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												Three Months Ended
	3/31/2022				12/31/2021		9/30/2021		6/30/2021		3/31/2021		3/31/2022		3/31/2021
Condensed Income Statement
Interest income	$	15,122			15,189		15,024		15,429		15,535		15,122		15,535
Interest expense	899				879		951		1,060		1,163		899		1,163
Net interest income	14,223				14,310		14,073		14,369		14,372		14,223		14,372
Provision (credit) for loan losses	49				(508)		306		(15)		(52)		49		(52)
Net interest income after provision (credit) for loan losses	14,174				14,818		13,767		14,384		14,424		14,174		14,424
Non-interest income	3,550				4,347		4,106		4,314		3,465		3,550		3,465
Non-interest expense	12,250				12,311		12,029		12,208		11,492		12,250		11,492
Income before income taxes	5,474				6,854		5,844		6,490		6,397		5,474		6,397
Provision for income taxes	951				1,227		1,027		1,200		1,157		951		1,157
Net income	$	4,523			5,627		4,817		5,290		5,240		4,523		5,240
Amort/Accret income on acquired loans	$	66			116		132		216		249		66		249
Tax-equivalent net interest income	$	14,273			14,365		14,129		14,427		14,432		14,273		14,432
Per Share Data
Dividends per share	$	0.20			0.20		0.19		0.19		0.19		0.20		0.19
Basic earnings per common share	$	0.38			0.45		0.39		0.41		0.41		0.38		0.41
Diluted earnings per common share	$	0.38			0.45		0.39		0.41		0.41		0.38		0.41
Book value per share	$	18.14			19.22		19.17		18.99		18.66		18.14		18.66
Tangible book value per share	$	12.84			14.33		14.28		14.15		13.87		12.84		13.87
Weighted average common shares outstanding:
Basic	11,818,614				12,370,702		12,455,276		12,743,726		12,794,824		11,818,614		12,794,824
Diluted	11,818,614				12,370,702		12,455,276		12,743,726		12,794,852		11,818,614		12,794,852
Shares outstanding at period end	11,401,503				12,414,956		12,434,084		12,634,845		12,820,108		11,401,503		12,820,108
Selected Financial Ratios
Return on average assets	0.96		%		1.18	%	1.02	%	1.15	%	1.20	%	0.96	%	1.20	%
Return on average equity	8.13		%		9.33	%	7.93	%	8.78	%	8.80	%	8.13	%	8.80	%
Return on average tangible common equity	11.11		%		12.51	%	10.62	%	11.76	%	11.81	%	11.11	%	11.81	%
Dividend payout ratio	52.63		%		44.44	%	48.72	%	46.34	%	46.34	%	52.63	%	46.34	%
Net interest margin (tax equivalent)	3.35		%		3.34	%	3.32	%	3.51	%	3.68	%	3.35	%	3.68	%
Efficiency ratio (tax equivalent)	68.73		%		65.79	%	65.96	%	65.14	%	64.21	%	68.73	%	64.21	%
Selected Balance Sheet Items
Cash and cash equivalents	$	19,941			18,136		23,852		22,909		41,144
Debt and equity securities	330,715				345,649		352,066		349,199		276,774
Loans:
Commercial and industrial	$	105,805			101,792		91,246		97,240		107,630
Commercial, secured by real estate	906,140				889,108		862,202		836,085		855,894
Residential real estate	328,034				334,547		343,318		341,447		328,265
Consumer	32,445				34,190		35,349		35,257		35,799
Agricultural	7,980				10,647		8,852		8,765		8,698
Other, including deposit overdrafts	45				122		247		369		346
Deferred net origination fees	(928)				(961)		(1,055)		(1,398)		(1,531)
Loans, gross	1,379,521			1379521000	1,369,445		1,340,159		1,317,765		1,335,101
Less allowance for loan losses	5,530				5,506		5,828		5,652		5,679
Loans, net	$	1,373,991			1,363,939		1,334,331		1,312,113		1,329,422

