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													Nine Months Ended
	9/30/2021			6/30/2021			3/31/2021			12/31/2020		9/30/2020		9/30/2021		9/30/2020
Condensed Income Statement
Interest income	$	15,024		$	15,429		$	15,535		15,945		15,322		45,988		47,835
Interest expense	951			1,060			1,163			1,432		1,793		3,174		6,130
Net interest income	14,073			14,369			14,372			14,513		13,529		42,814		41,705
Provision (credit) for loan losses	306			(15)			(52)			(151)		976		239		2,165
Net interest income after provision (credit)	13,767			14,384			14,424			14,664		12,553		42,575		39,540
Non-interest income	4,106			4,314			3,465			4,305		4,278		11,885		11,436
Non-interest expense	12,029			12,208			11,492			11,944		11,653		35,729		33,841
Income before income taxes	5,844			6,490			6,397			7,025		5,178		18,731		17,135
Provision for income taxes	1,027			1,200			1,157			1,283		928		3,384		2,802
Net income	$	4,817		$	5,290		$	5,240		5,742		4,250		15,347		14,333
Amort/Accret income on acquired loans	$	132		$	216		$	249		186		181		597		1,142
Amort/Accret expenses on acquired interest-bearing liabilities	$	—		$	—		$	—		1		—		—		5
Tax-equivalent net interest income	$	14,129		$	14,427		$	14,432		14,577		13,594		42,988		41,914
Per Share Data
Dividends per share	$	0.19		$	0.19		$	0.19		0.19		0.18		0.57		0.54
Basic earnings per common share	$	0.39		$	0.41		$	0.41		0.44		0.33		1.21		1.11
Diluted earnings per common share	$	0.39		$	0.41		$	0.41		0.44		0.33		1.21		1.11
Book value per share	$	19.17		$	18.99		$	18.66		18.73		18.46		19.17		18.46
Tangible book value per share	$	14.28		$	14.15		$	13.87		13.93		13.66		14.28		13.66
Weighted average common shares outstanding:
Basic	12,455,276			12,743,726			12,794,824			12,852,614		12,937,865		12,663,368		12,934,987
Diluted	12,455,276			12,743,726			12,794,852			12,852,657		12,937,901		12,663,378		12,935,388
Shares outstanding at period end	12,434,084			12,634,845			12,820,108			12,858,325		12,926,686		12,434,084		12,926,686
Selected Financial Ratios
Return on average assets	1.02		%	1.15		%	1.20		%	1.31	%	0.97	%	1.12	%	1.13	%
Return on average equity	7.93		%	8.78		%	8.80		%	9.52	%	7.08	%	8.50	%	8.14	%
Return on average tangible common equity	10.62		%	11.76		%	11.81		%	12.83	%	9.56	%	11.39	%	11.07	%
Dividend payout ratio	48.72		%	46.34		%	46.34		%	43.18	%	54.55	%	47.11	%	48.65	%
Net interest margin (tax equivalent)	3.32		%	3.51		%	3.68		%	3.71	%	3.47	%	3.49	%	3.69	%
Efficiency ratio (tax equivalent)	65.96		%	65.14		%	64.21		%	63.26	%	65.20	%	65.11	%	63.43	%
Selected Balance Sheet Items
Cash and cash equivalents	$	23,852		$	22,909		$	41,144		31,730		24,485
Debt and equity securities	352,066			349,199			276,774			248,624		199,044
Loans:
Commercial and industrial	$	91,246		$	97,240		$	107,630		100,254		124,628
Commercial, secured by real estate	862,202			836,085			855,894			843,230		843,943
Residential real estate	343,318			341,447			328,265			309,692		327,689
Consumer	35,349			35,257			35,799			36,917		36,504
Agricultural	8,852			8,765			8,698			10,100		8,920
Other, including deposit overdrafts	247			369			346			363		403
Deferred net origination fees	(1,055)			(1,398)			(1,531)			(1,135)		(1,927)
Loans, gross	1,340,159			1,317,765			1,335,101			1,299,421		1,340,160
Less allowance for loan losses	5,828			5,652			5,679			5,728		5,974
Loans, net	$	1,334,331		$	1,312,113		$	1,329,422		1,293,693		1,334,186

