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															Nine Months Ended
	9/30/2020			6/30/2020		3/31/2020		12/31/2019		9/30/2019		9/30/2020		9/30/2019
Condensed Income Statement
Interest income	$	15,322		15,957		16,556		16,424		16,329		47,835		48,770
Interest expense	1,793			1,959		2,378		2,577		2,751		6,130		8,211
Net interest income	13,529			13,998		14,178		13,847		13,578		41,705		40,559
Provision (credit) for loan losses	976			16		1,173		(6)		264		2,165		213
Net interest income after provision	12,553			13,982		13,005		13,853		13,314		39,540		40,346
Non-interest income	4,278			3,319		3,839		3,222		3,356		11,436		9,126
Non-interest expense	11,653			11,116		11,072		11,007		10,982		33,841		32,515
Income before income taxes	5,178			6,185		5,772		6,068		5,688		17,135		16,957
Provision for income taxes	928			1,128		746		1,238		961		2,802		2,875
Net income	$	4,250		5,057		5,026		4,830		4,727		14,333		14,082
Amort/Accret income on acquired loans	$	181		294		667		400		302		1,142		881
Amort/Accret expenses on acquired interest-bearing liabilities	$	—		2		3		3		4		5		290
Tax-equivalent net interest income	$	13,594		14,066		14,254		13,937		13,679		41,914		40,915
Per Share Data
Dividends per share	$	0.18		0.18		0.18		0.18		0.17		0.54		0.51
Basic earnings per common share	$	0.33		0.39		0.39		0.37		0.36		1.11		1.07
Diluted earnings per common share	$	0.33		0.39		0.39		0.37		0.36		1.11		1.07
Book value per share	$	18.46		18.27		18.00		17.63		17.44		18.46		17.44
Tangible book value per share	$	13.66		13.47		13.18		12.78		12.57		13.66		12.57
Weighted average common shares outstanding:
Basic	12,937,865			12,940,975		12,926,077		12,912,106		12,932,950		12,934,987		13,135,134
Diluted	12,937,901			12,941,001		12,927,666		12,916,000		12,937,145		12,935,388		13,139,100
Shares outstanding at period end	12,926,686			12,975,879		12,969,076		12,936,783		12,927,463		12,926,686		12,927,463
Selected Financial Ratios
Return on average assets	0.97		%	1.19	%	1.23	%	1.17	%	1.13	%	1.13	%	1.15	%
Return on average equity	7.08		%	8.63	%	8.75	%	8.42	%	8.33	%	8.14	%	8.42	%
Return on average tangible equity	9.56		%	11.74	%	12.00	%	11.63	%	11.57	%	11.07	%	11.75	%
Dividend payout ratio	54.55		%	46.15	%	46.15	%	48.65	%	47.22	%	48.65	%	47.66	%
Net interest margin (tax equivalent)	3.47		%	3.70	%	3.92	%	3.76	%	3.67	%	3.69	%	3.70	%
Efficiency ratio (tax equivalent)	65.20		%	63.94	%	61.19	%	64.15	%	64.47	%	63.43	%	64.98	%
Selected Balance Sheet Items
Cash and cash equivalents	$	24,485		42,736		24,795		20,765		22,826
Debt and equity securities	199,044			194,883		183,123		219,791		239,730
Loans:
Commercial and industrial	$	124,628		125,492		85,356		78,306		71,576
Commercial, secured by real estate	843,943			833,286		829,461		804,953		797,842
Residential real estate	327,689			334,349		318,009		322,533		320,703
Consumer	36,504			32,859		28,955		25,232		23,918
Agricultural	8,920			11,071		10,519		11,509		11,525
Other, including deposit overdrafts	403			283		436		1,193		456
Deferred net origination fees	(1,927)			(1,902)		(349)		(275)		(128)
Loans, gross	1,340,160			1,335,438		1,272,387		1,243,451		1,225,892
Less allowance for loan losses	5,974			5,016		5,008		4,045		4,167
Loans, net	$	1,334,186		1,330,422		1,267,379		1,239,406		1,221,725
Total earning assets	$	1,547,538		1,554,537		1,462,485		1,466,988		1,470,074
Total assets	1,725,615			1,735,332		1,636,280		1,639,308		1,644,447
Total deposits	1,430,394			1,438,921		1,345,872		1,348,280		1,355,383

