Exhibit 99.1
Press Release
April 18, 2019
LCNB CORP. REPORTS FINANCIAL RESULTS FOR
THE THREE MONTHS ENDED MARCH 31, 2019
LEBANON, Ohio--LCNB Corp. ("LCNB") (NASDAQ: LCNB) today announced net income of $4,627,000 (total basic and diluted earnings per share of $0.35) for the three months ended March 31, 2019. This compares to net income of $2,713,000 (total basic and diluted earnings per share of $0.27) for the same three month period in 2018.
Commenting on the financial results, LCNB Chief Executive Officer Steve Foster said, "We are pleased to report our financial results for the three months ended March 31, 2019. The acquisition of Columbus First Bancorp on May 31, 2018 had a positive effect on our loan balances and, consequently, on net interest income. Our average loan to deposit ratio for the first quarter 2018 was 76.25%, compared to 89.56% for the first quarter 2019. As a result, net interest income increased from $10,188,000 for the first quarter 2018 to $13,391,000 for the first quarter 2019."
Net interest income for the three months ended March 31, 2019 was $3,203,000 greater than the comparable period in 2018, primarily due to growth in LCNB's average loan portfolio, partially offset by a decrease in average investment securities and increases in average deposits and long-term borrowings. Also offsetting the growth in the loan portfolio was a market-driven increase in average rates paid on deposits. Loans, deposits, and long-term borrowings obtained through the merger with Columbus First Bancorp ("CFB") were a considerable component of LCNB's loan portfolio growth and the increases in deposits and long-term borrowings.
The provision for loan losses for the three months ended March 31, 2019 was $184,000 less than the comparable period in 2018. Non-accrual loans and loans past due 90 days or more and still accruing interest decreased $78,000, from $3,100,000 or 0.26% of total loans at December 31, 2018 to $3,022,000 or 0.25% of total loans at March 31, 2019.
Non-interest income for the three months ended March 31, 2019 was $136,000 greater than the comparable period in 2018 primarily due to increases in fiduciary income and market-driven increases in the fair value of equity security investments, slightly offset by a decrease in net gains from sales of debt security investments.
Non-interest expense for the three months ended March 31, 2019 was $1,151,000 greater than the comparable period in 2018 primarily due to increases in salaries and employee benefits, state financial institutions tax, marketing, amortization of intangibles, and contracted services expenses. Salaries and employee benefits increased primarily due to salary and wage increases and newly hired employees, including CFB employees retained. State financial institutions tax expense increased due to a larger capital base (Ohio financial institutions tax is based on capital, not income), largely caused by stock issued to CFB stockholders as merger consideration. Marketing expense increased primarily due to promotion costs for new checking products introduced in 2018, increased marketing activities in the Columbus area, and expanded use of broadcast and digital media. Amortization of intangibles increased due to amortization of CFB's core deposit intangible. A decrease in merger related expenses partially offset these increases.
LCNB Corp. is a financial holding company headquartered in Lebanon, Ohio. Through its subsidiary, LCNB National Bank (the “Bank”), it serves customers and communities in Southwest and South Central Ohio. A financial institution with a long tradition for building strong relationships with customers and communities, the Bank offers convenient banking locations in Butler, Clermont, Clinton, Fayette, Franklin, Hamilton, Montgomery, Preble, Ross, and Warren Counties, Ohio. The Bank continually strives to exceed customer expectations and provides an array of services for all personal and business banking needs including checking, savings, online banking, personal lending, business lending, agricultural lending, business support, deposit and treasury, investment services, trust and IRAs and stock purchases. LCNB Corp. common shares are traded on the NASDAQ Capital Market Exchange® under the symbol “LCNB.” Learn more about LCNB Corp. at www.lcnb.com.
Certain statements made in this news release regarding LCNB’s financial condition, results of operations, plans, objectives, future performance and business, are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements are identified by the fact they are not historical facts and include words such as “anticipate”, “could”, “may”, “feel”, “expect”, “believe”, “plan”, and similar expressions. Please refer to LCNB’s Annual Report on Form 10-K for the year ended December 31, 2018, as well as its other filings with the SEC, for a more detailed discussion of risks, uncertainties and factors that could cause actual results to differ from those discussed in the forward-looking statements.
These forward-looking statements reflect management's current expectations based on all information available to management and its knowledge of LCNB’s business and operations. Additionally, LCNB’s financial condition, results of operations, plans, objectives, future performance and business are subject to risks and uncertainties that may cause actual results to differ materially. These factors include, but are not limited to:
| |
| 1. | the success, impact, and timing of the implementation of LCNB’s business strategies; |
| |
| 2. | LCNB’s ability to integrate recent and future acquisitions, including the merger with CFB, may be unsuccessful, or may be more difficult, time-consuming or costly than expected; |
| |
| 3. | LCNB may incur increased charge-offs in the future; |
| |
| 4. | LCNB may face competitive loss of customers; |
| |
| 5. | changes in the interest rate environment may have results on LCNB’s operations materially different from those anticipated by LCNB’s market risk management functions; |
| |
| 6. | changes in general economic conditions and increased competition could adversely affect LCNB’s operating results; |
| |
| 7. | changes in other regulations and government policies affecting bank holding companies and their subsidiaries, including changes in monetary policies, could negatively impact LCNB’s operating results; |
| |
| 8. | LCNB may experience difficulties growing loan and deposit balances; |
| |
| 9. | the current economic environment poses significant challenges for us and could adversely affect LCNB's financial condition and results of operations; |
| |
| 10. | deterioration in the financial condition of the U.S. banking system may impact the valuations of investments LCNB has made in the securities of other financial institutions resulting in either actual losses or other than temporary impairments on such investments; |
| |
| 11. | difficulties with technology or data security breaches, including cyberattacks, that could negatively affect LCNB's ability to conduct business and its relationships with customers, vendors, and others; and |
| |
| 12. | government intervention in the U.S. financial system, including the effects of recent legislative, tax, accounting and regulatory actions and reforms, including the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), the Jumpstart Our Business Startups Act, the Consumer Financial Protection Bureau, the capital ratios of Basel III as adopted by the federal banking authorities, and the Tax Cuts and Jobs Act. |
Forward-looking statements made herein reflect management's expectations as of the date such statements are made. Such information is provided to assist shareholders and potential investors in understanding current and anticipated financial operations of LCNB and is included pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. LCNB undertakes no obligation to update any forward-looking statement to reflect events or circumstances that arise after the date such statements are made.
