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												Six Months Ended
	6/30/2022				3/31/2022		12/31/2021		9/30/2021		6/30/2021		6/30/2022		6/30/2021
Condensed Income Statement
Interest income	$	16,208			15,122		15,189		15,024		15,429		31,330		30,964
Interest expense	1,041				899		879		951		1,060		1,940		2,223
Net interest income	15,167				14,223		14,310		14,073		14,369		29,390		28,741
Provision (credit) for loan losses	377				49		(508)		306		(15)		426		(67)
Net interest income after provision (credit) for loan losses	14,790				14,174		14,818		13,767		14,384		28,964		28,808
Non-interest income	3,528				3,550		4,347		4,106		4,314		7,078		7,779
Non-interest expense	11,469				12,250		12,311		12,029		12,208		23,719		23,700
Income before income taxes	6,849				5,474		6,854		5,844		6,490		12,323		12,887
Provision for income taxes	1,231				951		1,227		1,027		1,200		2,182		2,357
Net income	$	5,618			4,523		5,627		4,817		5,290		10,141		10,530
Supplemental Income Statement Information
Amort/Accret income on acquired loans	$	61			66		116		132		216		127		465
Tax-equivalent net interest income	$	15,217			14,273		14,365		14,129		14,427		29,490		28,858
Per Share Data
Dividends per share	$	0.20			0.20		0.20		0.19		0.19		0.40		0.38
Basic earnings per common share	$	0.49			0.38		0.45		0.39		0.41		0.87		0.82
Diluted earnings per common share	$	0.49			0.38		0.45		0.39		0.41		0.87		0.82
Book value per share	$	17.84			18.14		19.22		19.17		18.99		17.84		18.99
Tangible book value per share	$	12.53			12.84		14.33		14.28		14.15		12.53		14.15
Weighted average common shares outstanding:
Basic	11,337,805				11,818,614		12,370,702		12,455,276		12,743,726		11,576,873		12,769,131
Diluted	11,337,805				11,818,614		12,370,702		12,455,276		12,743,726		11,576,873		12,769,146
Shares outstanding at period end	11,374,515				11,401,503		12,414,956		12,434,084		12,634,845		11,374,515		12,634,845
Selected Financial Ratios
Return on average assets	1.18		%		0.96	%	1.18	%	1.02	%	1.15	%	1.07	%	1.17	%
Return on average equity	10.96		%		8.13	%	9.33	%	7.93	%	8.78	%	9.48	%	8.79	%
Return on average tangible common equity	15.52		%		11.11	%	12.51	%	10.62	%	11.76	%	13.18	%	11.79	%
Dividend payout ratio	40.82		%		52.63	%	44.44	%	48.72	%	46.34	%	45.98	%	46.34	%
Net interest margin (tax equivalent)	3.54		%		3.35	%	3.34	%	3.32	%	3.51	%	3.45	%	3.57	%
Efficiency ratio (tax equivalent)	61.18		%		68.73	%	65.79	%	65.96	%	65.14	%	64.86	%	64.69	%
Selected Balance Sheet Items
Cash and cash equivalents	$	31,815			19,941		18,136		23,852		22,909
Debt and equity securities	337,952				330,715		345,649		352,066		349,199
Loans:
Commercial and industrial	$	114,971			105,805		101,792		91,246		97,240
Commercial, secured by real estate	905,703				906,140		889,108		862,202		836,085
Residential real estate	315,930				328,034		334,547		343,318		341,447
Consumer	30,308				32,445		34,190		35,349		35,257
Agricultural	7,412				7,980		10,647		8,852		8,765
Other, including deposit overdrafts	81				45		122		247		369
Deferred net origination fees	(928)				(928)		(961)		(1,055)		(1,398)
Loans, gross	1,373,477			1373477000	1,379,521		1,369,445		1,340,159		1,317,765
Less allowance for loan losses	5,833				5,530		5,506		5,828		5,652
Loans, net	$	1,367,644			1,373,991		1,363,939		1,334,331		1,312,113

