LCNB (LCNB) 8-K LCNB Corp. Reports Record Financial Results for

Exhibit 99.2

LCNB Corp. and Subsidiaries

Financial Highlights

(Dollars in thousands, except per share amounts)

(Unaudited)

	Three Months Ended											Twelve Months Ended
	12/31/2021			9/30/2021		6/30/2021		3/31/2021		12/31/2020		12/31/21		12/31/20
Condensed Income Statement
Interest income	$	15,189		15,024		15,429		15,535		15,945		61,177		63,780
Interest expense	879			951		1,060		1,163		1,432		4,053		7,562
Net interest income	14,310			14,073		14,369		14,372		14,513		57,124		56,218
Provision (credit) for loan losses	(508)			306		(15)		(52)		(151)		(269)		2,014
Net interest income after provision (credit) for loan losses	14,818			13,767		14,384		14,424		14,664		57,393		54,204
Non-interest income	4,347			4,106		4,314		3,465		4,305		16,232		15,741
Non-interest expense	12,311			12,029		12,208		11,492		11,944		48,040		45,785
Income before income taxes	6,854			5,844		6,490		6,397		7,025		25,585		24,160
Provision for income taxes	1,227			1,027		1,200		1,157		1,283		4,611		4,085
Net income	$	5,627		4,817		5,290		5,240		5,742		20,974		20,075
Amort/Accret income on acquired loans	$	116		132		216		249		186		713		1,328
Tax-equivalent net interest income	$	14,365		14,129		14,427		14,432		14,577		57,354		56,491
Per Share Data
Dividends per share	$	0.20		0.19		0.19		0.19		0.19		0.77		0.73
Basic earnings per common share	$	0.45		0.39		0.41		0.41		0.44		1.66		1.55
Diluted earnings per common share	$	0.45		0.39		0.41		0.41		0.44		1.66		1.55
Book value per share	$	19.22		19.17		18.99		18.66		18.73		19.22		18.73
Tangible book value per share	$	14.33		14.28		14.15		13.87		13.93		14.33		13.93
Weighted average common shares outstanding:
Basic	12,370,702			12,455,276		12,743,726		12,794,824		12,852,614		12,589,605		12,914,277
Diluted	12,370,702			12,455,276		12,743,726		12,794,852		12,852,657		12,589,613		12,914,584
Shares outstanding at period end	12,414,956			12,434,084		12,634,845		12,820,108		12,858,325		12,414,956		12,858,325
Selected Financial Ratios
Return on average assets	1.18		%	1.02	%	1.15	%	1.20	%	1.31	%	1.13	%	1.18	%
Return on average equity	9.33		%	7.93	%	8.78	%	8.80	%	9.52	%	8.71	%	8.49	%
Return on average tangible common equity	12.51		%	10.62	%	11.76	%	11.81	%	12.83	%	11.67	%	11.53	%
Dividend payout ratio	44.44		%	48.72	%	46.34	%	46.34	%	43.18	%	46.39	%	47.10	%
Net interest margin (tax equivalent)	3.34		%	3.32	%	3.51	%	3.68	%	3.71	%	3.45	%	3.70	%
Efficiency ratio (tax equivalent)	65.79		%	65.96	%	65.14	%	64.21	%	63.26	%	65.28	%	63.39	%
Selected Balance Sheet Items
Cash and cash equivalents	$	18,136		23,852		22,909		41,144		31,730
Debt and equity securities	345,649			352,066		349,199		276,774		248,624
Loans:
Commercial and industrial	$	101,792		91,246		97,240		107,630		100,254
Commercial, secured by real estate	889,108			862,202		836,085		855,894		843,230
Residential real estate	334,547			343,318		341,447		328,265		309,692
Consumer	34,190			35,349		35,257		35,799		36,917
Agricultural	10,647			8,852		8,765		8,698		10,100
Other, including deposit overdrafts	122			247		369		346		363
Deferred net origination fees	(961)			(1,055)		(1,398)		(1,531)		(1,135)
Loans, gross	1,369,445			1,340,159		1,317,765		1,335,101		1,299,421
Less allowance for loan losses	5,506			5,828		5,652		5,679		5,728
Loans, net	$	1,363,939		1,334,331		1,312,113		1,329,422		1,293,693

