EX-99.2 3 lcnbform8-k3312023xex992.htm EX-99.2

Exhibit 99.2

LCNB Corp. and Subsidiaries

Financial Highlights

(Dollars in thousands, except per share amounts)

(Unaudited)

			Three Months Ended
			3/31/2023						12/31/2022						9/30/2022						6/30/2022						3/31/2022
Condensed Income Statement
Interest income			$	17,918					17,719						16,704						16,208						15,122
Interest expense			3,976						1,511						1,260						1,041						899
Net interest income			13,942						16,208						15,444						15,167						14,223
Provision for (recovery of) credit losses			(57)						(19)						(157)						377						49
Net interest income after provision for (recovery of) credit losses			13,999						16,227						15,601						14,790						14,174
Non-interest income			3,581						3,629						3,581						3,528						3,550
Non-interest expense			12,525						12,065						12,350						11,469						12,250
Income before income taxes			5,055						7,791						6,832						6,849						5,474
Provision for income taxes			898						1,383						1,253						1,231						951
Net income			$	4,157					6,408						5,579						5,618						4,523
Supplemental Income Statement Information
Amort/Accret income on acquired loans			$	74					249						144						61						66
Tax-equivalent net interest income			$	13,989					16,257						15,495						15,217						14,273
Per Share Data
Dividends per share			$	0.21					0.21						0.20						0.20						0.20
Basic earnings per common share			$	0.37					0.57						0.49						0.49						0.38
Diluted earnings per common share			$	0.37					0.57						0.49						0.49						0.38
Book value per share			$	18.22					17.82						17.31						17.84						18.14
Tangible book value per share			$	12.86					12.48						11.97						12.53						12.84
Weighted average common shares outstanding:
Basic			11,189,170						11,211,328						11,284,225						11,337,805						11,818,614
Diluted			11,189,170						11,211,328						11,284,225						11,337,805						11,818,614
Shares outstanding at period end			11,202,063						11,259,080						11,293,639						11,374,515						11,401,503
Selected Financial Ratios
Return on average assets			0.88		%				1.34		%				1.15		%				1.18		%				0.96		%
Return on average equity			8.33		%				12.90		%				10.80		%				10.96		%				8.13		%
Return on average tangible common equity			11.85		%				18.59		%				15.30		%				15.52		%				11.11		%
Dividend payout ratio			56.76		%				36.84		%				40.82		%				40.82		%				52.63		%
Net interest margin (tax equivalent)			3.28		%				3.77		%				3.54		%				3.54		%				3.35		%
Efficiency ratio (tax equivalent)			71.29		%				60.67		%				64.74		%				61.18		%				68.73		%
Selected Balance Sheet Items
Cash and cash equivalents			$	31,876					22,701						29,460						31,815						19,941
Debt and equity securities			328,194						323,167						325,801						337,952						330,715
Loans:
Commercial and industrial			$	124,240					120,236						114,694						114,971						105,805
Commercial, secured by real estate			932,208						938,022						908,130						905,703						906,140
Residential real estate			303,051						305,575						316,669						315,930						328,034
Consumer			28,611						28,290						29,451						30,308						32,445
Agricultural			7,523						10,054						8,630						7,412						7,980
Other, including deposit overdrafts			62						81						52						81						45
Deferred net origination fees			(865)						(980)						(937)						(928)						(928)
Loans, gross			1,394,830						1,401,278						1,376,689						1,373,477						1,379,521
Less allowance for credit losses on loans			7,858						5,646						5,644						5,833						5,530
Loans, net			$	1,386,972					1,395,632						1,371,045						1,367,644						1,373,991