	Three Months Ended												Six Months Ended
	6/30/2022			3/31/2022		12/31/2021		9/30/2021			6/30/2021		6/30/2022		6/30/2021
Selected Balance Sheet Items, continued
Total earning assets	$	1,722,853		1,712,115		1,716,420		1,695,281			1,671,462
Total assets	1,912,627			1,899,630		1,903,629		1,884,252			1,856,670
Total deposits	1,658,825			1,636,606		1,628,819		1,603,203			1,577,345
Short-term borrowings	5,000			24,746		—		—			—
Long-term debt	25,000			10,000		10,000		15,000			15,000
Total shareholders’ equity	202,960			206,875		238,604		238,419			239,952
Equity to assets ratio	10.61		%	10.89	%	12.53	%	12.65		%	12.92	%
Loans to deposits ratio	82.80		%	84.29	%	84.08	%	83.59		%	83.54	%
Tangible common equity (TCE)	$	142,557		146,360		177,949		177,501			178,771
Tangible common assets (TCA)	1,852,224			1,839,115		1,842,974		1,823,334			1,795,489
TCE/TCA	7.70		%	7.96	%	9.66	%	9.73		%	9.96	%
Selected Average Balance Sheet Items
Cash and cash equivalents	$	28,787		32,826		29,614		34,557			45,414		30,788		41,385
Debt and equity securities	338,149			340,666		348,150		356,214			312,596		339,432		286,517
Loans	$	1,375,710		1,376,926		1,351,762		1,321,629			1,328,760		1,376,315		1,321,323
Less allowance for loan losses	5,532			5,503		5,843		5,567			5,678		5,517		5,696
Net loans	$	1,370,178		1,371,423		1,345,919		1,316,062			1,323,082		1,370,798		1,315,627
Total earning assets	$	1,722,503		1,727,335		1,708,392		1,688,589			1,666,126		1,724,938		1,628,066
Total assets	1,912,574			1,917,226		1,896,530		1,879,314			1,852,035		1,914,767		1,813,888
Total deposits	1,655,389			1,646,627		1,615,020		1,595,773			1,570,070		1,651,032		1,529,339
Short-term borrowings	18,263			12,503		893		1,320			716		15,399		530
Long-term debt	12,637			10,000		14,402		15,000			15,571		11,326		17,619
Total shareholders’ equity	205,645			225,725		239,174		240,976			241,651		215,629		241,585
Equity to assets ratio	10.75		%	11.77	%	12.61	%	12.82		%	13.05	%	11.26	%	13.32	%
Loans to deposits ratio	83.10		%	83.62	%	83.70	%	82.82		%	84.63	%	83.36	%	86.40	%
Asset Quality
Net charge-offs (recoveries)	$	74		25		(186)		$	130		12		99		9
Other real estate owned	—			—		—		—			—		—		—
Non-accrual loans	$	599		1,455		1,481		2,629			3,338		599		3,338
Loans past due 90 days or more and still accruing	—			—		56		13			—		—		—
Total nonperforming loans	$	599		1,455		1,537		$	2,642		3,338		599		3,338
Net charge-offs (recoveries) to average loans	0.02		%	0.01	%	(0.05)	%	0.04		%	0.00	%	0.01	%	0.00	%
Allowance for loan losses to total loans	0.42		%	0.40	%	0.40	%	0.43		%	0.43	%	0.42	%	0.43	%
Nonperforming loans to total loans	0.04		%	0.11	%	0.11	%	0.20		%	0.25	%	0.04	%	0.25	%
Nonperforming assets to total assets	0.03		%	0.08	%	0.08	%	0.14		%	0.18	%	0.03	%	0.18	%
Assets Under Management
LCNB Corp. total assets	$	1,912,627		1,899,630		1,903,629		1,884,252			1,856,670
Trust and investments (fair value)	625,984			700,353		722,093		713,936			701,838
Mortgage loans serviced	153,557			152,271		149,382		140,147			126,924
Cash management	38,914			75,302		34,009		72,622			80,177
Brokerage accounts (fair value)	303,663			326,290		334,670		319,495			314,491
Total assets managed	$	3,034,745		3,153,846		3,143,783		3,130,452			3,080,100

LCNB CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

(Dollars in thousands)