	Three Months Ended													Nine Months Ended
	9/30/2021			6/30/2021			3/31/2021			12/31/2020		9/30/2020		9/30/2021		9/30/2020
Selected Balance Sheet Items, continued
Total earning assets	$	1,695,281		$	1,671,462		$	1,634,818		1,562,392		1,547,538
Total assets	1,884,252			1,856,670			1,818,321			1,745,884		1,725,615
Total deposits	1,603,203			1,577,345			1,537,116			1,455,423		1,430,394
Short-term borrowings	—			—			—			—		—
Long-term debt	15,000			15,000			17,000			22,000		31,999
Total shareholders’ equity	238,419			239,952			239,246			240,825		238,585
Equity to assets ratio	12.65		%	12.92		%	13.16		%	13.79	%	13.83	%
Loans to deposits ratio	83.59		%	83.54		%	86.86		%	89.28	%	93.69	%
Tangible common equity (TCE)	$	177,501		$	178,771		$	177,805		179,127		176,624
Tangible common assets (TCA)	1,823,334			1,795,489			1,756,880			1,684,186		1,663,654
TCE/TCA	9.73		%	9.96		%	10.12		%	10.64	%	10.62	%
Selected Average Balance Sheet Items
Cash and cash equivalents	$	34,557		$	45,414		$	37,269		49,273		42,661		39,021		37,988
Debt and equity securities	356,214			312,596			260,147			218,816		197,788		310,004		195,033
Loans	$	1,321,629		$	1,328,760		$	1,313,803		1,313,892		1,339,608		1,321,426		1,303,770
Less allowance for loan losses	5,567			5,678			5,715			5,920		5,250		5,653		4,730
Net loans	$	1,316,062		$	1,323,082		$	1,308,088		1,307,972		1,334,358		1,315,773		1,299,040
Total earning assets	$	1,688,589		$	1,666,126		$	1,589,582		1,561,392		1,558,886		1,648,461		1,516,967
Total assets	1,879,314			1,852,035			1,775,154			1,742,947		1,741,998		1,835,887		1,695,103
Total deposits	1,595,773			1,570,070			1,488,156			1,447,217		1,445,573		1,551,727		1,401,636
Short-term borrowings	1,320			716			342			—		—		796		497
Long-term debt	15,000			15,571			19,689			30,803		33,020		16,736		35,427
Total shareholders’ equity	240,976			241,651			241,517			239,881		238,990		241,379		235,225
Equity to assets ratio	12.82		%	13.05		%	13.61		%	13.76	%	13.72	%	13.15	%	13.88	%
Loans to deposits ratio	82.82		%	84.63		%	88.28		%	90.79	%	92.67	%	85.16	%	93.02	%
Asset Quality
Net charge-offs (recoveries)	$	130		$	12		$	(3)		95		18		139		236
Other real estate owned	—			—			—			—		—		—		—
Non-accrual loans	2,629			3,338			3,365			3,718		4,110		2,629		4,110
Loans past due 90 days or more and still accruing	13			—			—			—		94		13		94
Total nonperforming loans	$	2,642		$	3,338		$	3,365		3,718		4,204		2,642		4,204
Net charge-offs to average loans	0.04		%	0.00		%	0.00		%	0.03	%	0.01	%	0.01	%	0.02	%
Allowance for loan losses to total loans	0.43		%	0.43		%	0.43		%	0.44	%	0.45	%	0.43	%	0.45	%
Nonperforming loans to total loans	0.20		%	0.25		%	0.25		%	0.29	%	0.31	%	0.20	%	0.31	%
Nonperforming assets to total assets	0.14		%	0.18		%	0.19		%	0.21	%	0.24	%	0.14	%	0.24	%
Assets Under Management
LCNB Corp. total assets	$	1,884,252		$	1,856,670		$	1,818,321		1,745,884		1,725,615
Trust and investments (fair value)	713,936			701,838			673,742			628,414		524,502
Mortgage loans serviced	140,147			126,924			127,290			137,188		120,546
Cash management	72,622			80,177			118,494			116,792		119,520
Brokerage accounts (fair value)	319,495			314,491			299,355			292,953		267,307
Total assets managed	$	3,130,452		$	3,080,100		3,037,202			2,921,231		2,757,490

LCNB CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

(Dollars in thousands)