	Three Months Ended															Nine Months Ended
	9/30/2020			6/30/2020		3/31/2020		12/31/2019		9/30/2019		9/30/2020		9/30/2019
Selected Balance Sheet Items, continued
Long-term debt	31,999			33,998		35,996		40,994		41,990
Total shareholders’ equity	238,585			237,047		233,478		228,048		225,492
Equity to assets ratio	13.83		%	13.66	%	14.27	%	13.91	%	13.71	%
Loans to deposits ratio	93.69		%	92.81	%	94.54	%	92.22	%	90.45	%
Tangible common equity (TCE)	$	176,624		174,823		170,994		165,304		162,485
Tangible common assets (TCA)	1,663,654			1,673,108		1,573,796		1,576,564		1,581,440
TCE/TCA	10.62		%	10.45	%	10.87	%	10.49	%	10.27	%
Selected Average Balance Sheet Items
Cash and cash equivalents	$	42,661		46,292		25,101		26,501		28,293		37,988		27,600
Debt and equity securities	197,788			182,371		204,912		231,115		243,553		195,033		253,113
Loans	$	1,339,608		1,318,753		1,252,554		1,230,845		1,227,806		1,303,770		1,218,183
Less allowance for loan losses	5,250			4,998		3,938		4,076		3,986		4,730		4,049
Net loans	$	1,334,358		1,313,755		1,248,616		1,226,769		1,223,820		1,299,040		1,214,134
Total earning assets	$	1,558,886		1,528,610		1,462,946		1,469,469		1,480,096		1,516,967		1,479,983
Total assets	1,741,998			1,704,303		1,638,486		1,643,793		1,654,034		1,695,103		1,642,186
Total deposits	1,445,573			1,412,082		1,346,770		1,352,101		1,365,702		1,401,636		1,350,678
Short-term borrowings	0			82		1,415		622		468		497		7,898
Long-term debt	33,020			34,964		38,325		41,742		41,988		35,427		43,067
Total shareholders’ equity	238,990			235,587		231,058		227,595		225,216		235,225		223,644
Equity to assets ratio	13.72		%	13.82	%	14.10	%	13.85	%	13.62	%	13.88	%	13.62	%
Loans to deposits ratio	92.67		%	93.39	%	93.00	%	91.03	%	89.90	%	93.02	%	90.19	%
Asset Quality
Net charge-offs	$	18		8		210		115		209		236		92
Other real estate owned	—			—		—		197		197		—		197
Non-accrual loans	4,110			3,876		2,829		3,210		3,523		4,110		3,523
Loans past due 90 days or more and still accruing	94			38		39		—		—		94		—
Total nonperforming loans	$	4,204		3,914		2,868		3,210		3,523		4,204		3,523
Net charge-offs to average loans	0.01		%	0.00	%	0.07	%	0.04	%	0.07	%	0.02	%	0.01	%
Allowance for loan losses to total loans	0.45		%	0.38	%	0.39	%	0.33	%	0.34	%	0.45	%	0.34	%
Nonperforming loans to total loans	0.31		%	0.29	%	0.23	%	0.26	%	0.29	%	0.31	%	0.29	%
Nonperforming assets to total assets	0.24		%	0.23	%	0.18	%	0.21	%	0.23	%	0.24	%	0.23	%
Assets Under Management
LCNB Corp. total assets	$	1,725,615		1,735,332		1,636,280		1,639,308		1,644,447
Trust and investments (fair value)	524,502			516,076		455,974		435,664		411,724
Mortgage loans serviced	120,546			100,189		94,805		93,596		90,784
Cash management	119,520			116,615		77,471		75,948		117,530
Brokerage accounts (fair value)	267,307			255,276		235,278		268,059		262,038
Total assets managed	$	2,757,490		2,723,488		2,499,808		2,512,575		2,526,523

LCNB CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

(Dollars in thousands)

