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