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
	3/31/2021			12/31/2020		9/30/2020		6/30/2020		3/31/2020
Condensed Income Statement
Interest income	$	15,535		15,945		15,322		15,957		16,556
Interest expense	1,163			1,432		1,793		1,959		2,378
Net interest income	14,372			14,513		13,529		13,998		14,178
Provision (credit) for loan losses	(52)			(151)		976		16		1,173
Net interest income after provision	14,424			14,664		12,553		13,982		13,005
Non-interest income	3,465			4,305		4,278		3,319		3,839
Non-interest expense	11,492			11,944		11,653		11,116		11,072
Income before income taxes	6,397			7,025		5,178		6,185		5,772
Provision for income taxes	1,157			1,283		928		1,128		746
Net income	$	5,240		5,742		4,250		5,057		5,026
Amort/Accret income on acquired loans	$	249		186		181		294		667
Amort/Accret expenses on acquired interest-bearing liabilities	$	—		1		—		2		3
Tax-equivalent net interest income	$	14,432		14,577		13,594		14,066		14,254
Per Share Data
Dividends per share	$	0.19		0.19		0.18		0.18		0.18
Basic earnings per common share	$	0.41		0.44		0.33		0.39		0.39
Diluted earnings per common share	$	0.41		0.44		0.33		0.39		0.39
Book value per share	$	18.66		18.73		18.46		18.27		18.00
Tangible book value per share	$	13.87		13.93		13.66		13.47		13.18
Weighted average common shares outstanding:
Basic	12,794,824			12,852,614		12,937,865		12,940,975		12,926,077
Diluted	12,794,852			12,852,657		12,937,901		12,941,001		12,927,666
Shares outstanding at period end	12,820,108			12,858,325		12,926,686		12,975,879		12,969,076
Selected Financial Ratios
Return on average assets	1.20		%	1.31	%	0.97	%	1.19	%	1.23	%
Return on average equity	8.80		%	9.52	%	7.08	%	8.63	%	8.75	%
Return on average tangible equity	11.81		%	12.83	%	9.56	%	11.74	%	12.00	%
Dividend payout ratio	46.34		%	43.18	%	54.55	%	46.15	%	46.15	%
Net interest margin (tax equivalent)	3.68		%	3.71	%	3.47	%	3.70	%	3.92	%
Efficiency ratio (tax equivalent)	64.21		%	63.26	%	65.20	%	63.94	%	61.19	%
Selected Balance Sheet Items
Cash and cash equivalents	$	41,144		31,730		24,485		42,736		24,795
Debt and equity securities	276,774			248,624		199,044		194,883		183,123
Loans:
Commercial and industrial	$	107,630		100,254		124,628		125,492		85,356
Commercial, secured by real estate	855,894			843,230		843,943		833,286		829,461
Residential real estate	328,265			309,692		327,689		334,349		318,009
Consumer	35,799			36,917		36,504		32,859		28,955
Agricultural	8,698			10,100		8,920		11,071		10,519
Other, including deposit overdrafts	346			363		403		283		436
Deferred net origination fees	(1,531)			(1,135)		(1,927)		(1,902)		(349)
Loans, gross	1,335,101			1,299,421		1,340,160		1,335,438		1,272,387
Less allowance for loan losses	5,679			5,728		5,974		5,016		5,008
Loans, net	$	1,329,422		1,293,693		1,334,186		1,330,422		1,267,379
Total earning assets	$	1,634,818		1,562,392		1,547,538		1,554,537		1,462,485
Total assets	1,818,321			1,745,884		1,725,615		1,735,332		1,636,280
Total deposits	1,537,116			1,455,423		1,430,394		1,438,921		1,345,872

	Three Months Ended
	3/31/2021			12/31/2020		9/30/2020		6/30/2020		3/31/2020
Selected Balance Sheet Items, continued
Long-term debt	17,000			22,000		31,999		33,998		35,996
Total shareholders’ equity	239,246			240,825		238,585		237,047		233,478
Equity to assets ratio	13.16		%	13.79	%	13.83	%	13.66	%	14.27	%
Loans to deposits ratio	86.86		%	89.28	%	93.69	%	92.81	%	94.54	%
Tangible common equity (TCE)	$	177,805		179,127		176,624		174,823		170,994
Tangible common assets (TCA)	1,756,880			1,684,186		1,663,654		1,673,108		1,573,796
TCE/TCA	10.12		%	10.64	%	10.62	%	10.45	%	10.87	%
Selected Average Balance Sheet Items
Cash and cash equivalents	$	37,269		49,273		42,661		46,292		25,101
Debt and equity securities	260,147			218,816		197,788		182,371		204,912
Loans	$	1,313,803		1,313,892		1,339,608		1,318,753		1,252,554
Less allowance for loan losses	5,715			5,920		5,250		4,998		3,938
Net loans	$	1,308,088		1,307,972		1,334,358		1,313,755		1,248,616
Total earning assets	$	1,589,582		1,561,392		1,558,886		1,528,610		1,462,946
Total assets	1,775,154			1,742,947		1,741,998		1,704,303		1,638,486
Total deposits	1,488,156			1,447,217		1,445,573		1,412,082		1,346,770
Short-term borrowings	342			—		—		82		1,415
Long-term debt	19,689			30,803		33,020		34,964		38,325
Total shareholders’ equity	241,517			239,881		238,990		235,587		231,058
Equity to assets ratio	13.61		%	13.76	%	13.72	%	13.82	%	14.10	%
Loans to deposits ratio	88.28		%	90.79	%	92.67	%	93.39	%	93.00	%
Asset Quality
Net charge-offs (recoveries)	$	(3)		95		18		8		210
Other real estate owned	—			—		—		—		—
Non-accrual loans	3,365			3,718		4,110		3,876		2,829
Loans past due 90 days or more and still accruing	—			—		94		38		39
Total nonperforming loans	$	3,365		3,718		4,204		3,914		2,868
Net charge-offs to average loans	0.00		%	0.03	%	0.01	%	0.00	%	0.07	%
Allowance for loan losses to total loans	0.43		%	0.44	%	0.45	%	0.38	%	0.39	%
Nonperforming loans to total loans	0.25		%	0.29	%	0.31	%	0.29	%	0.23	%
Nonperforming assets to total assets	0.19		%	0.21	%	0.24	%	0.23	%	0.18	%
Assets Under Management
LCNB Corp. total assets	$	1,818,321		1,745,884		1,725,615		1,735,332		1,636,280
Trust and investments (fair value)	673,742			628,414		524,502		516,076		455,974
Mortgage loans serviced	127,290			137,188		120,546		100,189		94,805
Cash management	118,494			116,792		119,520		116,615		77,471
Brokerage accounts (fair value)	299,355			292,953		267,307		255,276		235,278
Total assets managed	$	3,037,202		2,921,231		2,757,490		2,723,488		2,499,808

