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															Six Months Ended
	6/30/2020			3/31/2020		12/31/2019		9/30/2019		6/30/2019		6/30/2020		6/30/2019
Condensed Income Statement
Interest income	$	15,957		16,556		16,424		16,329		16,328		32,513		32,441
Interest expense	1,959			2,378		2,577		2,751		2,738		4,337		5,460
Net interest income	13,998			14,178		13,847		13,578		13,590		28,176		26,981
Provision (credit) for loan losses	16			1,173		(6)		264		54		1,189		(51)
Net interest income after provision	13,982			13,005		13,853		13,314		13,536		26,987		27,032
Non-interest income	3,319			3,839		3,222		3,356		2,998		7,158		5,770
Non-interest expense	11,116			11,072		11,007		10,982		10,833		22,188		21,533
Income before income taxes	6,185			5,772		6,068		5,688		5,701		11,957		11,269
Provision for income taxes	1,128			746		1,238		961		973		1,874		1,914
Net income	$	5,057		5,026		4,830		4,727		4,728		10,083		9,355
Amort/Accret income on acquired loans	$	294		667		400		302		355		961		579
Amort/Accret expenses on acquired interest-bearing liabilities	$	2		3		3		4		142		4		286
Tax-equivalent net interest income	$	14,006		14,254		13,937		13,679		13,700		28,319		27,236
Per Share Data
Dividends per share	$	0.18		0.18		0.18		0.17		0.17		0.36		0.34
Basic earnings per common share	$	0.39		0.39		0.37		0.36		0.36		0.78		0.71
Diluted earnings per common share	$	0.39		0.39		0.37		0.36		0.36		0.78		0.71
Book value per share	$	18.27		18.00		17.63		17.44		17.18		18.27		17.18
Tangible book value per share	$	13.47		13.18		12.78		12.57		12.31		13.47		12.31
Weighted average common shares outstanding:
Basic	12,940,975			12,926,077		12,912,106		12,932,950		13,192,691		12,933,528		13,237,909
Diluted	12,941,001			12,927,666		12,916,000		12,937,145		13,196,665		12,934,158		13,241,752
Shares outstanding at period end	12,975,879			12,969,076		12,936,783		12,927,463		12,978,554		12,975,879		12,978,554
Selected Financial Ratios
Return on average assets	1.19		%	1.23	%	1.17	%	1.13	%	1.16	%	1.21	%	1.15	%
Return on average equity	8.63		%	8.75	%	8.42	%	8.33	%	8.46	%	8.69	%	8.47	%
Return on average tangible equity	11.74		%	12.00	%	11.63	%	11.57	%	11.87	%	11.92	%	11.84	%
Dividend payout ratio	46.15		%	46.15	%	48.65	%	47.22	%	47.22	%	46.15	%	47.89	%
Net interest margin (tax equivalent)	3.70		%	3.92	%	3.76	%	3.67	%	3.72	%	3.81	%	3.71	%
Efficiency ratio (tax equivalent)	63.94		%	61.19	%	64.15	%	64.47	%	64.87	%	62.54	%	65.24	%
Selected Balance Sheet Items
Cash and cash equivalents	$	42,736		24,795		20,765		22,826		23,185
Debt and equity securities	194,883			183,123		219,791		239,730		246,701
Loans:
Commercial and industrial	$	125,492		85,356		78,306		71,576		79,513
Commercial, secured by real estate	833,286			829,461		804,953		797,842		793,863
Residential real estate	334,349			318,009		322,533		320,703		326,029
Consumer	32,859			28,955		25,232		23,918		19,649
Agricultural	11,071			10,519		11,509		11,525		10,843
Other, including deposit overdrafts	283			436		1,193		456		373
Deferred net origination fees	(1,902)			(349)		(275)		(128)		(9)
Loans, gross	1,335,438			1,272,387		1,243,451		1,225,892		1,230,261
Less allowance for loan losses	5,016			5,008		4,045		4,167		4,112
Loans, net	$	1,330,422		1,267,379		1,239,406		1,221,725		1,226,149
Total earning assets	$	1,554,537		1,462,485		1,466,988		1,470,074		1,482,913
Total assets	1,735,332			1,636,280		1,639,308		1,644,447		1,642,012
Total deposits	1,438,921			1,345,872		1,348,280		1,355,383		1,357,959

