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
	3/31/2023			12/31/2022		9/30/2022		6/30/2022		3/31/2022
Condensed Income Statement
Interest income	$	17,918		17,719		16,704		16,208		15,122
Interest expense	3,976			1,511		1,260		1,041		899
Net interest income	13,942			16,208		15,444		15,167		14,223
Provision for (recovery of) credit losses	(57)			(19)		(157)		377		49
Net interest income after provision for (recovery of) credit losses	13,999			16,227		15,601		14,790		14,174
Non-interest income	3,581			3,629		3,581		3,528		3,550
Non-interest expense	12,525			12,065		12,350		11,469		12,250
Income before income taxes	5,055			7,791		6,832		6,849		5,474
Provision for income taxes	898			1,383		1,253		1,231		951
Net income	$	4,157		6,408		5,579		5,618		4,523
Supplemental Income Statement Information
Amort/Accret income on acquired loans	$	74		249		144		61		66
Tax-equivalent net interest income	$	13,989		16,257		15,495		15,217		14,273
Per Share Data
Dividends per share	$	0.21		0.21		0.20		0.20		0.20
Basic earnings per common share	$	0.37		0.57		0.49		0.49		0.38
Diluted earnings per common share	$	0.37		0.57		0.49		0.49		0.38
Book value per share	$	18.22		17.82		17.31		17.84		18.14
Tangible book value per share	$	12.86		12.48		11.97		12.53		12.84
Weighted average common shares outstanding:
Basic	11,189,170			11,211,328		11,284,225		11,337,805		11,818,614
Diluted	11,189,170			11,211,328		11,284,225		11,337,805		11,818,614
Shares outstanding at period end	11,202,063			11,259,080		11,293,639		11,374,515		11,401,503
Selected Financial Ratios
Return on average assets	0.88		%	1.34	%	1.15	%	1.18	%	0.96	%
Return on average equity	8.33		%	12.90	%	10.80	%	10.96	%	8.13	%
Return on average tangible common equity	11.85		%	18.59	%	15.30	%	15.52	%	11.11	%
Dividend payout ratio	56.76		%	36.84	%	40.82	%	40.82	%	52.63	%
Net interest margin (tax equivalent)	3.28		%	3.77	%	3.54	%	3.54	%	3.35	%
Efficiency ratio (tax equivalent)	71.29		%	60.67	%	64.74	%	61.18	%	68.73	%
Selected Balance Sheet Items
Cash and cash equivalents	$	31,876		22,701		29,460		31,815		19,941
Debt and equity securities	328,194			323,167		325,801		337,952		330,715
Loans:
Commercial and industrial	$	124,240		120,236		114,694		114,971		105,805
Commercial, secured by real estate	932,208			938,022		908,130		905,703		906,140
Residential real estate	303,051			305,575		316,669		315,930		328,034
Consumer	28,611			28,290		29,451		30,308		32,445
Agricultural	7,523			10,054		8,630		7,412		7,980
Other, including deposit overdrafts	62			81		52		81		45
Deferred net origination fees	(865)			(980)		(937)		(928)		(928)
Loans, gross	1,394,830			1,401,278		1,376,689		1,373,477		1,379,521
Less allowance for credit losses on loans	7,858			5,646		5,644		5,833		5,530
Loans, net	$	1,386,972		1,395,632		1,371,045		1,367,644		1,373,991

