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
	3/31/2020			12/31/2019		9/30/2019		6/30/2019		3/31/2019
Condensed Income Statement
Interest income	$	16,556		16,424		16,329		16,328		16,113
Interest expense	2,378			2,577		2,751		2,738		2,722
Net interest income	14,178			13,847		13,578		13,590		13,391
Provision (credit) for loan losses	1,173			(6	)	264		54		(105	)
Net interest income after provision	13,005			13,853		13,314		13,536		13,496
Non-interest income	3,839			3,222		3,356		2,998		2,772
Non-interest expense	11,072			11,007		10,982		10,833		10,700
Income before income taxes	5,772			6,068		5,688		5,701		5,568
Provision for income taxes	746			1,238		961		973		941
Net income	$	5,026		4,830		4,727		4,728		4,627
Amort/Accret income on acquired loans	$	667		400		302		355		224
Amort/Accret expenses on acquired interest-bearing liabilities	$	3		3		4		142		144
Tax-equivalent net interest income	$	14,254		13,937		13,679		13,700		13,536
Per Share Data
Dividends per share	$	0.18		0.18		0.17		0.17		0.17
Basic earnings per common share	$	0.39		0.37		0.36		0.36		0.35
Diluted earnings per common share	$	0.39		0.37		0.36		0.36		0.35
Book value per share	$	18.00		17.63		17.44		17.18		16.83
Tangible book value per share	$	13.18		12.78		12.57		12.31		12.05
Weighted average common shares outstanding:
Basic	12,926,077			12,912,106		12,932,950		13,192,691		13,283,634
Diluted	12,927,666			12,916,000		12,937,145		13,196,665		13,287,338
Shares outstanding at period end	12,969,076			12,936,783		12,927,463		12,978,554		13,314,148
Selected Financial Ratios
Return on average assets	1.23		%	1.17	%	1.13	%	1.16	%	1.15	%
Return on average equity	8.75		%	8.42	%	8.33	%	8.46	%	8.47	%
Dividend payout ratio	46.15		%	48.65	%	47.22	%	47.22	%	48.57	%
Net interest margin (tax equivalent)	3.92		%	3.76	%	3.67	%	3.72	%	3.71	%
Efficiency ratio (tax equivalent)	61.19		%	64.15	%	64.47	%	64.87	%	65.61	%
Selected Balance Sheet Items
Cash and cash equivalents	$	24,795		20,765		22,826		23,185		19,527
Debt and equity securities	183,123			219,791		239,730		246,701		264,559
Loans:
Commercial and industrial	$	85,356		78,306		71,576		79,513		79,725
Commercial, secured by real estate	829,461			804,953		797,842		793,863		764,424
Residential real estate	318,009			322,533		320,703		326,029		334,227
Consumer	28,955			25,232		23,918		19,649		17,409
Agricultural	10,519			11,509		11,525		10,843		10,900
Other, including deposit overdrafts	436			1,193		456		373		409
Deferred net origination costs (fees)	(349		)	(275	)	(128	)	(9	)	40
Loans, gross	1,272,387			1,243,451		1,225,892		1,230,261		1,207,134
Less allowance for loan losses	5,008			4,045		4,167		4,112		4,126
Loans, net	$	1,267,379		1,239,406		1,221,725		1,226,149		1,203,008
Total earning assets	$	1,462,485		1,466,988		1,470,074		1,482,913		1,476,862
Total assets	1,636,280			1,639,308		1,644,447		1,642,012		1,632,387
Total deposits	1,345,872			1,348,280		1,355,383		1,357,959		1,347,857

	Three Months Ended
	3/31/2020			12/31/2019		9/30/2019		6/30/2019		3/31/2019
Selected Balance Sheet Items, continued
Long-term debt	35,996			40,994		41,990		41,986		42,982
Total shareholders’ equity	233,478			228,048		225,492		222,972		224,018
Equity to assets ratio	14.27		%	13.91	%	13.71	%	13.58	%	13.72	%
Loans to deposits ratio	94.54		%	92.22	%	90.45	%	90.60	%	89.56	%
Tangible common equity (TCE)	$	170,994		165,304		162,485		159,702		160,488
Tangible common assets (TCA)	1,573,796			1,576,564		1,581,440		1,578,742		1,568,857
TCE/TCA	10.87		%	10.49	%	10.27	%	10.12	%	10.23	%
Selected Average Balance Sheet Items
Cash and cash equivalents	$	25,101		26,501		28,293		29,523		25,080
Debt and equity securities	204,912			231,115		243,553		249,954		266,081
Loans	$	1,252,554		1,230,845		1,227,806		1,217,726		1,208,809
Less allowance for loan losses	3,938			4,076		3,986		4,088		4,074
Net loans	$	1,248,616		1,226,769		1,223,820		1,213,638		1,204,735
Total earning assets	$	1,462,946		1,469,469		1,480,096		1,479,225		1,480,634
Total assets	1,638,486			1,643,793		1,654,034		1,637,645		1,635,416
Total deposits	1,346,770			1,352,101		1,365,702		1,352,449		1,333,529
Short-term borrowings	1,415			622		468		243		23,235
Long-term debt	38,325			41,742		41,988		42,567		44,676
Total shareholders’ equity	231,058			227,595		225,216		224,203		221,470
Equity to assets ratio	14.10		%	13.85	%	13.62	%	13.69	%	13.54	%
Loans to deposits ratio	93.00		%	91.03	%	89.90	%	90.04	%	90.65	%
Asset Quality
Net charge-offs (recoveries)	$	210		115		209		68		(185	)
Other real estate owned	0			197		197		197		244
Non-accrual loans	2,829			3,210		3,523		2,962		2,845
Loans past due 90 days or more and still accruing	39			—		—		24		177
Total nonperforming loans	$	2,868		3,210		3,523		2,986		3,022
Net charge-offs (recoveries) to average loans	0.07		%	0.04	%	0.07	%	0.02	%	(0.06	)%
Allowance for loan losses to total loans	0.39		%	0.33	%	0.34	%	0.33	%	0.34	%
Nonperforming loans to total loans	0.23		%	0.26	%	0.29	%	0.24	%	0.25	%
Nonperforming assets to total assets	0.18		%	0.21	%	0.23	%	0.19	%	0.20	%
Assets Under Management
LCNB Corp. total assets	$	1,636,280		1,639,308		1,644,447		1,642,012		1,632,387
Trust and investments (fair value)	455,974			435,664		411,724		382,462		367,649
Mortgage loans serviced	94,805			93,596		90,784		88,444		89,049
Cash management	77,471			75,948		117,530		71,973		55,981
Brokerage accounts (fair value)	235,278			268,059		262,038		260,202		245,758
Total assets managed	$	2,499,808		2,512,575		2,526,523		2,445,093		2,390,824
Non-GAAP Financial Measures
Net income	$	5,026		4,830		4,727		4,728		4,627
Add: merger-related expenses, net of tax	0			0		21		16		53
Adjusted net income	$	5,026		4,830		4,748		4,744		4,680
Basic adjusted earnings per share	0.39			0.37		0.37		0.36		0.36
Diluted adjusted earnings per share	0.39			0.37		0.37		0.36		0.36
Adjusted return on average assets	1.23		%	1.17	%	1.14	%	1.16	%	1.16	%
Adjusted return on average equity	8.75		%	8.42	%	8.36	%	8.49	%	8.57	%

