LCNB (LCNB) 8-K LCNB Corp. Reports Financial Results for

Exhibit 99.2

LCNB Corp. and Subsidiaries

Financial Highlights

(Dollars in thousands, except per share amounts)

(Unaudited)

	Three Months Ended											Year Ended
	12/31/2019			9/30/2019		6/30/2019		3/31/2019		12/31/2018		12/31/2019		12/31/2018
Condensed Income Statement
Interest income	$	16,424		16,329		16,328		16,113		15,844		65,194		54,594
Interest expense	2,577			2,751		2,738		2,722		2,334		10,788		6,425
Net interest income	13,847			13,578		13,590		13,391		13,510		54,406		48,169
Provision (credit) for loan losses	(6		)	264		54		(105	)	(39	)	207		923
Net interest income after provision	13,853			13,314		13,536		13,496		13,549		54,199		47,246
Non-interest income	3,222			3,356		2,998		2,772		2,702		12,348		11,050
Non-interest expense	11,007			10,982		10,833		10,700		9,925		43,522		40,502
Income before income taxes	6,068			5,688		5,701		5,568		6,326		23,025		17,794
Provision for income taxes	1,238			961		973		941		1,133		4,113		2,949
Net income	$	4,830		4,727		4,728		4,627		5,193		18,912		14,845
Amort/Accret income on acquired loans	$	400		302		355		224		229		1,281		567
Amort/Accret expenses on acquired interest-bearing liabilities	$	3		4		142		144		149		293		363
Tax-equivalent net interest income	$	13,937		13,679		13,700		13,536		13,680		54,852		48,883
Per Share Data
Dividends per share	$	0.18		0.17		0.17		0.17		0.17		0.69		0.65
Basic earnings per common share	$	0.37		0.36		0.36		0.35		0.40		1.44		1.24
Diluted earnings per common share	$	0.37		0.36		0.36		0.35		0.40		1.44		1.24
Book value per share	$	17.63		17.44		17.18		16.83		16.47		17.63		16.47
Tangible book value per share	$	12.78		12.57		12.31		12.05		11.67		12.78		11.67
Weighted average common shares outstanding:
Basic	12,912,106			12,932,950		13,192,691		13,283,634		13,285,386		13,078,920		11,935,350
Diluted	12,916,000			12,937,145		13,196,665		13,287,338		13,290,499		13,082,893		11,942,253
Shares outstanding at period end	12,936,783			12,927,463		12,978,554		13,314,148		13,295,276		12,936,783		13,295,276
Selected Financial Ratios
Return on average assets	1.17		%	1.13	%	1.16	%	1.15	%	1.27	%	1.15	%	1.00	%
Return on average equity	8.42		%	8.33	%	8.46	%	8.47	%	9.55	%	8.42	%	7.90	%
Dividend payout ratio	48.65		%	47.22	%	47.22	%	48.57	%	42.50	%	47.92	%	52.42	%
Net interest margin (tax equivalent)	3.76		%	3.67	%	3.72	%	3.71	%	3.69	%	3.71	%	3.63	%
Efficiency ratio (tax equivalent)	64.15		%	64.47	%	64.87	%	65.61	%	60.58	%	64.76	%	67.58	%
Selected Balance Sheet Items
Cash and cash equivalents	$	20,765		22,826		23,185		19,527		20,040
Debt and equity securities	219,791			239,730		246,701		264,559		282,813
Loans:
Commercial and industrial	$	78,306		71,576		79,513		79,725		77,740
Commercial, secured by real estate	804,953			797,842		793,863		764,424		740,647
Residential real estate	322,533			320,703		326,029		334,227		349,127
Consumer	25,232			23,918		19,649		17,409		17,283
Agricultural	11,509			11,525		10,843		10,900		13,297
Other, including deposit overdrafts	1,193			456		373		409		450
Deferred net origination costs (fees)	(275		)	(128	)	(9	)	40		79
Loans, gross	1,243,451			1,225,892		1,230,261		1,207,134		1,198,623
Less allowance for loan losses	4,045			4,167		4,112		4,126		4,046
Loans, net	$	1,239,406		1,221,725		1,226,149		1,203,008		1,194,577
Total earning assets	$	1,466,988		1,470,074		1,482,913		1,476,862		1,483,166
Total assets	1,639,308			1,644,447		1,642,012		1,632,387		1,636,927
Total deposits	1,348,280			1,355,383		1,357,959		1,347,857		1,300,919

