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
	9/30/2022			6/30/2022		3/31/2022		12/31/2021		9/30/2021		9/30/2022		9/30/2021
Condensed Income Statement
Interest income	$	16,704		16,208		15,122		15,189		15,024		48,034		45,988
Interest expense	1,260			1,041		899		879		951		3,200		3,174
Net interest income	15,444			15,167		14,223		14,310		14,073		44,834		42,814
Provision for (recovery of) loan losses	(157)			377		49		(508)		306		269		239
Net interest income after provision for (recovery of) loan losses	15,601			14,790		14,174		14,818		13,767		44,565		42,575
Non-interest income	3,581			3,528		3,550		4,347		4,106		10,659		11,885
Non-interest expense	12,350			11,469		12,250		12,311		12,029		36,069		35,729
Income before income taxes	6,832			6,849		5,474		6,854		5,844		19,155		18,731
Provision for income taxes	1,253			1,231		951		1,227		1,027		3,435		3,384
Net income	$	5,579		5,618		4,523		5,627		4,817		15,720		15,347
Supplemental Income Statement Information
Amort/Accret income on acquired loans	$	144		61		66		116		132		271		597
Tax-equivalent net interest income	$	15,495		15,217		14,273		14,365		14,129		44,985		42,988
Per Share Data
Dividends per share	$	0.20		0.20		0.20		0.20		0.19		0.60		0.57
Basic earnings per common share	$	0.49		0.49		0.38		0.45		0.39		1.36		1.21
Diluted earnings per common share	$	0.49		0.49		0.38		0.45		0.39		1.36		1.21
Book value per share	$	17.31		17.84		18.14		19.22		19.17		17.31		19.17
Tangible book value per share	$	11.97		12.53		12.84		14.33		14.28		11.97		14.28
Weighted average common shares outstanding:
Basic	11,284,225			11,337,805		11,818,614		12,370,702		12,455,276		11,478,256		12,663,368
Diluted	11,284,225			11,337,805		11,818,614		12,370,702		12,455,276		11,478,256		12,663,378
Shares outstanding at period end	11,293,639			11,374,515		11,401,503		12,414,956		12,433,328		11,293,639		12,433,328
Selected Financial Ratios
Return on average assets	1.15		%	1.18	%	0.96	%	1.18	%	1.02	%	1.09	%	1.12	%
Return on average equity	10.80		%	10.96	%	8.13	%	9.33	%	7.93	%	9.91	%	8.50	%
Return on average tangible common equity	15.30		%	15.52	%	11.11	%	12.51	%	10.62	%	13.86	%	11.39	%
Dividend payout ratio	40.82		%	40.82	%	52.63	%	44.44	%	48.72	%	44.12	%	47.11	%
Net interest margin (tax equivalent)	3.54		%	3.54	%	3.35	%	3.34	%	3.32	%	3.48	%	3.49	%
Efficiency ratio (tax equivalent)	64.74		%	61.18	%	68.73	%	65.79	%	65.96	%	64.82	%	65.11	%
Selected Balance Sheet Items
Cash and cash equivalents	$	29,460		31,815		19,941		18,136		23,852
Debt and equity securities	325,801			337,952		330,715		345,649		352,066
Loans:
Commercial and industrial	$	114,694		114,971		105,805		101,792		91,246
Commercial, secured by real estate	908,130			905,703		906,140		889,108		862,202
Residential real estate	316,669			315,930		328,034		334,547		343,318
Consumer	29,451			30,308		32,445		34,190		35,349
Agricultural	8,630			7,412		7,980		10,647		8,852
Other, including deposit overdrafts	52			81		45		122		247
Deferred net origination fees	(937)			(928)		(928)		(961)		(1,055)
Loans, gross	1,376,689			1,373,477		1,379,521		1,369,445		1,340,159
Less allowance for loan losses	5,644			5,833		5,530		5,506		5,828
Loans, net	$	1,371,045		1,367,644		1,373,991		1,363,939		1,334,331

