Exhibit 99.2
LCNB Corp. and Subsidiaries
Financial Highlights
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended | |||||||||||||||||
3/31/2015 | 12/31/2014 | 9/30/2014 | 6/30/2014 | 3/31/2014 | |||||||||||||
Condensed Income Statement | |||||||||||||||||
Interest income | $ | 10,090 | $ | 10,367 | 9,906 | 9,926 | 9,278 | ||||||||||
Interest expense | 762 | 844 | 911 | 920 | 915 | ||||||||||||
Net interest income | 9,328 | 9,523 | 8,995 | 9,006 | 8,363 | ||||||||||||
Provision for loan losses | 69 | 193 | 401 | 255 | 81 | ||||||||||||
Net interest income after provision | 9,259 | 9,330 | 8,594 | 8,751 | 8,282 | ||||||||||||
Non-interest income | 2,306 | 2,449 | 2,315 | 2,301 | 2,077 | ||||||||||||
Non-interest expense | 7,649 | 7,334 | 7,238 | 7,600 | 8,672 | ||||||||||||
Income before income taxes | 3,916 | 4,445 | 3,671 | 3,452 | 1,687 | ||||||||||||
Provision for income taxes | 1,082 | 1,228 | 953 | 841 | 364 | ||||||||||||
Net income | $ | 2,834 | 3,217 | 2,718 | 2,611 | 1,323 | |||||||||||
Per Share Data | |||||||||||||||||
Dividends per share | $ | 0.16 | 0.16 | 0.16 | 0.16 | 0.16 | |||||||||||
Basic earnings per share | $ | 0.30 | 0.34 | 0.30 | 0.28 | 0.14 | |||||||||||
Diluted earnings per share | $ | 0.30 | 0.34 | 0.29 | 0.28 | 0.14 | |||||||||||
Book value per share | $ | 13.80 | 13.50 | 13.24 | 13.18 | 12.89 | |||||||||||
Tangible book value per share | $ | 10.40 | 10.08 | 9.80 | 9.71 | 9.44 | |||||||||||
Average basic shares outstanding | 9,312,636 | 9,306,382 | 9,299,691 | 9,293,382 | 9,288,400 | ||||||||||||
Average diluted shares outstanding | 9,410,774 | 9,403,013 | 9,405,013 | 9,402,343 | 9,413,049 | ||||||||||||
Shares outstanding at period end | 9,317,583 | 9,311,318 | 9,305,208 | 9,298,270 | 9,292,226 | ||||||||||||
Selected Financial Ratios | |||||||||||||||||
Return on average assets | 1.02 | % | 1.14 | % | 0.95 | % | 0.91 | % | 0.50 | % | |||||||
Return on average equity | 9.01 | % | 10.18 | % | 8.71 | % | 8.60 | % | 4.47 | % | |||||||
Dividend payout ratio | 53.33 | % | 47.06 | % | 53.33 | % | 57.14 | % | 114.29 | % | |||||||
Net interest margin (tax equivalent) | 3.83 | % | 3.82 | % | 3.57 | % | 3.59 | % | 3.66 | % | |||||||
Efficiency ratio (tax equivalent) | 63.90 | % | 59.48 | % | 61.97 | % | 65.26 | % | 80.50 | % | |||||||
Selected Balance Sheet Items | |||||||||||||||||
Investment securities and stock | $ | 329,429 | 314,074 | 322,341 | 357,567 | 331,771 | |||||||||||
Loans | $ | 701,685 | 698,956 | 685,915 | 691,719 | 685,196 | |||||||||||
Less allowance for loan losses | 2,837 | 3,121 | 3,298 | 3,394 | 3,370 | ||||||||||||
Net loans | $ | 698,848 | 695,835 | 682,617 | 688,325 | 681,826 | |||||||||||
Total assets | $ | 1,129,497 | 1,108,066 | 1,123,356 | 1,151,109 | 1,133,508 | |||||||||||
Total deposits | 973,725 | 946,205 | 956,633 | 986,824 | 984,514 | ||||||||||||
Short-term borrowings | 13,454 | 16,645 | 24,954 | 23,523 | 11,215 | ||||||||||||
Long-term debt | 6,153 | 11,357 | 11,432 | 11,506 | 11,580 | ||||||||||||
Total shareholders’ equity | 128,576 | 125,695 | 123,179 | 122,584 | 119,761 | ||||||||||||
Tangible common equity (TCE) | $ | 96,340 | 93,277 | 90,579 | 89,800 | 87,017 | |||||||||||
Tangible common assets (TCA) | 1,097,261 | 1,075,648 | 1,090,756 | 1,118,325 | 1,100,764 | ||||||||||||
TCE/TA | 8.78 | % | 8.67 | % | 8.30 | % | 8.03 | % | 7.91 | % | |||||||
Loans to deposit ratio | 72.06 | % | 73.87 | % | 71.70 | % | 70.10 | % | 69.60 | % | |||||||
Equity to assets ratio | 11.38 | % | 11.34 | % | 10.97 | % | 10.65 | % | 10.57 | % | |||||||