	Three Months Ended											Year Ended
	12/31/2019			9/30/2019		6/30/2019		3/31/2019		12/31/2018		12/31/2019		12/31/2018
Selected Balance Sheet Items, continued
Short-term borrowings	—			—		—		—		56,230
Long-term debt	40,994			41,990		41,986		42,982		47,032
Total shareholders’ equity	228,048			225,492		222,972		224,018		218,985
Equity to assets ratio	13.91		%	13.71	%	13.58	%	13.72	%	13.38	%
Loans to deposits ratio	92.22		%	90.45	%	90.60	%	89.56	%	92.14	%
Tangible common equity (TCE)	$	165,304		162,485		159,702		160,488		155,197
Tangible common assets (TCA)	1,576,564			1,581,440		1,578,742		1,568,857		1,573,139
TCE/TCA	10.49		%	10.27	%	10.12	%	10.23	%	9.87	%
Selected Average Balance Sheet Items
Cash and cash equivalents	$	26,501		28,293		29,523		25,080		20,685		27,321		23,910
Debt and equity securities	231,115			243,553		249,954		266,081		291,433		247,569		303,839
Loans	$	1,230,845		1,227,806		1,217,726		1,208,809		1,177,061		1,221,375		1,038,159
Less allowance for loan losses	4,076			3,986		4,088		4,074		4,016		4,056		3,822
Net loans	$	1,226,769		1,223,820		1,213,638		1,204,735		1,173,045		1,217,319		1,034,337
Total earning assets	$	1,469,469		1,480,096		1,479,225		1,480,634		1,471,650		1,477,333		1,347,162
Total assets	1,643,793			1,654,034		1,637,645		1,635,416		1,626,029		1,642,591		1,488,941
Total deposits	1,352,101			1,365,702		1,352,449		1,333,529		1,333,673		1,351,036		1,258,075
Short-term borrowings	622			468		243		23,235		36,348		6,064		13,967
Long-term debt	41,742			41,988		42,567		44,676		25,536		42,733		16,789
Total shareholders’ equity	227,595			225,216		224,203		221,470		215,739		224,639		187,915
Equity to assets ratio	13.85		%	13.62	%	13.69	%	13.54	%	13.27	%	13.68	%	12.62	%
Loans to deposits ratio	91.03		%	89.90	%	90.04	%	90.65	%	88.26	%	90.40	%	82.52	%
Asset Quality
Net charge-offs (recoveries)	$	115		209		68		(185	)	(68	)	207		280
Other real estate owned	197			197		197		244		244		197		244
Non-accrual loans	3,210			3,523		2,962		2,845		2,951		3,210		2,951
Loans past due 90 days or more and still accruing	—			—		24		177		149		—		149
Total nonperforming loans	$	3,210		3,523		2,986		3,022		3,100		3,210		3,100
Net charge-offs (recoveries) to average loans	0.04		%	0.07	%	0.02	%	(0.06	)%	(0.02	)%	0.02	%	0.03	%
Allowance for loan losses to total loans	0.33		%	0.34	%	0.33	%	0.34	%	0.34	%	0.33	%	0.34	%
Nonperforming loans to total loans	0.26		%	0.29	%	0.24	%	0.25	%	0.26	%	0.26	%	0.26	%
Nonperforming assets to total assets	0.21		%	0.23	%	0.19	%	0.20	%	0.20	%	0.21	%	0.20	%
Assets Under Management
LCNB Corp. total assets	$	1,639,308		1,644,447		1,642,012		1,632,387		1,636,927
Trust and investments (fair value)	435,664			411,724		382,462		367,649		337,549
Mortgage loans serviced	93,596			90,784		88,444		89,049		97,685
Cash management	75,948			117,530		71,973		55,981		48,906
Brokerage accounts (fair value)	268,059			262,038		260,202		245,758		233,751
Total assets managed	$	2,512,575		2,526,523		2,445,093		2,390,824		2,354,818
Non-GAAP Financial Measures
Net income	$	4,830		4,727		4,728		4,627		5,193		18,912		14,845
Add: merger-related expenses, net of tax	0			21		16		53		148		90		1,753
Adjusted net income	$	4,830		4,748		4,744		4,680		5,341		19,002		16,598
Basic adjusted earnings per share	0.37			0.37		0.36		0.36		0.41		1.46		1.39
Diluted adjusted earnings per share	0.37			0.37		0.36		0.36		0.41		1.46		1.39
Adjusted return on average assets	1.17		%	1.14	%	1.16	%	1.16	%	1.30	%	1.16	%	1.11	%
Adjusted return on average equity	8.42		%	8.36	%	8.49	%	8.57	%	9.82	%	8.46	%	8.83	%

LCNB CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

(Dollars in thousands)