---

			Three Months Ended
			3/31/2023						12/31/2022						9/30/2022						6/30/2022						3/31/2022
Selected Balance Sheet Items, continued
Allowance for Credit Losses on Loans:
Allowance for credit losses, beginning of period			5,646						5,644						5,833						5,530						5,506
Cumulative change in accounting principle; adoption of ASU 2016-13			2,196						—						—						—						—
Provision for (recovery of) credit losses			32						(19)						(157)						377						49
Losses charged off			(36)						(60)						(53)						(116)						(37)
Recoveries			20						81						21						42						12
Allowance for credit losses, end of period			7,858						5,646						5,644						5,833						5,530
Total earning assets			$	1,736,829					1,726,902						1,714,196						1,722,853						1,712,115
Total assets			1,924,531						1,919,121						1,904,700						1,912,627						1,899,630
Total deposits			1,603,881						1,604,970						1,657,370						1,658,825						1,636,606
Short-term borrowings			76,500						71,455						4,000						5,000						24,746
Long-term debt			18,598						19,072						24,539						25,000						10,000
Total shareholders’ equity			204,072						200,675						195,439						202,960						206,875
Equity to assets ratio			10.60		%				10.46		%				10.26		%				10.61		%				10.89		%
Loans to deposits ratio			86.97		%				87.31		%				83.06		%				82.80		%				84.29		%
Tangible common equity (TCE)			$	144,006					140,498						135,149						142,557						146,360
Tangible common assets (TCA)			1,864,465						1,858,944						1,844,410						1,852,224						1,839,115
TCE/TCA			7.72		%				7.56		%				7.33		%				7.70		%				7.96		%
Selected Average Balance Sheet Items
Cash and cash equivalents			$	35,712					24,330						35,763						28,787						32,826
Debt and equity securities			327,123						323,195						338,299						338,149						340,666
Loans			$	1,389,385					1,383,809						1,384,520						1,375,710						1,376,926
Less allowance for credit losses on loans			7,522						5,647						5,830						5,532						5,503
Net loans			$	1,381,863					1,378,162						1,378,690						1,370,178						1,371,423
Total earning assets			$	1,729,008					1,711,524						1,736,031						1,722,503						1,727,335
Total assets			1,921,742						1,903,338						1,928,868						1,912,574						1,917,226
Total deposits			1,583,857						1,637,201						1,669,932						1,655,389						1,646,627
Short-term borrowings			94,591						21,433						5,728						18,263						12,503
Long-term debt			18,983						23,855						24,920						12,637						10,000
Total shareholders’ equity			202,419						197,014						205,051						205,645						225,725
Equity to assets ratio			10.53		%				10.35		%				10.63		%				10.75		%				11.77		%
Loans to deposits ratio			87.72		%				84.52		%				82.91		%				83.10		%				83.62		%
Asset Quality
Net charge-offs (recoveries)			$	16					(21)						32						74						25
Non-accrual loans			$	701					391						465						599						1,455
Loans past due 90 days or more and still accruing			—						39						—						—						—
Total nonperforming loans			$	701					430						465						599						1,455
Net charge-offs (recoveries) to average loans			0.00		%				(0.01)		%				0.01		%				0.02		%				0.01		%
Allowance for credit losses on loans to total loans			0.56		%				0.40		%				0.41		%				0.42		%				0.40		%
Nonperforming loans to total loans			0.05		%				0.03		%				0.03		%				0.04		%				0.11		%
Nonperforming assets to total assets			0.04		%				0.02		%				0.02		%				0.03		%				0.08		%
Assets Under Management
LCNB Corp. total assets			$	1,924,531					1,919,121						1,904,700						1,912,627						1,899,630
Trust and investments (fair value)			716,578						678,366						611,409						625,984						700,353
Mortgage loans serviced			142,167						148,412						145,317						153,557						152,271
Cash management			1,831						1,925						53,199						38,914						75,302
Brokerage accounts (fair value)			374,066						347,737						314,144						303,663						326,290
Total assets managed			$	3,159,173					3,095,561						3,028,769						3,034,745						3,153,846

---

LCNB CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

(Dollars in thousands)