	June 30, 2022 (Unaudited)		December 31, 2021
ASSETS:
Cash and due from banks	$	20,391	16,810
Interest-bearing demand deposits	11,424		1,326
Total cash and cash equivalents	31,815		18,136
Investment securities:
Equity securities with a readily determinable fair value, at fair value	2,250		2,546
Equity securities without a readily determinable fair value, at cost	2,099		2,099
Debt securities, available-for-sale, at fair value	301,232		308,177
Debt securities, held-to-maturity, at cost	22,516		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	1,367,644		1,363,939
Premises and equipment, net	34,519		35,385
Operating leases right of use asset	6,101		6,357
Goodwill	59,221		59,221
Core deposit and other intangibles	2,178		2,473
Bank owned life insurance	43,758		43,224
Interest receivable	7,448		7,999
Other assets	21,991		21,246
TOTAL ASSETS	$	1,912,627	1,903,629
LIABILITIES:
Deposits:
Noninterest-bearing	$	499,124	501,531
Interest-bearing	1,159,701		1,127,288
Total deposits	1,658,825		1,628,819
Short-term borrowings	5,000		—
Long-term debt	25,000		10,000
Operating lease liabilities	6,227		6,473
Accrued interest and other liabilities	14,615		19,733
TOTAL LIABILITIES	1,709,667		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 14,258,074 and 14,213,792 shares at June 30, 2022 and December 31, 2021, respectively; outstanding 11,374,515 and 12,414,956 shares at June 30, 2022 and December 31, 2021, respectively	143,635		143,130
Retained earnings	131,894		126,312
Treasury shares at cost, 2,883,559 and 1,798,836 shares at June 30, 2022 and December 31, 2021, respectively	(50,629)		(29,029)
Accumulated other comprehensive loss, net of taxes	(21,940)		(1,809)
TOTAL SHAREHOLDERS' EQUITY	202,960		238,604
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	1,912,627	1,903,629

LCNB CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)

	Three Months Ended June 30,			Six Months Ended  June 30,
	2022		2021	2022	2021
INTEREST INCOME:
Interest and fees on loans	$	14,548	14,108	28,334	28,643
Dividends on equity securities with a readily determinable fair value	14		13	26	26
Dividends on equity securities without a readily determinable fair value	5		5	10	11
Interest on debt securities, taxable	1,254		905	2,349	1,623
Interest on debt securities, non-taxable	188		218	377	442
Other investments	199		180	234	219
TOTAL INTEREST INCOME	16,208		15,429	31,330	30,964
INTEREST EXPENSE:
Interest on deposits	775		945	1,514	1,973
Interest on short-term borrowings	163		1	249	2
Interest on long-term debt	103		114	177	248
TOTAL INTEREST EXPENSE	1,041		1,060	1,940	2,223
NET INTEREST INCOME	15,167		14,369	29,390	28,741
PROVISION (CREDIT) FOR LOAN LOSSES	377		(15)	426	(67)
NET INTEREST INCOME AFTER PROVISION (CREDIT) FOR LOAN LOSSES	14,790		14,384	28,964	28,808
NON-INTEREST INCOME:
Fiduciary income	1,643		1,735	3,338	3,264
Service charges and fees on deposit accounts	1,546		1,519	2,952	2,885
Bank owned life insurance income	269		269	534	536
Gains from sales of loans	64		151	188	194
Other operating income	6		640	66	900
TOTAL NON-INTEREST INCOME	3,528		4,314	7,078	7,779
NON-INTEREST EXPENSE:
Salaries and employee benefits	7,014		7,111	14,229	13,544
Equipment expenses	428		443	836	811
Occupancy expense, net	735		729	1,510	1,523
State financial institutions tax	437		437	873	881
Marketing	368		357	630	625
Amortization of intangibles	112		260	252	517
FDIC insurance premiums, net	134		123	260	236
Contracted services	679		623	1,289	1,163
Other real estate owned, net	(879)		1	(879)	2
Other non-interest expense	2,441		2,124	4,719	4,398
TOTAL NON-INTEREST EXPENSE	11,469		12,208	23,719	23,700
INCOME BEFORE INCOME TAXES	6,849		6,490	12,323	12,887
PROVISION FOR INCOME TAXES	1,231		1,200	2,182	2,357
NET INCOME	$	5,618	5,290	10,141	10,530
Dividends declared per common share	$	0.20	0.19	0.40	0.38
Earnings per common share:
Basic	0.49		0.41	0.87	0.82
Diluted	0.49		0.41	0.87	0.82
Weighted average common shares outstanding:
Basic	11,337,805		12,743,726	11,576,873	12,769,131
Diluted	11,337,805		12,743,726	11,576,873	12,769,146