	December 31, 2019 (Unaudited)			December 31, 2018
ASSETS:
Cash and due from banks	$	17,019		18,310
Interest-bearing demand deposits	3,746			1,730
Total cash and cash equivalents	20,765			20,040
Interest-bearing time deposits	—			996
Investment securities:
Equity securities with a readily determinable fair value, at fair value	2,312			2,078
Equity securities without a readily determinable fair value, at cost	2,099			2,099
Debt securities, available-for-sale, at fair value	178,000			238,421
Debt securities, held-to-maturity, at cost	27,525			29,721
Federal Reserve Bank stock, at cost	4,652			4,653
Federal Home Loan Bank stock, at cost	5,203			4,845
Loans, net	1,239,406			1,194,577
Premises and equipment, net	34,787			32,627
Operating leases right of use asset	5,444			—
Goodwill	59,221			59,221
Core deposit and other intangibles	4,006			5,042
Bank owned life insurance	41,667			28,723
Other assets	14,221			13,884
TOTAL ASSETS	$	1,639,308		1,636,927
LIABILITIES:
Deposits:
Noninterest-bearing	$	354,391		322,571
Interest-bearing	993,889			978,348
Total deposits	1,348,280			1,300,919
Short-term borrowings	—			56,230
Long-term debt	40,994			47,032
Operating leases liability	5,446			—
Accrued interest and other liabilities	16,540			13,761
TOTAL LIABILITIES	1,411,260			1,417,942
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 at December 31, 2019 and 2018; issued 14,111,810 and 14,070,303 shares at December 31, 2019 and 2018, respectively	141,791			141,170
Retained earnings	104,431			94,547
Treasury shares at cost, 1,175,027 and 775,027 shares at December 31, 2019 and 2018, respectively	(18,847		)	(12,013	)
Accumulated other comprehensive income (loss), net of taxes	673			(4,719	)
TOTAL SHAREHOLDERS' EQUITY	228,048			218,985
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	1,639,308		1,636,927

LCNB CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)

	Three Months Ended  December 31,					Year Ended  December 31,
	2019			2018		2019		2018
INTEREST INCOME:
Interest and fees on loans	$	14,937		14,010		59,009		47,489
Dividends on equity securities with a readily determinable fair value	15			17		62		65
Dividends on equity securities without a readily determinable fair value	17			17		65		39
Interest on debt securities, taxable	881			900		3,601		3,666
Interest on debt securities, non-taxable	337			641		1,677		2,686
Interest on interest-bearing time deposits	—			24		11		58
Other investments	237			235		769		591
TOTAL INTEREST INCOME	16,424			15,844		65,194		54,594
INTEREST EXPENSE:
Interest on deposits	2,301			1,976		9,526		5,753
Interest on short-term borrowings	3			223		227		311
Interest on long-term debt	273			135		1,035		361
TOTAL INTEREST EXPENSE	2,577			2,334		10,788		6,425
NET INTEREST INCOME	13,847			13,510		54,406		48,169
PROVISION (CREDIT) FOR LOAN LOSSES	(6		)	(39	)	207		923
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	13,853			13,549		54,199		47,246
NON-INTEREST INCOME:
Fiduciary income	1,139			971		4,354		3,958
Service charges and fees on deposit accounts	1,454			1,420		5,875		5,590
Net losses on sales of debt securities	(4		)	—		(41	)	(8	)
Bank owned life insurance income	289			185		943		738
Gains from sales of loans	121			41		328		223
Other operating income	223			85		889		549
TOTAL NON-INTEREST INCOME	3,222			2,702		12,348		11,050
NON-INTEREST EXPENSE:
Salaries and employee benefits	6,512			5,488		25,320		21,279
Equipment expenses	343			341		1,209		1,138
Occupancy expense, net	703			742		2,961		2,861
State financial institutions tax	362			299		1,669		1,197
Marketing	310			321		1,319		1,119
Amortization of intangibles	263			263		1,043		922
FDIC insurance premiums, net	—			130		225		419
Contracted services	471			454		1,865		1,547
Other real estate owned	1			16		53		20
Merger-related expenses	—			164		114		2,123
Other non-interest expense	2,042			1,707		7,744		7,877
TOTAL NON-INTEREST EXPENSE	11,007			9,925		43,522		40,502
INCOME BEFORE INCOME TAXES	6,068			6,326		23,025		17,794
PROVISION FOR INCOME TAXES	1,238			1,133		4,113		2,949
NET INCOME	$	4,830		5,193		18,912		14,845
Dividends declared per common share	$	0.18		0.17		0.69		0.65
Earnings per common share:
Basic	0.37			0.40		1.44		1.24
Diluted	0.37			0.40		1.44		1.24
Weighted average common shares outstanding:
Basic	12,912,106			13,285,386		13,078,920		11,935,350
Diluted	12,916,000			13,290,499		13,082,893		11,942,253

Contacts

LCNB Corp.

Eric J. Meilstrup, CEO and President, 800-344-BANK

Robert C. Haines II, Executive Vice President and CFO, 800-344-BANK