	Three Months Ended											Nine Months Ended
	9/30/2022			6/30/2022		3/31/2022		12/31/2021		9/30/2021		9/30/2022		9/30/2021
Selected Balance Sheet Items, continued
Total earning assets	$	1,714,196		1,722,853		1,712,115		1,716,420		1,695,281
Total assets	1,904,700			1,912,627		1,899,630		1,903,629		1,884,252
Total deposits	1,657,370			1,658,825		1,636,606		1,628,819		1,603,203
Short-term borrowings	4,000			5,000		24,746		—		—
Long-term debt	24,539			25,000		10,000		10,000		15,000
Total shareholders’ equity	195,439			202,960		206,875		238,604		238,419
Equity to assets ratio	10.26		%	10.61	%	10.89	%	12.53	%	12.65	%
Loans to deposits ratio	83.06		%	82.80	%	84.29	%	84.08	%	83.59	%
Tangible common equity (TCE)	$	135,149		142,557		146,360		177,949		177,501
Tangible common assets (TCA)	1,844,410			1,852,224		1,839,115		1,842,974		1,823,334
TCE/TCA	7.33		%	7.70	%	7.96	%	9.66	%	9.73	%
Selected Average Balance Sheet Items
Cash and cash equivalents	$	35,763		28,787		32,826		29,614		34,557		32,393		39,021
Debt and equity securities	338,299			338,149		340,666		348,150		356,214		339,051		310,004
Loans	$	1,384,520		1,375,710		1,376,926		1,351,762		1,321,629		1,379,080		1,321,426
Less allowance for loan losses	5,830			5,532		5,503		5,843		5,567		5,623		5,653
Net loans	$	1,378,690		1,370,178		1,371,423		1,345,919		1,316,062		1,373,457		1,315,773
Total earning assets	$	1,736,031		1,722,503		1,727,335		1,708,392		1,688,589		1,728,677		1,648,461
Total assets	1,928,868			1,912,574		1,917,226		1,896,530		1,879,314		1,919,804		1,835,887
Total deposits	1,669,932			1,655,389		1,646,627		1,615,020		1,595,773		1,657,401		1,551,727
Short-term borrowings	5,728			18,263		12,503		893		1,320		12,140		796
Long-term debt	24,920			12,637		10,000		14,402		15,000		15,907		16,736
Total shareholders’ equity	205,051			205,645		225,725		239,174		240,976		212,064		241,379
Equity to assets ratio	10.63		%	10.75	%	11.77	%	12.61	%	12.82	%	11.05	%	13.15	%
Loans to deposits ratio	82.91		%	83.10	%	83.62	%	83.70	%	82.82	%	83.21	%	85.16	%
Asset Quality
Net charge-offs (recoveries)	$	32		74		25		(186)		130		131		139
Non-accrual loans	$	465		599		1,455		1,481		2,629		465		2,629
Loans past due 90 days or more and still accruing	—			—		—		56		13		—		13
Total nonperforming loans	$	465		599		1,455		1,537		2,642		465		2,642
Net charge-offs (recoveries) to average loans	0.01		%	0.02	%	0.01	%	(0.05)	%	0.04	%	0.01	%	0.01	%
Allowance for loan losses to total loans	0.41		%	0.42	%	0.40	%	0.40	%	0.43	%	0.41	%	0.43	%
Nonperforming loans to total loans	0.03		%	0.04	%	0.11	%	0.11	%	0.20	%	0.03	%	0.20	%
Nonperforming assets to total assets	0.02		%	0.03	%	0.08	%	0.08	%	0.14	%	0.02	%	0.14	%
Assets Under Management
LCNB Corp. total assets	$	1,904,700		1,912,627		1,899,630		1,903,629		1,884,252
Trust and investments (fair value)	611,409			625,984		700,353		722,093		713,936
Mortgage loans serviced	145,317			153,557		152,271		149,382		140,147
Cash management	53,199			38,914		75,302		34,009		72,622
Brokerage accounts (fair value)	314,144			303,663		326,290		334,670		319,495
Total assets managed	$	3,028,769		3,034,745		3,153,846		3,143,783		3,130,452

LCNB CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

(Dollars in thousands)