Three Months Ended | |||||||||||||||||
3/31/2015 | 12/31/2014 | 9/30/2014 | 6/30/2014 | 3/31/2014 | |||||||||||||
Selected Average Balance Sheet Items | |||||||||||||||||
Investment securities and stock | $ | 313,279 | 311,395 | 348,469 | 347,837 | 302,791 | |||||||||||
Loans | $ | 699,959 | 694,185 | 688,972 | 685,581 | 647,535 | |||||||||||
Less allowance for loan losses | 2,870 | 3,075 | 3,288 | 3,367 | 3,372 | ||||||||||||
Net loans | $ | 697,089 | 691,110 | 685,684 | 682,214 | 644,163 | |||||||||||
Total assets | $ | 1,125,326 | 1,123,949 | 1,140,922 | 1,145,300 | 1,071,198 | |||||||||||
Total deposits | 969,658 | 967,505 | 976,109 | 991,809 | 922,051 | ||||||||||||
Short-term borrowings | 13,824 | 12,217 | 22,547 | 13,601 | 10,814 | ||||||||||||
Long-term debt | 6,598 | 11,382 | 11,457 | 11,531 | 11,821 | ||||||||||||
Total shareholders’ equity | 127,608 | 125,302 | 123,807 | 121,725 | 119,959 | ||||||||||||
Asset Quality | |||||||||||||||||
Net charge-offs | $ | 352 | 370 | 496 | 232 | 300 | |||||||||||
Other real estate owned | 1,364 | 1,370 | 1,460 | 1,906 | 1,799 | ||||||||||||
Non-accrual loans | 3,972 | 5,599 | 6,264 | 6,243 | 5,374 | ||||||||||||
Loans past due 90 days or more and still accruing | 355 | 203 | 111 | 130 | 825 | ||||||||||||
Total nonperforming loans | $ | 4,327 | 5,802 | 6,375 | 6,373 | 6,199 | |||||||||||
Net charge-offs to average loans | 0.20 | % | 0.21 | % | 0.29 | % | 0.14 | % | 0.19 | % | |||||||
Allowance for loan losses to total loans | 0.40 | % | 0.45 | % | 0.48 | % | 0.49 | % | 0.49 | % | |||||||
Nonperforming loans to total loans | 0.62 | % | 0.83 | % | 0.93 | % | 0.92 | % | 0.90 | % | |||||||
Nonperforming assets to total assets | 0.50 | % | 0.65 | % | 0.70 | % | 0.72 | % | 0.71 | % | |||||||
Assets Under Management | |||||||||||||||||
LCNB Corp. total assets | $ | 1,129,497 | 1,108,066 | 1,123,356 | 1,151,109 | 1,133,508 | |||||||||||
Trust and investments (fair value) | 264,122 | 258,266 | 255,409 | 267,857 | 262,666 | ||||||||||||
Mortgage loans serviced | 116,534 | 120,433 | 123,792 | 128,855 | 133,504 | ||||||||||||
Business cash management | 5,839 | 5,811 | 5,846 | 6,307 | 5,871 | ||||||||||||
Brokerage accounts (fair value) | 141,439 | 132,823 | 127,303 | 126,069 | 120,768 | ||||||||||||
Total assets managed | $ | 1,657,431 | 1,625,399 | 1,635,706 | 1,680,197 | 1,656,317 | |||||||||||
Non-GAAP Financial Measures | |||||||||||||||||
Net income | $ | 2,834 | 3,217 | 2,718 | 2,611 | 1,323 | |||||||||||
Less (add) net gain (loss) on sales of securities, net of tax | 73 | 37 | 64 | 0 | (3 | ) | |||||||||||
Add merger-related expenses, net of tax | 50 | 26 | 3 | 46 | 853 | ||||||||||||
Core net income | $ | 2,811 | 3,206 | 2,657 | 2,657 | 2,179 | |||||||||||
Basic core earnings per share | $ | 0.30 | 0.34 | 0.29 | 0.29 | 0.23 | |||||||||||
Diluted core earnings per share | $ | 0.30 | 0.34 | 0.28 | 0.28 | 0.23 | |||||||||||
Adjusted return on average assets | 1.01 | % | 1.13 | % | 0.92 | % | 0.93 | % | 0.82 | % | |||||||
Adjusted return on average equity | 8.86 | % | 10.06 | % | 8.44 | % | 8.67 | % | 7.32 | % | |||||||
Core efficiency ratio (tax equivalent) | 63.91 | % | 59.48 | % | 62.46 | % | 64.66 | % | 68.48 | % | |||||||
LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
March 31, 2015 (Unaudited) | December 31, 2014 | ||||||
ASSETS: | |||||||
Cash and due from banks | $ | 12,760 | 14,235 | ||||
Interest-bearing demand deposits | 4,879 | 1,610 | |||||
Total cash and cash equivalents | 17,639 | 15,845 | |||||
Investment securities: | |||||||