LCNB CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

(Dollars in thousands)

	March 31, 2021 (Unaudited)		December 31, 2020
ASSETS:
Cash and due from banks	$	18,201	17,383
Interest-bearing demand deposits	22,943		14,347
Total cash and cash equivalents	41,144		31,730
Investment securities:
Equity securities with a readily determinable fair value, at fair value	2,506		2,389
Equity securities without a readily determinable fair value, at cost	2,099		2,099
Debt securities, available-for-sale, at fair value	237,619		209,471
Debt securities, held-to-maturity, at cost	24,695		24,810
Federal Reserve Bank stock, at cost	4,652		4,652
Federal Home Loan Bank stock, at cost	5,203		5,203
Loans, net	1,329,422		1,293,693
Premises and equipment, net	35,243		35,376
Operating leases right of use asset	6,865		6,274
Goodwill	59,221		59,221
Core deposit and other intangibles	3,108		3,453
Bank owned life insurance	42,416		42,149
Interest receivable	8,665		8,337
Other assets	15,463		17,027
TOTAL ASSETS	$	1,818,321	1,745,884
LIABILITIES:
Deposits:
Noninterest-bearing	$	475,127	455,073
Interest-bearing	1,061,989		1,000,350
Total deposits	1,537,116		1,455,423
Long-term debt	17,000		22,000
Operating lease liabilities	6,998		6,371
Accrued interest and other liabilities	17,961		21,265
TOTAL LIABILITIES	1,579,075		1,505,059
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 14,196,008 and 14,163,904 shares at March 31, 2021 and December 31, 2020, respectively; outstanding 12,820,108 and 12,858,325 shares at March 31, 2021 and December 31, 2020, respectively	142,639		142,443
Retained earnings	117,863		115,058
Treasury shares at cost, 1,375,900 and 1,305,579 shares at March 31, 2021 and December 31, 2020, respectively	(21,859)		(20,719)
Accumulated other comprehensive income, net of taxes	603		4,043
TOTAL SHAREHOLDERS' EQUITY	239,246		240,825
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	1,818,321	1,745,884

LCNB CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)

	Three Months Ended March 31,
	2021		2020
INTEREST INCOME:
Interest and fees on loans	$	14,535	15,227
Dividends on equity securities with a readily determinable fair value	13		14
Dividends on equity securities without a readily determinable fair value	6		16
Interest on debt securities, taxable	718		950
Interest on debt securities, non-taxable	224		285
Other investments	39		64
TOTAL INTEREST INCOME	15,535		16,556
INTEREST EXPENSE:
Interest on deposits	1,028		2,117
Interest on short-term borrowings	1		7
Interest on long-term debt	134		254
TOTAL INTEREST EXPENSE	1,163		2,378
NET INTEREST INCOME	14,372		14,178
PROVISION (CREDIT) FOR LOAN LOSSES	(52)		1,173
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	14,424		13,005
NON-INTEREST INCOME:
Fiduciary income	1,529		1,103
Service charges and fees on deposit accounts	1,366		1,295
Net gains on sales of debt securities	—		221
Bank owned life insurance income	267		601
Gains from sales of loans	43		120
Other operating income	260		499
TOTAL NON-INTEREST INCOME	3,465		3,839
NON-INTEREST EXPENSE:
Salaries and employee benefits	6,433		6,768
Equipment expenses	368		287
Occupancy expense, net	794		682
State financial institutions tax	444		436
Marketing	268		177
Amortization of intangibles	257		260
FDIC insurance premiums (credit), net	113		(1)
Contracted services	540		402
Other non-interest expense	2,275		2,061
TOTAL NON-INTEREST EXPENSE	11,492		11,072
INCOME BEFORE INCOME TAXES	6,397		5,772
PROVISION FOR INCOME TAXES	1,157		746
NET INCOME	$	5,240	5,026
Dividends declared per common share	$	0.19	0.18
Earnings per common share:
Basic	0.41		0.39
Diluted	0.41		0.39
Weighted average common shares outstanding:
Basic	12,794,824		12,926,077
Diluted	12,794,852		12,927,666