	September 30, 2022 (Unaudited)		December 31, 2021
ASSETS:
Cash and due from banks	$	17,754	16,810
Interest-bearing demand deposits	11,706		1,326
Total cash and cash equivalents	29,460		18,136
Investment securities:
Equity securities with a readily determinable fair value, at fair value	2,175		2,546
Equity securities without a readily determinable fair value, at cost	2,099		2,099
Debt securities, available-for-sale, at fair value	290,419		308,177
Debt securities, held-to-maturity, at cost	22,415		22,972
Federal Reserve Bank stock, at cost	4,652		4,652
Federal Home Loan Bank stock, at cost	4,041		5,203
Loans, net	1,371,045		1,363,939
Premises and equipment, net	33,152		35,385
Operating leases right of use asset	6,025		6,357
Goodwill	59,221		59,221
Core deposit and other intangibles	1,996		2,473
Bank owned life insurance	44,027		43,224
Interest receivable	7,622		7,999
Other assets	26,351		21,246
TOTAL ASSETS	$	1,904,700	1,903,629
LIABILITIES:
Deposits:
Noninterest-bearing	$	521,704	501,531
Interest-bearing	1,135,666		1,127,288
Total deposits	1,657,370		1,628,819
Short-term borrowings	4,000		—
Long-term debt	24,539		10,000
Operating lease liabilities	6,116		6,473
Accrued interest and other liabilities	17,236		19,733
TOTAL LIABILITIES	1,709,261		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 14,264,931 and 14,213,792 shares at September 30, 2022 and December 31, 2021, respectively; outstanding 11,293,639 and 12,414,956 shares at September 30, 2022 and December 31, 2021, respectively	143,855		143,130
Retained earnings	135,202		126,312
Treasury shares at cost, 2,971,292 and 1,798,836 shares at September 30, 2022 and December 31, 2021, respectively	(52,009)		(29,029)
Accumulated other comprehensive loss, net of taxes	(31,609)		(1,809)
TOTAL SHAREHOLDERS' EQUITY	195,439		238,604
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	1,904,700	1,903,629

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,
	2022		2021	2022	2021
INTEREST INCOME:
Interest and fees on loans	$	15,026	13,729	43,360	42,372
Dividends on equity securities with a readily determinable fair value	14		12	40	38
Dividends on equity securities without a readily determinable fair value	6		5	16	16
Interest on debt securities, taxable	1,323		1,027	3,672	2,650
Interest on debt securities, non-taxable	190		214	567	656
Other investments	145		37	379	256
TOTAL INTEREST INCOME	16,704		15,024	48,034	45,988
INTEREST EXPENSE:
Interest on deposits	979		836	2,493	2,809
Interest on short-term borrowings	71		2	320	4
Interest on long-term debt	210		113	387	361
TOTAL INTEREST EXPENSE	1,260		951	3,200	3,174
NET INTEREST INCOME	15,444		14,073	44,834	42,814
PROVISION (CREDIT) FOR LOAN LOSSES	(157)		306	269	239
NET INTEREST INCOME AFTER PROVISION (CREDIT) FOR LOAN LOSSES	15,601		13,767	44,565	42,575
NON-INTEREST INCOME:
Fiduciary income	1,513		1,695	4,851	4,959
Service charges and fees on deposit accounts	1,706		1,621	4,658	4,506
Bank owned life insurance income	269		269	803	805
Gains from sales of loans	—		366	188	560
Other operating income	93		155	159	1,055
TOTAL NON-INTEREST INCOME	3,581		4,106	10,659	11,885
NON-INTEREST EXPENSE:
Salaries and employee benefits	7,062		7,096	21,291	20,640
Equipment expenses	398		421	1,234	1,232
Occupancy expense, net	790		713	2,300	2,236
State financial institutions tax	439		437	1,312	1,318
Marketing	215		253	845	878
Amortization of intangibles	113		263	365	780
FDIC insurance premiums, net	137		129	397	365
Contracted services	613		655	1,902	1,818
Other real estate owned, net	5		—	(874)	2
Other non-interest expense	2,578		2,062	7,297	6,460
TOTAL NON-INTEREST EXPENSE	12,350		12,029	36,069	35,729
INCOME BEFORE INCOME TAXES	6,832		5,844	19,155	18,731
PROVISION FOR INCOME TAXES	1,253		1,027	3,435	3,384
NET INCOME	$	5,579	4,817	15,720	15,347
Dividends declared per common share	$	0.20	0.19	0.60	0.57
Earnings per common share:
Basic	0.49		0.39	1.36	1.21
Diluted	0.49		0.39	1.36	1.21
Weighted average common shares outstanding:
Basic	11,284,225		12,455,276	11,478,256	12,663,368
Diluted	11,284,225		12,455,276	11,478,256	12,663,378