	Three Months Ended															Six Months Ended
	6/30/2020			3/31/2020		12/31/2019		9/30/2019		6/30/2019		6/30/2020		6/30/2019
Selected Balance Sheet Items, continued
Long-term debt	33,998			35,996		40,994		41,990		41,986
Total shareholders’ equity	237,047			233,478		228,048		225,492		222,972
Equity to assets ratio	13.66		%	14.27	%	13.91	%	13.71	%	13.58	%
Loans to deposits ratio	92.81		%	94.54	%	92.22	%	90.45	%	90.60	%
Tangible common equity (TCE)	$	174,823		170,994		165,304		162,485		159,702
Tangible common assets (TCA)	1,673,108			1,573,796		1,576,564		1,581,440		1,578,742
TCE/TCA	10.45		%	10.87	%	10.49	%	10.27	%	10.12	%
Selected Average Balance Sheet Items
Cash and cash equivalents	$	46,292		25,101		26,501		28,293		29,523		35,712		27,332
Debt and equity securities	182,371			204,912		231,115		243,553		249,954		193,642		257,972
Loans	$	1,318,753		1,252,554		1,230,845		1,227,806		1,217,726		1,285,654		1,213,292
Less allowance for loan losses	4,998			3,938		4,076		3,986		4,088		4,468		4,081
Net loans	$	1,313,755		1,248,616		1,226,769		1,223,820		1,213,638		1,281,186		1,209,211
Total earning assets	$	1,528,610		1,462,946		1,469,469		1,480,096		1,479,225		1,495,779		1,479,924
Total assets	1,704,303			1,638,486		1,643,793		1,654,034		1,637,645		1,671,394		1,636,370
Total deposits	1,412,082			1,346,770		1,352,101		1,365,702		1,352,449		1,379,426		1,343,042
Short-term borrowings	82			1,415		622		468		243		749		11,675
Long-term debt	34,964			38,325		41,742		41,988		42,567		36,644		43,616
Total shareholders’ equity	235,587			231,058		227,595		225,216		224,203		233,322		222,844
Equity to assets ratio	13.82		%	14.10	%	13.85	%	13.62	%	13.69	%	13.96	%	13.62	%
Loans to deposits ratio	93.39		%	93.00	%	91.03	%	89.90	%	90.04	%	93.20	%	90.34	%
Asset Quality
Net charge-offs (recoveries)	$	8		210		115		209		68		218		(117)
Other real estate owned	0			0		197		197		197		0		197
Non-accrual loans	3,876			2,829		3,210		3,523		2,962		3,876		2,962
Loans past due 90 days or more and still accruing	38			39		—		—		24		38		24
Total nonperforming loans	$	3,914		2,868		3,210		3,523		2,986		3,914		2,986
Net charge-offs (recoveries) to average loans	0.00		%	0.07	%	0.04	%	0.07	%	0.02	%	0.03	%	(0.02)	%
Allowance for loan losses to total loans	0.38		%	0.39	%	0.33	%	0.34	%	0.33	%	0.38	%	0.33	%
Nonperforming loans to total loans	0.29		%	0.23	%	0.26	%	0.29	%	0.24	%	0.29	%	0.24	%
Nonperforming assets to total assets	0.23		%	0.18	%	0.21	%	0.23	%	0.19	%	0.23	%	0.19	%
Assets Under Management
LCNB Corp. total assets	$	1,735,332		1,636,280		1,639,308		1,644,447		1,642,012
Trust and investments (fair value)	516,076			455,974		435,664		411,724		382,462
Mortgage loans serviced	100,189			94,805		93,596		90,784		88,444
Cash management	116,615			77,471		75,948		117,530		71,973
Brokerage accounts (fair value)	255,276			235,278		268,059		262,038		260,202
Total assets managed	$	2,723,488		2,499,808		2,512,575		2,526,523		2,445,093

LCNB CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

(Dollars in thousands)