	September 30, 2021 (Unaudited)		December 31, 2020
ASSETS:
Cash and due from banks	$	20,796	17,383
Interest-bearing demand deposits	3,056		14,347
Total cash and cash equivalents	23,852		31,730
Investment securities:
Equity securities with a readily determinable fair value, at fair value	2,478		2,389
Equity securities without a readily determinable fair value, at cost	2,099		2,099
Debt securities, available-for-sale, at fair value	313,214		209,471
Debt securities, held-to-maturity, at cost	24,420		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	1,334,331		1,293,693
Premises and equipment, net	35,154		35,376
Operating leases right of use asset	6,608		6,274
Goodwill	59,221		59,221
Core deposit and other intangibles	2,671		3,453
Bank owned life insurance	42,954		42,149
Interest receivable	8,624		8,337
Other assets	18,771		17,027
TOTAL ASSETS	$	1,884,252	1,745,884
LIABILITIES:
Deposits:
Noninterest-bearing	$	483,920	455,073
Interest-bearing	1,119,283		1,000,350
Total deposits	1,603,203		1,455,423
Long-term debt	15,000		22,000
Operating lease liabilities	6,693		6,371
Accrued interest and other liabilities	20,937		21,265
TOTAL LIABILITIES	1,645,833		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 14,207,735 and 14,163,904 shares at September 30, 2021 and December 31, 2020, respectively; outstanding 12,434,084 and 12,858,325 shares at September 30, 2021 and December 31, 2020, respectively	142,946		142,443
Retained earnings	123,167		115,058
Treasury shares at cost, 1,773,651 and 1,305,579 shares at September 30, 2021 and December 31, 2020, respectively	(28,590)		(20,719)
Accumulated other comprehensive income, net of taxes	896		4,043
TOTAL SHAREHOLDERS' EQUITY	238,419		240,825
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	1,884,252	1,745,884

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,
	2021		2020	2021	2020
INTEREST INCOME:
Interest and fees on loans	$	13,729	14,379	42,372	44,428
Dividends on equity securities with a readily determinable fair value	12		13	38	40
Dividends on equity securities without a readily determinable fair value	5		5	16	33
Interest on debt securities, taxable	1,027		633	2,650	2,250
Interest on debt securities, non-taxable	214		249	656	788
Other investments	37		43	256	296
TOTAL INTEREST INCOME	15,024		15,322	45,988	47,835
INTEREST EXPENSE:
Interest on deposits	836		1,567	2,809	5,416
Interest on short-term borrowings	2		—	4	7
Interest on long-term debt	113		226	361	707
TOTAL INTEREST EXPENSE	951		1,793	3,174	6,130
NET INTEREST INCOME	14,073		13,529	42,814	41,705
PROVISION FOR LOAN LOSSES	306		976	239	2,165
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	13,767		12,553	42,575	39,540
NON-INTEREST INCOME:
Fiduciary income	1,695		1,275	4,959	3,579
Service charges and fees on deposit accounts	1,621		1,506	4,506	4,038
Net gains on sales of debt securities, available-for-sale	—		—	—	221
Bank owned life insurance income	269		275	805	1,163
Gains from sales of loans	366		999	560	1,436
Other operating income	155		223	1,055	999
TOTAL NON-INTEREST INCOME	4,106		4,278	11,885	11,436
NON-INTEREST EXPENSE:
Salaries and employee benefits	7,096		6,863	20,640	20,279
Equipment expenses	421		341	1,232	917
Occupancy expense, net	713		740	2,236	2,145
State financial institutions tax	437		424	1,318	1,280
Marketing	253		471	878	906
Amortization of intangibles	263		263	780	783
FDIC insurance premiums, net	129		112	365	142
Contracted services	655		435	1,818	1,312
Other non-interest expense	2,062		2,004	6,462	6,077
TOTAL NON-INTEREST EXPENSE	12,029		11,653	35,729	33,841
INCOME BEFORE INCOME TAXES	5,844		5,178	18,731	17,135
PROVISION FOR INCOME TAXES	1,027		928	3,384	2,802
NET INCOME	$	4,817	4,250	15,347	14,333
Dividends declared per common share	$	0.19	0.18	0.57	0.54
Earnings per common share:
Basic	0.39		0.33	1.21	1.11
Diluted	0.39		0.33	1.21	1.11
Weighted average common shares outstanding:
Basic	12,455,276		12,937,865	12,663,368	12,934,987
Diluted	12,455,276		12,937,901	12,663,378	12,935,388