LCNB (LCNB) 8-K Results of Operations and Financial Condition

Exhibit 99.2

LCNB Corp. and Subsidiaries

Financial Highlights

(Dollars in thousands, except per share amounts)

(Unaudited)

	Three Months Ended												Year Ended
	12/31/2020			9/30/2020			6/30/2020		3/31/2020		12/31/2019		12/31/2020		12/31/2019
Condensed Income Statement
Interest income	$	15,945		15,322			15,957		16,556		16,424		63,780		65,194
Interest expense	1,432			1,793			1,959		2,378		2,577		7,562		10,788
Net interest income	14,513			13,529			13,998		14,178		13,847		56,218		54,406
Provision (credit) for loan losses	(151)			976			16		1,173		(6)		2,014		207
Net interest income after provision	14,664			12,553			13,982		13,005		13,853		54,204		54,199
Non-interest income	4,305			4,278			3,319		3,839		3,222		15,741		12,348
Non-interest expense	11,944			11,653			11,116		11,072		11,007		45,785		43,522
Income before income taxes	7,025			5,178			6,185		5,772		6,068		24,160		23,025
Provision for income taxes	1,283			928			1,128		746		1,238		4,085		4,113
Net income	$	5,742		4,250			5,057		5,026		4,830		20,075		18,912
Amort/Accret income on acquired loans	$	186					294		667		400		1,328		1,281
Amort/Accret expenses on acquired interest-bearing liabilities	$	1		—			2		3		3		6		293
Tax-equivalent net interest income	$	14,577		13,594			14,066		14,254		13,937		56,491		54,852
Per Share Data
Dividends per share	$	0.19		0.18			0.18		0.18		0.18		0.73		0.69
Basic earnings per common share	$	0.44		0.33			0.39		0.39		0.37		1.55		1.44
Diluted earnings per common share	$	0.44		0.33			0.39		0.39		0.37		1.55		1.44
Book value per share	$	18.73		18.46			18.27		18.00		17.63		18.73		17.63
Tangible book value per share	$	13.93		13.66			13.47		13.18		12.78		13.93		12.78
Weighted average common shares outstanding:
Basic	12,852,614			12,937,865			12,940,975		12,926,077		12,912,106		12,914,277		13,078,920
Diluted	12,852,657			12,937,901			12,941,001		12,927,666		12,916,000		12,914,584		13,082,893
Shares outstanding at period end	12,858,325			12,926,686			12,975,879		12,969,076		12,936,783		12,858,325		12,936,783
Selected Financial Ratios
Return on average assets	1.31		%	0.97		%	1.19	%	1.23	%	1.17	%	1.18	%	1.15	%
Return on average equity	9.52		%	7.08		%	8.63	%	8.75	%	8.42	%	8.49	%	8.42	%
Return on average tangible equity	12.83		%	9.56		%	11.74	%	12.00	%	11.63	%	11.53	%	11.72	%
Dividend payout ratio	43.18		%	54.55		%	46.15	%	46.15	%	48.65	%	47.10	%	47.92	%
Net interest margin (tax equivalent)	3.71		%	3.47		%	3.70	%	3.92	%	3.76	%	3.70	%	3.71	%
Efficiency ratio (tax equivalent)	63.26		%	65.20		%	63.94	%	61.19	%	64.15	%	63.39	%	64.76	%
Selected Balance Sheet Items
Cash and cash equivalents	$	31,730		$	24,485		42,736		24,795		20,765
Debt and equity securities	248,624			199,044			194,883		183,123		219,791
Loans:
Commercial and industrial	$	100,254		$	124,628		125,492		85,356		78,306
Commercial, secured by real estate	843,230			843,943			833,286		829,461		804,953
Residential real estate	309,692			327,689			334,349		318,009		322,533
Consumer	36,917			36,504			32,859		28,955		25,232
Agricultural	10,100			8,920			11,071		10,519		11,509
Other, including deposit overdrafts	363			403			283		436		1,193
Deferred net origination fees	(1,135)			(1,927)			(1,902)		(349)		(275)
Loans, gross	1,299,421			1,340,160			1,335,438		1,272,387		1,243,451
Less allowance for loan losses	5,728			5,974			5,016		5,008		4,045
Loans, net	$	1,293,693		1,334,186			1,330,422		1,267,379		1,239,406
Total earning assets	$	1,562,392		1,547,538			1,554,537		1,462,485		1,466,988
Total assets	1,745,884			1,725,615			1,735,332		1,636,280		1,639,308
Total deposits	1,455,423			1,430,394			1,438,921		1,345,872		1,348,280