Available-for-sale, at fair value | 300,527 | 285,365 | |||||
Held-to-maturity, at cost | 22,918 | 22,725 | |||||
Federal Reserve Bank stock, at cost | 2,346 | 2,346 | |||||
Federal Home Loan Bank stock, at cost | 3,638 | 3,638 | |||||
Loans, net | 698,848 | 695,835 | |||||
Premises and equipment, net | 20,495 | 20,733 | |||||
Goodwill | 27,638 | 27,638 | |||||
Core deposit and other intangibles | 4,598 | 4,780 | |||||
Bank owned life insurance | 22,095 | 21,936 | |||||
Other assets | 8,755 | 7,225 | |||||
TOTAL ASSETS | $ | 1,129,497 | 1,108,066 | ||||
LIABILITIES: | |||||||
Deposits: | |||||||
Noninterest-bearing | $ | 209,521 | 213,303 | ||||
Interest-bearing | 764,204 | 732,902 | |||||
Total deposits | 973,725 | 946,205 | |||||
Short-term borrowings | 13,454 | 16,645 | |||||
Long-term debt | 6,153 | 11,357 | |||||
Accrued interest and other liabilities | 7,589 | 8,164 | |||||
TOTAL LIABILITIES | 1,000,921 | 982,371 | |||||
SHAREHOLDERS' EQUITY: | |||||||
Preferred shares – no par value, authorized 1,000,000 shares, none outstanding | — | — | |||||
Common shares – no par value, authorized 12,000,000 shares, issued 10,071,210 and 10,064,945 shares at March 31, 2015 and December 31, 2014, respectively | 67,283 | 67,181 | |||||
Retained earnings | 70,738 | 69,394 | |||||
Treasury shares at cost, 753,627 shares at March 31, 2015 and December 31, 2014 | (11,665 | ) | (11,665 | ) | |||
Accumulated other comprehensive loss, net of taxes | 2,220 | 785 | |||||
TOTAL SHAREHOLDERS' EQUITY | 128,576 | 125,695 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 1,129,497 | 1,108,066 |
LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
INTEREST INCOME: | ||||||||
Interest and fees on loans | $ | 8,540 | 7,696 | |||||
Interest on investment securities – | ||||||||
Taxable | 856 | 891 | ||||||
Non-taxable | 653 | 646 | ||||||
Other short-term investments | 41 | 45 | ||||||
TOTAL INTEREST INCOME | 10,090 | 9,278 | ||||||
INTEREST EXPENSE: | ||||||||
Interest on deposits | 682 | 809 | ||||||
Interest on short-term borrowings | 4 | 3 | ||||||
Interest on long-term debt | 76 | 103 | ||||||
TOTAL INTEREST EXPENSE | 762 | 915 | ||||||
NET INTEREST INCOME | 9,328 | 8,363 | ||||||
PROVISION FOR LOAN LOSSES | 69 | 81 | ||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 9,259 | 8,282 | ||||||
NON-INTEREST INCOME: | ||||||||
Trust income | 800 | 655 | ||||||
Service charges and fees on deposit accounts | 1,107 | 1,122 | ||||||
Net gain (loss) on sales of securities | 111 | (4 | ) | |||||
Bank owned life insurance income | 159 | 172 | ||||||
Gains from sales of mortgage loans | 35 | 15 | ||||||
Other operating income | 94 | 117 | ||||||
TOTAL NON-INTEREST INCOME | 2,306 | 2,077 | ||||||
NON-INTEREST EXPENSE: | ||||||||
Salaries and employee benefits | 4,290 | 3,918 | ||||||
Equipment expenses | 288 | 294 | ||||||
Occupancy expense, net | 595 | 651 | ||||||
State franchise tax | 252 | 244 | ||||||
Marketing | 163 | 132 | ||||||
FDIC insurance premiums | 151 | 149 | ||||||
Merger-related expenses | 70 | 1,292 | ||||||
Other non-interest expense | 1,840 | 1,992 | ||||||
TOTAL NON-INTEREST EXPENSE | 7,649 | 8,672 | ||||||
INCOME BEFORE INCOME TAXES | 3,916 | 1,687 | ||||||
PROVISION FOR INCOME TAXES | 1,082 | 364 | ||||||
NET INCOME | $ | 2,834 | 1,323 | |||||
Dividends declared per common share | $ | 0.16 | 0.16 | |||||
Earnings per common share: | ||||||||
Basic | $ | 0.30 | 0.14 | |||||
Diluted | 0.30 | 0.14 | ||||||
Weighted average common shares outstanding: | ||||||||
Basic | 9,312,636 | 9,288,400 | ||||||
Diluted | 9,410,774 | 9,413,049 |