184 1,239 
Amortization of intangibles113 263 478 1,043 
FDIC insurance premiums, net133 127 530 492 
ATM Expense340 436 1,370 1,416 
Computer maintenance and supplies283 332 1,114 1,213 
Telephone expense63 64 240 420 
Contracted services601 612 2,503 2,430 
Other real estate owned, net8 — (866)2 
Other non-interest expense1,403 1,541 6,662 5,784 
TOTAL NON-INTEREST EXPENSE12,065 12,311 48,134 48,040 
INCOME BEFORE INCOME TAXES7,791 6,854 26,946 25,585 
PROVISION FOR INCOME TAXES1,383 1,227 4,818 4,611 
NET INCOME$6,408 5,627 22,128 20,974 
Dividends declared per common share$0.21 0.20 0.81 0.77 
Earnings per common share:
Basic0.57 0.45 1.93 1.66 
Diluted0.57 0.45 1.93 1.66 
Weighted average common shares outstanding:
Basic11,211,328 12,370,702 11,410,981 12,589,605 
Diluted11,211,328 12,370,702 11,410,981 12,589,613