	Three Months Ended
	3/31/2023			12/31/2022		9/30/2022		6/30/2022		3/31/2022
Selected Balance Sheet Items, continued
Allowance for Credit Losses on Loans:
Allowance for credit losses, beginning of period	5,646			5,644		5,833		5,530		5,506
Cumulative change in accounting principle; adoption of ASU 2016-13	2,196			—		—		—		—
Provision for (recovery of) credit losses	32			(19)		(157)		377		49
Losses charged off	(36)			(60)		(53)		(116)		(37)
Recoveries	20			81		21		42		12
Allowance for credit losses, end of period	7,858			5,646		5,644		5,833		5,530
Total earning assets	$	1,736,829		1,726,902		1,714,196		1,722,853		1,712,115
Total assets	1,924,531			1,919,121		1,904,700		1,912,627		1,899,630
Total deposits	1,603,881			1,604,970		1,657,370		1,658,825		1,636,606
Short-term borrowings	76,500			71,455		4,000		5,000		24,746
Long-term debt	18,598			19,072		24,539		25,000		10,000
Total shareholders’ equity	204,072			200,675		195,439		202,960		206,875
Equity to assets ratio	10.60		%	10.46	%	10.26	%	10.61	%	10.89	%
Loans to deposits ratio	86.97		%	87.31	%	83.06	%	82.80	%	84.29	%
Tangible common equity (TCE)	$	144,006		140,498		135,149		142,557		146,360
Tangible common assets (TCA)	1,864,465			1,858,944		1,844,410		1,852,224		1,839,115
TCE/TCA	7.72		%	7.56	%	7.33	%	7.70	%	7.96	%
Selected Average Balance Sheet Items
Cash and cash equivalents	$	35,712		24,330		35,763		28,787		32,826
Debt and equity securities	327,123			323,195		338,299		338,149		340,666
Loans	$	1,389,385		1,383,809		1,384,520		1,375,710		1,376,926
Less allowance for credit losses on loans	7,522			5,647		5,830		5,532		5,503
Net loans	$	1,381,863		1,378,162		1,378,690		1,370,178		1,371,423
Total earning assets	$	1,729,008		1,711,524		1,736,031		1,722,503		1,727,335
Total assets	1,921,742			1,903,338		1,928,868		1,912,574		1,917,226
Total deposits	1,583,857			1,637,201		1,669,932		1,655,389		1,646,627
Short-term borrowings	94,591			21,433		5,728		18,263		12,503
Long-term debt	18,983			23,855		24,920		12,637		10,000
Total shareholders’ equity	202,419			197,014		205,051		205,645		225,725
Equity to assets ratio	10.53		%	10.35	%	10.63	%	10.75	%	11.77	%
Loans to deposits ratio	87.72		%	84.52	%	82.91	%	83.10	%	83.62	%
Asset Quality
Net charge-offs (recoveries)	$	16		(21)		32		74		25
Non-accrual loans	$	701		391		465		599		1,455
Loans past due 90 days or more and still accruing	—			39		—		—		—
Total nonperforming loans	$	701		430		465		599		1,455
Net charge-offs (recoveries) to average loans	0.00		%	(0.01)	%	0.01	%	0.02	%	0.01	%
Allowance for credit losses on loans to total loans	0.56		%	0.40	%	0.41	%	0.42	%	0.40	%
Nonperforming loans to total loans	0.05		%	0.03	%	0.03	%	0.04	%	0.11	%
Nonperforming assets to total assets	0.04		%	0.02	%	0.02	%	0.03	%	0.08	%
Assets Under Management
LCNB Corp. total assets	$	1,924,531		1,919,121		1,904,700		1,912,627		1,899,630
Trust and investments (fair value)	716,578			678,366		611,409		625,984		700,353
Mortgage loans serviced	142,167			148,412		145,317		153,557		152,271
Cash management	1,831			1,925		53,199		38,914		75,302
Brokerage accounts (fair value)	374,066			347,737		314,144		303,663		326,290
Total assets managed	$	3,159,173		3,095,561		3,028,769		3,034,745		3,153,846

LCNB CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

(Dollars in thousands)