	Three Months Ended											Year Ended
	12/31/2020			9/30/2020		6/30/2020		3/31/2020		12/31/2019		12/31/2020		12/31/2019
Selected Balance Sheet Items, continued
Long-term debt	22,000			31,999		33,998		35,996		40,994
Total shareholders’ equity	240,825			238,585		237,047		233,478		228,048
Equity to assets ratio	13.79		%	13.83	%	13.66	%	14.27	%	13.91	%
Loans to deposits ratio	89.28		%	93.69	%	92.81	%	94.54	%	92.22	%
Tangible common equity (TCE)	$	179,127		176,624		174,823		170,994		165,304
Tangible common assets (TCA)	1,684,186			1,663,654		1,673,108		1,573,796		1,576,564
TCE/TCA	10.64		%	10.62	%	10.45	%	10.87	%	10.49	%
Selected Average Balance Sheet Items
Cash and cash equivalents	$	49,273		42,661		46,292		25,101		26,501		40,825		27,321
Debt and equity securities	218,816			197,788		182,371		204,912		231,115		201,012		247,569
Loans	$	1,313,892		1,339,608		1,318,753		1,252,554		1,230,845		1,306,314		1,221,375
Less allowance for loan losses	5,920			5,250		4,998		3,938		4,076		5,029		4,056
Net loans	$	1,307,972		1,334,358		1,313,755		1,248,616		1,226,769		1,301,285		1,217,319
Total earning assets	$	1,561,392		1,558,886		1,528,610		1,462,946		1,469,469		1,528,134		1,477,333
Total assets	1,742,947			1,741,998		1,704,303		1,638,486		1,643,793		1,706,924		1,642,591
Total deposits	1,447,217			1,445,573		1,412,082		1,346,770		1,352,101		1,413,093		1,351,036
Short-term borrowings	—			—		82		1,415		622		372		6,064
Long-term debt	30,803			33,020		34,964		38,325		41,742		34,265		42,733
Total shareholders’ equity	239,881			238,990		235,587		231,058		227,595		236,396		224,639
Equity to assets ratio	13.76		%	13.72	%	13.82	%	14.10	%	13.85	%	13.85	%	13.62	%
Loans to deposits ratio	90.79		%	92.67	%	93.39	%	93.00	%	91.03	%	92.44	%	90.19	%
Asset Quality
Net charge-offs	$	95		18		8		210		115		331		207
Other real estate owned	—			—		—		—		197		—		197
Non-accrual loans	3,718			4,110		3,876		2,829		3,210		3,718		3,210
Loans past due 90 days or more and still accruing	—			94		38		39		—		—		—
Total nonperforming loans	$	3,718		4,204		3,914		2,868		3,210		3,718		3,210
Net charge-offs to average loans	0.03		%	0.01	%	0.00	%	0.07	%	0.04	%	0.03	%	0.02	%
Allowance for loan losses to total loans	0.44		%	0.45	%	0.38	%	0.39	%	0.33	%	0.44	%	0.33	%
Nonperforming loans to total loans	0.29		%	0.31	%	0.29	%	0.23	%	0.26	%	0.29	%	0.26	%
Nonperforming assets to total assets	0.21		%	0.24	%	0.23	%	0.18	%	0.21	%	0.21	%	0.21	%
Assets Under Management
LCNB Corp. total assets	$	1,745,884		1,725,615		1,735,332		1,636,280		1,639,308
Trust and investments (fair value)	628,414			524,502		516,076		455,974		435,664
Mortgage loans serviced	137,188			120,546		100,189		94,805		93,596
Cash management	116,792			119,520		116,615		77,471		75,948
Brokerage accounts (fair value)	292,953			267,307		255,276		235,278		268,059
Total assets managed	$	2,921,231		2,757,490		2,723,488		2,499,808		2,512,575

LCNB CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

(Dollars in thousands)