	Three Months Ended											Twelve Months Ended
	12/31/2021			9/30/2021		6/30/2021		3/31/2021		12/31/2020		12/31/21		12/31/20
Selected Balance Sheet Items, continued
Total earning assets	$	1,716,420		1,695,281		1,671,462		1,634,818		1,562,392
Total assets	1,903,629			1,884,252		1,856,670		1,818,321		1,745,884
Total deposits	1,628,819			1,603,203		1,577,345		1,537,116		1,455,423
Long-term debt	10,000			15,000		15,000		17,000		22,000
Total shareholders’ equity	238,604			238,419		239,952		239,246		240,825
Equity to assets ratio	12.53		%	12.65	%	12.92	%	13.16	%	13.79	%
Loans to deposits ratio	84.08		%	83.59	%	83.54	%	86.86	%	89.28	%
Tangible common equity (TCE)	$	177,949		177,501		178,771		177,805		179,127
Tangible common assets (TCA)	1,842,974			1,823,334		1,795,489		1,756,880		1,684,186
TCE/TCA	9.66		%	9.73	%	9.96	%	10.12	%	10.64	%
Selected Average Balance Sheet Items
Cash and cash equivalents	$	29,614		34,557		45,414		37,269		49,273		36,648		40,825
Debt and equity securities	348,150			356,214		312,596		260,147		218,816		319,619		201,012
Loans	$	1,351,762		1,321,629		1,328,760		1,313,803		1,313,892		1,329,072		1,306,314
Less allowance for loan losses	5,843			5,567		5,678		5,715		5,920		5,701		5,029
Net loans	$	1,345,919		1,316,062		1,323,082		1,308,088		1,307,972		1,323,371		1,301,285
Total earning assets	$	1,708,392		1,688,589		1,666,126		1,589,582		1,561,392		1,663,567		1,528,134
Total assets	1,896,530			1,879,314		1,852,035		1,775,154		1,742,947		1,851,177		1,706,924
Total deposits	1,615,020			1,595,773		1,570,070		1,488,156		1,447,217		1,567,680		1,413,093
Short-term borrowings	893			1,320		716		342		—		821		372
Long-term debt	14,402			15,000		15,571		19,689		30,803		16,148		34,265
Total shareholders’ equity	239,174			240,976		241,651		241,517		239,881		240,823		236,396
Equity to assets ratio	12.61		%	12.82	%	13.05	%	13.61	%	13.76	%	13.01	%	13.85	%
Loans to deposits ratio	83.70		%	82.82	%	84.63	%	88.28	%	90.79	%	84.78	%	92.44	%
Asset Quality
Net charge-offs (recoveries)	$	(186)		130		12		(3)		95		(47)		331
Other real estate owned	—			—		—		—		—		—		—
Non-accrual loans	1,481			2,629		3,338		3,365		3,718		1,481		3,718
Loans past due 90 days or more and still accruing	56			13		—		—		—		56		—
Total nonperforming loans	$	1,537		2,642		3,338		3,365		3,718		1,537		3,718
Net charge-offs (recoveries) to average loans	(0.05)		%	0.04	%	0.00	%	0.00	%	0.03	%	0.00	%	0.03	%
Allowance for loan losses to total loans	0.40		%	0.43	%	0.43	%	0.43	%	0.44	%	0.40	%	0.44	%
Nonperforming loans to total loans	0.11		%	0.20	%	0.25	%	0.25	%	0.29	%	0.11	%	0.29	%
Nonperforming assets to total assets	0.08		%	0.14	%	0.18	%	0.19	%	0.21	%	0.08	%	0.21	%
Assets Under Management
LCNB Corp. total assets	$	1,903,629		1,884,252		1,856,670		1,818,321		1,745,884
Trust and investments (fair value)	722,093			713,936		701,838		673,742		628,414
Mortgage loans serviced	149,382			140,147		126,924		127,290		137,188
Cash management	34,009			72,622		80,177		118,494		116,792
Brokerage accounts (fair value)	334,670			319,495		314,491		299,355		292,953
Total assets managed	$	3,143,783		3,130,452		3,080,100		3,037,202		2,921,231

LCNB CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

(Dollars in thousands)