	March 31, 2023 (Unaudited)		December 31, 2022
ASSETS:
Cash and due from banks	$	18,071	20,244
Interest-bearing demand deposits	13,805		2,457
Total cash and cash equivalents	31,876		22,701
Investment securities:
Equity securities with a readily determinable fair value, at fair value	1,286		2,273
Equity securities without a readily determinable fair value, at cost	2,099		2,099
Debt securities, available-for-sale, at fair value	293,427		289,850
Debt securities, held-to-maturity, at cost, net of allowance for credit losses	19,763		19,878
Federal Reserve Bank stock, at cost	4,652		4,652
Federal Home Loan Bank stock, at cost	6,967		4,415
Loans, net of allowance for credit losses	1,386,972		1,395,632
Premises and equipment, net	33,186		33,042
Operating leases right of use asset	6,093		6,248
Goodwill	59,221		59,221
Core deposit and other intangibles	1,665		1,827
Bank owned life insurance	44,569		44,298
Interest receivable	8,005		7,482
Other assets	24,750		25,503
TOTAL ASSETS	$	1,924,531	1,919,121
LIABILITIES:
Deposits:
Noninterest-bearing	$	473,345	505,824
Interest-bearing	1,130,536		1,099,146
Total deposits	1,603,881		1,604,970
Short-term borrowings	76,500		71,455
Long-term debt	18,598		19,072
Operating lease liabilities	6,246		6,370
Allowance for credit losses on off-balance sheet credit exposures	482		—
Accrued interest and other liabilities	14,752		16,579
TOTAL LIABILITIES	1,720,459		1,718,446
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 14,320,561 and 14,270,550 shares at March 31, 2023 and December 31, 2022, respectively; outstanding 11,202,063 and 11,259,080 shares at March 31, 2023 and December 31, 2022, respectively	144,488		144,069
Retained earnings	139,115		139,249
Treasury shares at cost, 3,118,498 and 3,011,470 shares at March 31, 2023 and December 31, 2022, respectively	(54,527)		(52,689)
Accumulated other comprehensive loss, net of taxes	(25,004)		(29,954)
TOTAL SHAREHOLDERS' EQUITY	204,072		200,675
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	1,924,531	1,919,121

LCNB CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)

	Three Months Ended  March 31,
		2023	2022
INTEREST INCOME:
Interest and fees on loans		16,143	13,786
Dividends on equity securities with a readily determinable fair value		17	12
Dividends on equity securities without a readily determinable fair value		20	5
Interest on debt securities, taxable		1,343	1,095
Interest on debt securities, non-taxable		176	189
Other investments		219	35
TOTAL INTEREST INCOME		17,918	15,122
INTEREST EXPENSE:
Interest on deposits		2,456	739
Interest on short-term borrowings		1,304	86
Interest on long-term debt		216	74
TOTAL INTEREST EXPENSE		3,976	899
NET INTEREST INCOME		13,942	14,223
Provision for credit losses on loans		32	49
Provision for credit losses on debt securities, held-to-maturity		—	—
Recovery of credit losses on off-balance sheet credit exposures		(89)	—
TOTAL PROVISION FOR (RECOVERY OF) CREDIT LOSSES		(57)	49
NET INTEREST INCOME AFTER PROVISION FOR (RECOVERY OF) CREDIT LOSSES		13,999	14,174
NON-INTEREST INCOME:
Fiduciary income		1,740	1,695
Service charges and fees on deposit accounts		1,482	1,406
Bank owned life insurance income		271	265
Gains from sales of loans		6	124
Other operating income		82	60
TOTAL NON-INTEREST INCOME		3,581	3,550
NON-INTEREST EXPENSE:
Salaries and employee benefits		7,349	7,215
Equipment expenses		361	408
Occupancy expense, net		963	775
State financial institutions tax		397	436
Marketing		192	262
Amortization of intangibles		111	140
FDIC insurance premiums, net		215	126
Contracted services		641	610
Other non-interest expense		2,296	2,278
TOTAL NON-INTEREST EXPENSE		12,525	12,250
INCOME BEFORE INCOME TAXES		5,055	5,474
PROVISION FOR INCOME TAXES		898	951
NET INCOME		4,157	4,523
Dividends declared per common share		0.21	0.20

Earnings per common share:
Basic	0.37	0.38
Diluted	0.37	0.38
Weighted average common shares outstanding:
Basic	11,189,170	11,818,614
Diluted	11,189,170	11,818,614