	September 30, 2020 (Unaudited)		December 31, 2019
ASSETS:
Cash and due from banks	$	16,151	17,019
Interest-bearing demand deposits	8,334		3,746
Total cash and cash equivalents	24,485		20,765
Investment securities:
Equity securities with a readily determinable fair value, at fair value	2,213		2,312
Equity securities without a readily determinable fair value, at cost	2,099		2,099
Debt securities, available-for-sale, at fair value	157,936		178,000
Debt securities, held-to-maturity, at cost	26,941		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	1,334,186		1,239,406
Premises and equipment, net	35,309		34,787
Operating leases right of use asset	5,729		5,444
Goodwill	59,221		59,221
Core deposit and other intangibles	3,539		4,006
Bank owned life insurance	41,871		41,667
Interest receivable	9,559		3,926
Other assets	12,672		10,295
TOTAL ASSETS	$	1,725,615	1,639,308
LIABILITIES:
Deposits:
Noninterest-bearing	$	426,989	354,391
Interest-bearing	1,003,405		993,889
Total deposits	1,430,394		1,348,280
Long-term debt	31,999		40,994
Operating lease liabilities	5,790		5,446
Accrued interest and other liabilities	18,847		16,540
TOTAL LIABILITIES	1,487,030		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; issued 14,157,303 and 14,111,810 shares at September 30, 2020 and December 31, 2019, respectively; outstanding 12,926,686 and 12,936,783 shares at September 30, 2020 and December 31, 2019, respectively	142,310		141,791
Retained earnings	111,760		104,431
Treasury shares at cost, 1,230,617 and 1,175,027 shares at September 30, 2020 and December 31, 2019, respectively	(19,639)		(18,847)
Accumulated other comprehensive income, net of taxes	4,154		673
TOTAL SHAREHOLDERS' EQUITY	238,585		228,048
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	1,725,615	1,639,308

LCNB CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)

	Three Months Ended September 30,				Nine Months Ended  September 30,
	2020		2019	2020	2019
INTEREST INCOME:
Interest and fees on loans	$	14,379	14,872	44,428	44,072
Dividends on equity securities with a readily determinable fair value	13		15	40	47
Dividends on equity securities without a readily determinable fair value	5		16	33	48
Interest on debt securities, taxable	633		918	2,250	2,720
Interest on debt securities, non-taxable	249		379	788	1,340
Interest on interest-bearing time deposits	—		3	—	11
Other investments	43		126	296	532
TOTAL INTEREST INCOME	15,322		16,329	47,835	48,770
INTEREST EXPENSE:
Interest on deposits	1,567		2,475	5,416	7,225
Interest on short-term borrowings	—		3	7	224
Interest on long-term debt	226		273	707	762
TOTAL INTEREST EXPENSE	1,793		2,751	6,130	8,211
NET INTEREST INCOME	13,529		13,578	41,705	40,559
PROVISION FOR LOAN LOSSES	976		264	2,165	213
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	12,553		13,314	39,540	40,346
NON-INTEREST INCOME:
Fiduciary income	1,275		1,123	3,579	3,215
Service charges and fees on deposit accounts	1,506		1,616	4,038	4,421
Net gains (losses) on sales of debt securities	—		(20)	221	(37)
Bank owned life insurance income	275		289	1,163	654
Gains from sales of loans	999		114	1,436	207
Other operating income	223		234	999	666
TOTAL NON-INTEREST INCOME	4,278		3,356	11,436	9,126
NON-INTEREST EXPENSE:
Salaries and employee benefits	6,863		6,403	20,279	18,808
Equipment expenses	341		322	917	866
Occupancy expense, net	740		751	2,145	2,258
State financial institutions tax	424		433	1,280	1,307
Marketing	471		410	906	1,009
Amortization of intangibles	263		263	783	780
FDIC insurance premiums, net	112		(13)	142	225
Contracted services	435		455	1,312	1,394
Other real estate owned	2		1	(7)	52
Merger-related expenses	—		27	—	114
Other non-interest expense	2,002		1,930	6,084	5,702
TOTAL NON-INTEREST EXPENSE	11,653		10,982	33,841	32,515
INCOME BEFORE INCOME TAXES	5,178		5,688	17,135	16,957
PROVISION FOR INCOME TAXES	928		961	2,802	2,875
NET INCOME	$	4,250	4,727	14,333	14,082
Dividends declared per common share	$	0.18	0.17	0.54	0.51
Earnings per common share:
Basic	0.33		0.36	1.11	1.07
Diluted	0.33		0.36	1.11	1.07
Weighted average common shares outstanding:
Basic	12,937,865		12,932,950	12,934,987	13,135,134
Diluted	12,937,901		12,937,145	12,935,388	13,139,100

Contacts

LCNB Corp.

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

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