	June 30, 2020 (Unaudited)		December 31, 2019
ASSETS:
Cash and due from banks	$	18,520	17,019
Interest-bearing demand deposits	24,216		3,746
Total cash and cash equivalents	42,736		20,765
Investment securities:
Equity securities with a readily determinable fair value, at fair value	2,163		2,312
Equity securities without a readily determinable fair value, at cost	2,099		2,099
Debt securities, available-for-sale, at fair value	153,529		178,000
Debt securities, held-to-maturity, at cost	27,237		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	1,330,422		1,239,406
Premises and equipment, net	35,383		34,787
Operating leases right of use asset	5,532		5,444
Goodwill	59,221		59,221
Core deposit and other intangibles	3,558		4,006
Bank owned life insurance	41,596		41,667
Other assets	22,001		14,221
TOTAL ASSETS	$	1,735,332	1,639,308
LIABILITIES:
Deposits:
Noninterest-bearing	$	431,697	354,391
Interest-bearing	1,007,224		993,889
Total deposits	1,438,921		1,348,280
Long-term debt	33,998		40,994
Operating leases liability	5,558		5,446
Accrued interest and other liabilities	19,808		16,540
TOTAL LIABILITIES	1,498,285		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 June 30, 2020 and December 31, 2019; issued 14,150,906 and 14,111,810 shares at June 30, 2020 and December 31, 2019, respectively	142,181		141,791
Retained earnings	109,845		104,431
Treasury shares at cost, 1,175,027 shares at June 30, 2020 and December 31, 2019	(18,847)		(18,847)
Accumulated other comprehensive income, net of taxes	3,868		673
TOTAL SHAREHOLDERS' EQUITY	237,047		228,048
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	1,735,332	1,639,308

LCNB CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)

	Three Months Ended  June 30,				Six Months Ended  June 30,
	2020		2019	2020	2019
INTEREST INCOME:
Interest and fees on loans	$	14,822	14,662	30,049	29,200
Dividends on equity securities with a readily determinable fair value	13		15	27	32
Dividends on equity securities without a readily determinable fair value	12		16	28	32
Interest on debt securities, taxable	667		933	1,617	1,802
Interest on debt securities, non-taxable	254		417	539	961
Interest on interest-bearing time deposits	—		3	—	8
Other investments	189		282	253	406
TOTAL INTEREST INCOME	15,957		16,328	32,513	32,441
INTEREST EXPENSE:
Interest on deposits	1,732		2,464	3,849	4,750
Interest on short-term borrowings	—		2	7	221
Interest on long-term debt	227		272	481	489
TOTAL INTEREST EXPENSE	1,959		2,738	4,337	5,460
NET INTEREST INCOME	13,998		13,590	28,176	26,981
PROVISION (CREDIT) FOR LOAN LOSSES	16		54	1,189	(51)
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	13,982		13,536	26,987	27,032
NON-INTEREST INCOME:
Fiduciary income	1,201		1,058	2,304	2,092
Service charges and fees on deposit accounts	1,237		1,497	2,532	2,805
Net gains (losses) on sales of debt securities	—		1	221	(17)
Bank owned life insurance income	287		183	888	365
Gains from sales of loans	317		64	437	93
Other operating income	277		195	776	432
TOTAL NON-INTEREST INCOME	3,319		2,998	7,158	5,770
NON-INTEREST EXPENSE:
Salaries and employee benefits	6,648		6,243	13,416	12,405
Equipment expenses	289		278	576	544
Occupancy expense, net	723		744	1,405	1,507
State financial institutions tax	420		436	856	874
Marketing	258		297	435	599
Amortization of intangibles	260		260	520	517
FDIC insurance premiums, net	31		112	30	238
Contracted services	475		475	877	939
Other real estate owned	1		48	(9)	51
Merger-related expenses	—		20	—	87
Other non-interest expense	2,011		1,920	4,082	3,772
TOTAL NON-INTEREST EXPENSE	11,116		10,833	22,188	21,533
INCOME BEFORE INCOME TAXES	6,185		5,701	11,957	11,269
PROVISION FOR INCOME TAXES	1,128		973	1,874	1,914
NET INCOME	$	5,057	4,728	10,083	9,355
Dividends declared per common share	$	0.18	0.17	0.36	0.34
Earnings per common share:
Basic	0.39		0.36	0.78	0.71
Diluted	0.39		0.36	0.78	0.71
Weighted average common shares outstanding:
Basic	12,940,975		13,192,691	12,933,528	13,237,909
Diluted	12,941,001		13,196,665	12,934,158	13,241,752

Contacts

LCNB Corp.

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

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