LCNB CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

(Dollars in thousands)

	March 31, 2020 (Unaudited)			December 31, 2019
ASSETS:
Cash and due from banks	$	17,820		17,019
Interest-bearing demand deposits	6,975			3,746
Total cash and cash equivalents	24,795			20,765
Investment securities:
Equity securities with a readily determinable fair value, at fair value	2,036			2,312
Equity securities without a readily determinable fair value, at cost	2,099			2,099
Debt securities, available-for-sale, at fair value	141,439			178,000
Debt securities, held-to-maturity, at cost	27,694			27,525
Federal Reserve Bank stock, at cost	4,652			4,652
Federal Home Loan Bank stock, at cost	5,203			5,203
Loans, net	1,267,379			1,239,406
Premises and equipment, net	35,017			34,787
Operating leases right of use asset	5,621			5,444
Goodwill	59,221			59,221
Core deposit and other intangibles	3,751			4,006
Bank owned life insurance	41,309			41,667
Other assets	16,064			14,221
TOTAL ASSETS	$	1,636,280		1,639,308
LIABILITIES:
Deposits:
Noninterest-bearing	$	342,442		354,391
Interest-bearing	1,003,430			993,889
Total deposits	1,345,872			1,348,280
Long-term debt	35,996			40,994
Operating leases liability	5,659			5,446
Accrued interest and other liabilities	15,275			16,540
TOTAL LIABILITIES	1,402,802			1,411,260
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 March 31, 2020 and December 31, 2019; issued 14,144,103 and 14,111,810 shares at March 31, 2020 and December 31, 2019, respectively	142,046			141,791
Retained earnings	107,123			104,431
Treasury shares at cost, 1,175,027 shares at March 31, 2020 and December 31, 2019	(18,847		)	(18,847	)
Accumulated other comprehensive income, net of taxes	3,156			673
TOTAL SHAREHOLDERS' EQUITY	233,478			228,048
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	1,636,280		1,639,308

LCNB CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)

	Three Months Ended  March 31,
	2020			2019
INTEREST INCOME:
Interest and fees on loans	$	15,227		14,538
Dividends on equity securities with a readily determinable fair value	14			17
Dividends on equity securities without a readily determinable fair value	16			16
Interest on debt securities, taxable	950			869
Interest on debt securities, non-taxable	285			544
Interest on interest-bearing time deposits	—			5
Other investments	64			124
TOTAL INTEREST INCOME	16,556			16,113
INTEREST EXPENSE:
Interest on deposits	2,117			2,286
Interest on short-term borrowings	7			219
Interest on long-term debt	254			217
TOTAL INTEREST EXPENSE	2,378			2,722
NET INTEREST INCOME	14,178			13,391
PROVISION (CREDIT) FOR LOAN LOSSES	1,173			(105	)
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	13,005			13,496
NON-INTEREST INCOME:
Fiduciary income	1,103			1,034
Service charges and fees on deposit accounts	1,295			1,308
Net gains (losses) on sales of debt securities	221			(18	)
Bank owned life insurance income	601			182
Gains from sales of loans	120			29
Other operating income	499			237
TOTAL NON-INTEREST INCOME	3,839			2,772
NON-INTEREST EXPENSE:
Salaries and employee benefits	6,768			6,162
Equipment expenses	287			266
Occupancy expense, net	682			763
State financial institutions tax	436			438
Marketing	177			302
Amortization of intangibles	260			257
FDIC insurance premiums (credit), net	(1		)	126
Contracted services	402			464
Other real estate owned	(10		)	3
Merger-related expenses	—			67
Other non-interest expense	2,071			1,852
TOTAL NON-INTEREST EXPENSE	11,072			10,700
INCOME BEFORE INCOME TAXES	5,772			5,568
PROVISION FOR INCOME TAXES	746			941
NET INCOME	$	5,026		4,627
Dividends declared per common share	$	0.18		0.17
Earnings per common share:
Basic	0.39			0.35
Diluted	0.39			0.35
Weighted average common shares outstanding:
Basic	12,926,077			13,283,634
Diluted	12,927,666			13,287,338

Contacts

LCNB Corp.

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

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