			March 31, 2023 (Unaudited)						December 31, 2022
ASSETS:
Cash and due from banks			$	18,071					20,244
Interest-bearing demand deposits			13,805						2,457
Total cash and cash equivalents			31,876						22,701
Investment securities:
Equity securities with a readily determinable fair value, at fair value			1,286						2,273
Equity securities without a readily determinable fair value, at cost			2,099						2,099
Debt securities, available-for-sale, at fair value			293,427						289,850
Debt securities, held-to-maturity, at cost, net of allowance for credit losses			19,763						19,878
Federal Reserve Bank stock, at cost			4,652						4,652
Federal Home Loan Bank stock, at cost			6,967						4,415
Loans, net of allowance for credit losses			1,386,972						1,395,632
Premises and equipment, net			33,186						33,042
Operating leases right of use asset			6,093						6,248
Goodwill			59,221						59,221
Core deposit and other intangibles			1,665						1,827
Bank owned life insurance			44,569						44,298
Interest receivable			8,005						7,482
Other assets			24,750						25,503
TOTAL ASSETS			$	1,924,531					1,919,121
LIABILITIES:
Deposits:
Noninterest-bearing			$	473,345					505,824
Interest-bearing			1,130,536						1,099,146
Total deposits			1,603,881						1,604,970
Short-term borrowings			76,500						71,455
Long-term debt			18,598						19,072
Operating lease liabilities			6,246						6,370
Allowance for credit losses on off-balance sheet credit exposures			482						—
Accrued interest and other liabilities			14,752						16,579
TOTAL LIABILITIES			1,720,459						1,718,446
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 14,320,561 and 14,270,550 shares at March 31, 2023 and December 31, 2022, respectively; outstanding 11,202,063 and 11,259,080 shares at March 31, 2023 and December 31, 2022, respectively			144,488						144,069
Retained earnings			139,115						139,249
Treasury shares at cost, 3,118,498 and 3,011,470 shares at March 31, 2023 and December 31, 2022, respectively			(54,527)						(52,689)
Accumulated other comprehensive loss, net of taxes			(25,004)						(29,954)
TOTAL SHAREHOLDERS' EQUITY			204,072						200,675
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY			$	1,924,531					1,919,121

---

LCNB CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)

									Three Months Ended  March 31,
															2023						2022
INTEREST INCOME:
Interest and fees on loans															16,143						13,786
Dividends on equity securities with a readily determinable fair value															17						12
Dividends on equity securities without a readily determinable fair value															20						5
Interest on debt securities, taxable															1,343						1,095
Interest on debt securities, non-taxable															176						189
Other investments															219						35
TOTAL INTEREST INCOME															17,918						15,122
INTEREST EXPENSE:
Interest on deposits															2,456						739
Interest on short-term borrowings															1,304						86
Interest on long-term debt															216						74
TOTAL INTEREST EXPENSE															3,976						899
NET INTEREST INCOME															13,942						14,223
Provision for credit losses on loans															32						49
Provision for credit losses on debt securities, held-to-maturity															—						—
Recovery of credit losses on off-balance sheet credit exposures															(89)						—
TOTAL PROVISION FOR (RECOVERY OF) CREDIT LOSSES															(57)						49
NET INTEREST INCOME AFTER PROVISION FOR (RECOVERY OF) CREDIT LOSSES															13,999						14,174
NON-INTEREST INCOME:
Fiduciary income															1,740						1,695
Service charges and fees on deposit accounts															1,482						1,406
Bank owned life insurance income															271						265
Gains from sales of loans															6						124
Other operating income															82						60
TOTAL NON-INTEREST INCOME															3,581						3,550
NON-INTEREST EXPENSE:
Salaries and employee benefits															7,349						7,215
Equipment expenses															361						408
Occupancy expense, net															963						775
State financial institutions tax															397						436
Marketing															192						262
Amortization of intangibles															111						140
FDIC insurance premiums, net															215						126
Contracted services															641						610
Other non-interest expense															2,296						2,278
TOTAL NON-INTEREST EXPENSE															12,525						12,250
INCOME BEFORE INCOME TAXES															5,055						5,474
PROVISION FOR INCOME TAXES															898						951
NET INCOME															4,157						4,523
Dividends declared per common share															0.21						0.20

---

Earnings per common share:
Basic															0.37						0.38
Diluted															0.37						0.38
Weighted average common shares outstanding:
Basic															11,189,170						11,818,614
Diluted															11,189,170						11,818,614