	December 31, 2021 (Unaudited)		December 31, 2020
ASSETS:
Cash and due from banks	$	16,810	17,383
Interest-bearing demand deposits	1,326		14,347
Total cash and cash equivalents	18,136		31,730
Investment securities:
Equity securities with a readily determinable fair value, at fair value	2,546		2,389
Equity securities without a readily determinable fair value, at cost	2,099		2,099
Debt securities, available-for-sale, at fair value	308,177		209,471
Debt securities, held-to-maturity, at cost	22,972		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	1,363,939		1,293,693
Premises and equipment, net	35,385		35,376
Operating leases right of use asset	6,357		6,274
Goodwill	59,221		59,221
Core deposit and other intangibles	2,473		3,453
Bank owned life insurance	43,224		42,149
Interest receivable	7,999		8,337
Other assets	21,246		17,027
TOTAL ASSETS	$	1,903,629	1,745,884
LIABILITIES:
Deposits:
Noninterest-bearing	$	501,531	455,073
Interest-bearing	1,127,288		1,000,350
Total deposits	1,628,819		1,455,423
Long-term debt	10,000		22,000
Operating lease liabilities	6,473		6,371
Accrued interest and other liabilities	19,733		21,265
TOTAL LIABILITIES	1,665,025		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 14,213,792 and 14,163,904 shares at December 31, 2021 and 2020, respectively; outstanding 12,414,956 and 12,858,325 shares at December 31, 2021 and 2020, respectively	143,130		142,443
Retained earnings	126,312		115,058
Treasury shares at cost, 1,798,836 and 1,305,579 shares at December 31, 2021 and 2020, respectively	(29,029)		(20,719)
Accumulated other comprehensive income (loss), net of taxes	(1,809)		4,043
TOTAL SHAREHOLDERS' EQUITY	238,604		240,825
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	1,903,629	1,745,884

LCNB CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)

	Three Months Ended December 31,			Twelve Months Ended December 31,
	2021		2020	2021	2020
INTEREST INCOME:
Interest and fees on loans	$	13,770	14,839	56,142	59,267
Dividends on equity securities with a readily determinable fair value	13		14	51	54
Dividends on equity securities without a readily determinable fair value	5		4	21	37
Interest on debt securities, taxable	1,018		666	3,668	2,916
Interest on debt securities, non-taxable	208		239	864	1,027
Other investments	175		183	431	479
TOTAL INTEREST INCOME	15,189		15,945	61,177	63,780
INTEREST EXPENSE:
Interest on deposits	769		1,218	3,578	6,634
Interest on short-term borrowings	2		—	6	7
Interest on long-term debt	108		214	469	921
TOTAL INTEREST EXPENSE	879		1,432	4,053	7,562
NET INTEREST INCOME	14,310		14,513	57,124	56,218
PROVISION (CREDIT) FOR LOAN LOSSES	(508)		(151)	(269)	2,014
NET INTEREST INCOME AFTER PROVISION (CREDIT) FOR LOAN LOSSES	14,818		14,664	57,393	54,204
NON-INTEREST INCOME:
Fiduciary income	1,715		1,430	6,674	5,009
Service charges and fees on deposit accounts	1,530		1,444	6,036	5,482
Net gains on sales of debt securities, available-for-sale	303		—	303	221
Bank owned life insurance income	269		278	1,074	1,441
Gains from sales of loans	292		861	852	2,297
Other operating income	238		292	1,293	1,291
TOTAL NON-INTEREST INCOME	4,347		4,305	16,232	15,741
NON-INTEREST EXPENSE:
Salaries and employee benefits	6,976		6,899	27,616	27,178
Equipment expenses	446		460	1,678	1,377
Occupancy expense, net	713		730	2,949	2,875
State financial institutions tax	440		428	1,758	1,708
Marketing	361		348	1,239	1,254
Amortization of intangibles	263		263	1,043	1,046
FDIC insurance premiums, net	127		114	492	256
ATM expense	436		347	1,416	1,028
Computer maintenance and supplies	332		291	1,213	1,107
Telephone expense	64		185	420	706
Contracted services	612		509	2,430	1,821
Other non-interest expense	1,541		1,370	5,786	5,429
TOTAL NON-INTEREST EXPENSE	12,311		11,944	48,040	45,785
INCOME BEFORE INCOME TAXES	6,854		7,025	25,585	24,160
PROVISION FOR INCOME TAXES	1,227		1,283	4,611	4,085
NET INCOME	$	5,627	5,742	20,974	20,075
Dividends declared per common share	$	0.20	0.19	0.77	0.73
Earnings per common share:
Basic	0.45		0.44	1.66	1.55
Diluted	0.45		0.44	1.66	1.55
Weighted average common shares outstanding:
Basic	12,370,702		12,852,614	12,589,605	12,914,277
Diluted	12,370,702		12,852,657	12,589,613	12,914,584