	Three Months Ended												Three Months Ended
	3/31/2022			12/31/2021		9/30/2021			6/30/2021		3/31/2021		3/31/2022		3/31/2021
Selected Balance Sheet Items, continued
Total earning assets	$	1,712,115		1,716,420		1,695,281			1,671,462		1,634,818
Total assets	1,899,630			1,903,629		1,884,252			1,856,670		1,818,321
Total deposits	1,636,606			1,628,819		1,603,203			1,577,345		1,537,116
Short-term borrowings	24,746			—		—			—		—
Long-term debt	10,000			10,000		15,000			15,000		17,000
Total shareholders’ equity	206,875			238,604		238,419			239,952		239,246
Equity to assets ratio	10.89		%	12.53	%	12.65		%	12.92	%	13.16	%
Loans to deposits ratio	84.29		%	84.08	%	83.59		%	83.54	%	86.86	%
Tangible common equity (TCE)	$	146,360		177,949		177,501			178,771		177,805
Tangible common assets (TCA)	1,839,115			1,842,974		1,823,334			1,795,489		1,756,880
TCE/TCA	7.96		%	9.66	%	9.73		%	9.96	%	10.12	%
Selected Average Balance Sheet Items
Cash and cash equivalents	$	32,826		29,614		34,557			45,414		37,269		32,826		37,269
Debt and equity securities	340,666			348,150		356,214			312,596		260,147		340,666		260,147
Loans	$	1,376,926		1,351,762		1,321,629			1,328,760		1,313,803		1,376,926		1,313,803
Less allowance for loan losses	5,503			5,843		5,567			5,678		5,715		5,503		5,715
Net loans	$	1,371,423		1,345,919		1,316,062			1,323,082		1,308,088		1,371,423		1,308,088
Total earning assets	$	1,727,335		1,708,392		1,688,589			1,666,126		1,589,582		1,727,335		1,589,582
Total assets	1,917,226			1,896,530		1,879,314			1,852,035		1,775,154		1,917,226		1,775,154
Total deposits	1,646,627			1,615,020		1,595,773			1,570,070		1,488,156		1,646,627		1,488,156
Short-term borrowings	12,503			893		1,320			716		342		12,503		342
Long-term debt	10,000			14,402		15,000			15,571		19,689		10,000		19,689
Total shareholders’ equity	225,725			239,174		240,976			241,651		241,517		225,725		241,517
Equity to assets ratio	11.77		%	12.61	%	12.82		%	13.05	%	13.61	%	11.77	%	13.61	%
Loans to deposits ratio	83.62		%	83.70	%	82.82		%	84.63	%	88.28	%	83.62	%	88.28	%
Asset Quality
Net charge-offs (recoveries)	$	25		(186)		$	130		12		(3)		25		(3)
Other real estate owned	—			—		—			—		—		—		—
Non-accrual loans	$	1,455		1,481		2,629			3,338		3,365		1,455		3,365
Loans past due 90 days or more and still accruing	—			56		13			—		—		—		—
Total nonperforming loans	$	1,455		1,537		$	2,642		3,338		3,365		1,455		3,365
Net charge-offs (recoveries) to average loans	0.01		%	(0.05)	%	0.04		%	0.00	%	0.00	%	0.01	%	0.00	%
Allowance for loan losses to total loans	0.40		%	0.40	%	0.43		%	0.43	%	0.43	%	0.40	%	0.43	%
Nonperforming loans to total loans	0.11		%	0.11	%	0.20		%	0.25	%	0.25	%	0.11	%	0.25	%
Nonperforming assets to total assets	0.08		%	0.08	%	0.14		%	0.18	%	0.19	%	0.08	%	0.19	%
Assets Under Management
LCNB Corp. total assets	$	1,899,630		1,903,629		1,884,252			1,856,670		1,818,321
Trust and investments (fair value)	700,353			722,093		713,936			701,838		673,742
Mortgage loans serviced	152,271			149,382		140,147			126,924		127,290
Cash management	75,302			34,009		72,622			80,177		118,494
Brokerage accounts (fair value)	326,290			334,670		319,495			314,491		299,355
Total assets managed	$	3,153,846		3,143,783		3,130,452			3,080,100		3,037,202

LCNB CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

(Dollars in thousands)