	December 31, 2020 (Unaudited)		December 31, 2019
ASSETS:
Cash and due from banks	$	17,383	17,019
Interest-bearing demand deposits	14,347		3,746
Total cash and cash equivalents	31,730		20,765
Investment securities:
Equity securities with a readily determinable fair value, at fair value	2,389		2,312
Equity securities without a readily determinable fair value, at cost	2,099		2,099
Debt securities, available-for-sale, at fair value	209,471		178,000
Debt securities, held-to-maturity, at cost	24,810		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	1,293,693		1,239,406
Premises and equipment, net	35,376		34,787
Operating leases right of use asset	6,274		5,444
Goodwill	59,221		59,221
Core deposit and other intangibles	3,453		4,006
Bank owned life insurance	42,149		41,667
Interest receivable	8,337		3,926
Other assets	17,027		10,295
TOTAL ASSETS	$	1,745,884	1,639,308
LIABILITIES:
Deposits:
Noninterest-bearing	$	455,073	354,391
Interest-bearing	1,000,350		993,889
Total deposits	1,455,423		1,348,280
Long-term debt	22,000		40,994
Operating lease liabilities	6,371		5,446
Accrued interest and other liabilities	21,265		16,540
TOTAL LIABILITIES	1,505,059		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 14,090,038 and 14,111,810 shares at December 31, 2020 and 2019, respectively; outstanding 12,858,325 and 12,936,783 shares at December 31, 2020 and 2019, respectively	142,443		141,791
Retained earnings	115,058		104,431
Treasury shares at cost, 1,231,713 and 1,175,027 shares at December 31,2020 and 2019, respectively	(20,719)		(18,847)
Accumulated other comprehensive income, net of taxes	4,043		673
TOTAL SHAREHOLDERS' EQUITY	240,825		228,048
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	1,745,884	1,639,308

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,
	2020		2019	2020	2019
INTEREST INCOME:
Interest and fees on loans	$	14,839	14,937	59,267	59,009
Dividends on equity securities with a readily determinable fair value	14		15	54	62
Dividends on equity securities without a readily determinable fair value	4		17	37	65
Interest on debt securities, taxable	666		881	2,916	3,601
Interest on debt securities, non-taxable	239		337	1,027	1,677
Interest on interest-bearing time deposits	—		—	—	11
Other investments	183		237	479	769
TOTAL INTEREST INCOME	15,945		16,424	63,780	65,194
INTEREST EXPENSE:
Interest on deposits	1,218		2,301	6,634	9,526
Interest on short-term borrowings	—		3	7	227
Interest on long-term debt	214		273	921	1,035
TOTAL INTEREST EXPENSE	1,432		2,577	7,562	10,788
NET INTEREST INCOME	14,513		13,847	56,218	54,406
PROVISION (CREDIT) FOR LOAN LOSSES	(151)		(6)	2,014	207
NET INTEREST INCOME AFTER PROVISION (CREDIT) FOR LOAN LOSSES	14,664		13,853	54,204	54,199
NON-INTEREST INCOME:
Fiduciary income	1,430		1,139	5,009	4,354
Service charges and fees on deposit accounts	1,444		1,454	5,482	5,875
Net gains (losses) on sales of debt securities	—		(4)	221	(41)
Bank owned life insurance income	278		289	1,441	943
Gains from sales of loans	861		121	2,297	328
Other operating income	292		223	1,291	889
TOTAL NON-INTEREST INCOME	4,305		3,222	15,741	12,348
NON-INTEREST EXPENSE:
Salaries and employee benefits	6,899		6,512	27,178	25,320
Equipment expenses	460		343	1,377	1,209
Occupancy expense, net	730		703	2,875	2,961
State financial institutions tax	428		362	1,708	1,669
Marketing	348		310	1,254	1,319
Amortization of intangibles	263		263	1,046	1,043
FDIC insurance premiums, net	114		—	256	225
Contracted services	509		471	1,821	1,865
Merger-related expenses	—		—	—	114
Other non-interest expense	2,193		2,043	8,270	7,797
TOTAL NON-INTEREST EXPENSE	11,944		11,007	45,785	43,522
INCOME BEFORE INCOME TAXES	7,025		6,068	24,160	23,025
PROVISION FOR INCOME TAXES	1,283		1,238	4,085	4,113
NET INCOME	$	5,742	4,830	20,075	18,912
Dividends declared per common share	$	0.19	0.18	0.73	0.69
Earnings per common share:
Basic	0.44		0.37	1.55	1.44
Diluted	0.44		0.37	1.55	1.44
Weighted average common shares outstanding:
Basic	12,852,614		12,912,106	12,914,277	13,078,920
Diluted	12,852,657		12,916,000	12,914,584	13,082,893