Press Release
October 16, 2012
LCNB CORP. REPORTS FINANCIAL RESULTS FOR
THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2012
LCNB Corp. (LCNB) today announced net income of $1,847,000 (total basic and diluted earnings per common share of $0.27) and $6,111,000 (total basic and diluted earnings per common share of $0.91 and $0.90, respectively) for the three and nine months ended September 30, 2012, respectively. This compares to net income from continuing operations of $1,867,000 (total basic and diluted earnings per common share of $0.28) and $5,368,000 (total basic and diluted earnings per common share of $0.80) for the same three and nine-month periods in 2011.
Net income for the nine months ended September 30, 2011 included income from discontinued operations of $793,000, which consisted of a gain recognized on the sale of LCNB’s insurance agency subsidiary, Dakin Insurance Agency, Inc., less certain related closing costs, taxes, and a curtailment expense recognized in LCNB’s nonqualified defined benefit retirement plan due to the sale.
Commenting on the financial results, LCNB CEO Steve Wilson said, “We are pleased to report strong earnings for the first nine months of 2012. Net income from continuing operations for the nine month period in 2012 is 13.8% greater than 2011. Total assets increased $25.6 million or 3.2% since the beginning of the year and deposits increased $37.5 million or 5.7%. Our return on average assets for the first nine months of 2012 was 1.01% and our return on average equity was 10.17%.”
The provision for loan losses for the three and nine months ended September 30, 2012 was $436,000 and $742,000, respectively, down from $588,000 and $1,476,000 for the same periods in 2011. Credit quality continued to stabilize during 2012, resulting in a decline in the provision. Net loan charge-offs for the first nine months of 2012 and 2011 totaled $807,000 and $876,000, respectively. Non-accrual loans and loans past due 90 days or more and still accruing interest totaled $2,799,000 or 0.61% of total loans at September 30, 2012, compared to $3,707,000 or 0.80% of total loans at December 31, 2011. The decrease was primarily due to the transfer of a non-accrual commercial real estate loan to other real estate owned during the first quarter 2012 and to partial charge-offs recognized on various loans. Other real estate owned (which includes property acquired through foreclosure or deed-in-lieu of foreclosure and also includes property deemed to be in-substance foreclosed) and other repossessed assets increased from $1,642,000 at December 31, 2011 to $2,314,000 at September 30, 2012.
Net interest income for the three months and nine months ended September 30, 2012 decreased $225,000 and $307,000, respectively, from the comparative periods in 2011. The decreases for both periods were primarily due to decreases in the net interest margin, partially offset by increases in average interest-earning assets.
Non-interest income for the three and nine-month periods in 2012 was $172,000 and $513,000 greater than the comparative periods in 2011 primarily due to increases in gains from sales of investment securities and mortgage loans. One-time fees recognized by the trust department during the first quarter 2012 also contributed to the nine-month comparable period increase. These increases were partially offset by a decrease in service charges and fees on deposit accounts.
Non-interest expense for the three months ended September 30, 2012 was $128,000 greater than the comparative period in 2011 due to increases in various accounts. Non-interest expense for the nine months ended September 30, 2012 was $186,000 less than the comparative period in 2011 primarily due to decreases in FDIC insurance premiums and other expenses, partially offset by increases in a number of other accounts. The
decrease in other expenses in 2012 reflects the absences of losses recognized during 2011 on a standby letter of credit and certain environmental remediation costs.
LCNB Corp. is a financial holding company headquartered in Lebanon, Ohio. LCNB Corp.’s only business is ownership of LCNB National Bank, which has 25 offices located in Warren, Butler, Montgomery, Clinton, Clermont, and Hamilton Counties, Ohio. Additional information about LCNB Corp. and information about products and services offered by LCNB National Bank can be found on the internet atwww.lcnb.com.
Certain matters disclosed herein may be deemed to be forward-looking statements that involve risks and uncertainties, including regulatory policy changes, interest rate fluctuations, loan demand, loan delinquencies and losses, and other risks. Actual strategies and results in future time periods may differ materially from those currently expected. Such forward-looking statements represent management’s judgment as of the current date. LCNB disclaims any intent or obligation to update such forward-looking statements. LCNB intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