	March 31, 2022 (Unaudited)		December 31, 2021
ASSETS:
Cash and due from banks	$	18,062	16,810
Interest-bearing demand deposits	1,879		1,326
Total cash and cash equivalents	19,941		18,136
Investment securities:
Equity securities with a readily determinable fair value, at fair value	2,424		2,546
Equity securities without a readily determinable fair value, at cost	2,099		2,099
Debt securities, available-for-sale, at fair value	293,464		308,177
Debt securities, held-to-maturity, at cost	22,873		22,972
Federal Reserve Bank stock, at cost	4,652		4,652
Federal Home Loan Bank stock, at cost	5,203		5,203
Loans, net	1,373,991		1,363,939
Premises and equipment, net	34,940		35,385
Operating leases right of use asset	6,191		6,357
Goodwill	59,221		59,221
Core deposit and other intangibles	2,328		2,473
Bank owned life insurance	43,488		43,224
Interest receivable	8,364		7,999
Other assets	20,451		21,246
TOTAL ASSETS	$	1,899,630	1,903,629
LIABILITIES:
Deposits:
Noninterest-bearing	$	517,621	501,531
Interest-bearing	1,118,985		1,127,288
Total deposits	1,636,606		1,628,819
Short-term borrowings	24,746		—
Long-term debt	10,000		10,000
Operating lease liabilities	6,337		6,473
Accrued interest and other liabilities	15,066		19,733
TOTAL LIABILITIES	1,692,755		1,665,025
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 14,252,027 and 14,213,792 shares at March 31, 2022 and December 31, 2021, respectively; outstanding 11,401,503 and 12,414,956 shares at March 31, 2022 and December 31, 2021, respectively	143,432		143,130
Retained earnings	128,555		126,312
Treasury shares at cost, 2,850,524 and 1,798,836 shares at March 31, 2022 and December 31, 2021, respectively	(50,115)		(29,029)
Accumulated other comprehensive loss, net of taxes	(14,997)		(1,809)
TOTAL SHAREHOLDERS' EQUITY	206,875		238,604
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	1,899,630	1,903,629

LCNB CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)

	Three Months Ended  March 31,
		2022	2021
INTEREST INCOME:
Interest and fees on loans		13,786	14,535
Dividends on equity securities with a readily determinable fair value		12	13
Dividends on equity securities without a readily determinable fair value		5	6
Interest on debt securities, taxable		1,095	718
Interest on debt securities, non-taxable		189	224
Other investments		35	39
TOTAL INTEREST INCOME		15,122	15,535
INTEREST EXPENSE:
Interest on deposits		739	1,028
Interest on short-term borrowings		86	1
Interest on long-term debt		74	134
TOTAL INTEREST EXPENSE		899	1,163
NET INTEREST INCOME		14,223	14,372
PROVISION (CREDIT) FOR LOAN LOSSES		49	(52)
NET INTEREST INCOME AFTER PROVISION (CREDIT) FOR LOAN LOSSES		14,174	14,424
NON-INTEREST INCOME:
Fiduciary income		1,695	1,529
Service charges and fees on deposit accounts		1,406	1,366
Bank owned life insurance income		265	267
Gains from sales of loans		124	43
Other operating income		60	260
TOTAL NON-INTEREST INCOME		3,550	3,465
NON-INTEREST EXPENSE:
Salaries and employee benefits		7,215	6,433
Equipment expenses		408	368
Occupancy expense, net		775	794
State financial institutions tax		436	444
Marketing		262	268
Amortization of intangibles		140	257
FDIC insurance premiums, net		126	113
Contracted services		610	540
Other non-interest expense		2,278	2,275
TOTAL NON-INTEREST EXPENSE		12,250	11,492
INCOME BEFORE INCOME TAXES		5,474	6,397
PROVISION FOR INCOME TAXES		951	1,157
NET INCOME		4,523	5,240
Dividends declared per common share		0.20	0.19
Earnings per common share:
Basic		0.38	0.41
Diluted		0.38	0.41
Weighted average common shares outstanding:
Basic		11,818,614	12,794,824
Diluted		11,818,614	12,794,852