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										Twelve Months Ended
	12-31-2023		09-30-2023		06-30-2023		03-31-2023		12-31-2022		12-31-2023	12-31-2022
Condensed Income Statement
Interest income	$	23,310	$	19,668	18,703		17,918		17,719		79,599	65,753
Interest expense	8,651		6,097		4,526		3,976		1,511		23,250	4,711
Net interest income	14,659		13,571		14,177		13,942		16,208		56,349	61,042
Provision for (recovery of) credit losses	2,218		(114)		30		(57)		(19)		2,077	250
Net interest income after provision for (recovery of) credit losses	12,441		13,685		14,147		13,999		16,227		54,272	60,792
Non-interest income	4,606		3,578		3,646		3,581		3,629		15,411	14,288
Non-interest expense	17,576		12,244		12,078		12,525		12,065		54,423	48,134
Income before income taxes	(529)		5,019		5,715		5,055		7,791		15,260	26,946
Provision for (benefit from) income taxes	(236)		949		1,021		898		1,383		2,632	4,818
Net income (loss)	$	(293)	$	4,070	$	4,694	$	4,157	6,408		12,628	22,128
Supplemental Income Statement Information
Amort/Accret income on acquired loans	$	410	$	—	—		75		249		484	520
Tax-equivalent net interest income	$	14,703	$	13,617	14,223		13,989		16,257		56,532	61,242
Per Share Data
Dividends per share	$	0.22	$	0.21	0.21		0.21		0.21		0.85	0.81
Basic earnings (loss) per common share	$	(0.02)	$	0.37	0.42		0.37		0.57		1.10	1.93
Diluted earnings (loss) per common share	$	(0.02)	$	0.37	0.42		0.37		0.57		1.10	1.93
Book value per share	$	17.86	$	18.10	18.20		18.22		17.82		17.86	17.82
Tangible book value per share	$	11.16	$	12.72	12.81		12.86		12.48		11.16	12.48
Weighted average common shares outstanding:
Basic	12,378,289		11,038,720		11,056,308		11,189,170		11,211,328		11,417,857	11,410,981
Diluted	12,378,289		11,038,720		11,056,308		11,189,170		11,211,328		11,417,857	11,410,981
Shares outstanding at period end	13,173,569		11,123,382		11,116,080		11,202,063		11,259,080		13,173,569	11,259,080
Selected Financial Ratios
Return on average assets	(0.05)%		0.82%		0.98%		0.88%		1.34%		0.63%	1.16%
Return on average equity	(0.53)%		7.92%		9.22%		8.33%		12.90%		6.08%	10.62%
Return on average tangible common equity	(0.72)%		11.21%		13.07%		11.85%		18.59%		8.54%	14.96%
Dividend payout ratio	NM		56.76%		50.00%		56.76%		36.84%		77.27%	41.97%
Net interest margin (tax equivalent)	2.99%		3.04%		3.28%		3.28%		3.77%		3.14%	3.55%
Efficiency ratio (tax equivalent)	91.02%		71.21%		67.59%		71.29%		60.67%		75.65%	63.73%
Selected Balance Sheet Items
Cash and cash equivalents	$	39,723	$	43,422	26,020		31,876		22,701
Debt and equity securities	318,723		309,094		314,763		328,194		323,167
Loans:
Commercial and industrial	$	120,411	$	125,751	127,553		124,240		120,236
Commercial, secured by real estate	1,107,556		981,787		961,173		932,208		938,022
Residential real estate	459,073		313,286		312,338		303,051		305,575
Consumer	25,578		27,018		29,007		28,611		28,290
Agricultural	10,952		11,278		9,955		7,523		10,054
Other, including deposit overdrafts	82		80		69		62		81
Deferred net origination fees	(181)		(796)		(844)		(865)		(980)
Loans, gross	1,723,471		1,458,404		1,439,251		1,394,830		1,401,278
Less allowance for credit losses on loans	10,525		7,932		7,956		7,858		5,646
Loans, net	$	1,712,946	$	1,450,472	$	1,431,295	$	1,386,972	$	1,395,632
"NM" - Not Meaningful

	Three Months Ended													Twelve Months Ended
	12-31-2023			09-30-2023			06-30-2023		03-31-2023		12-31-2022			12-31-2023			12-31-2022
Selected Balance Sheet Items, continued
Allowance for Credit Losses on Loans:
Allowance for credit losses, beginning of period	$	7,932		7,956			7,858		5,646		5,644
Cumulative change in accounting principle - ASC 326	—			—			—		2,196		—
Fair value adjustment for purchased credit deteriorated loans	493			—			—		—		—
Provision for (recovery of) credit losses	2,203			9			131		32		(19)
Losses charged off	(126)			(57)			(49)		(36)		(60)
Recoveries	23			24			16		20		81
Allowance for credit losses, end of period	$	10,525		7,932			7,956		7,858		5,646
Total earning assets	$	2,045,382		$	1,787,796		1,756,157		1,736,829		$	1,726,902
Total assets	2,291,592			1,981,668			1,950,763		1,924,808		1,919,398
Total deposits	1,824,389			1,616,890			1,596,709		1,603,881		1,604,970
Short-term borrowings	97,395			30,000			112,289		76,500		71,455
Long-term debt	113,123			112,641			18,122		18,598		19,072
Total shareholders’ equity	235,303			201,349			202,316		204,072		200,675
Equity to assets ratio	10.27		%	10.16		%	10.37	%	10.60	%	10.46		%
Loans to deposits ratio	94.47		%	90.20		%	90.14	%	86.97	%	87.31		%
Tangible common equity (TCE)	$	146,999		$	141,508		142,362		144,006		140,489
Tangible common assets (TCA)	2,203,288			1,921,827			1,890,809		1,864,742		1,859,212
TCE/TCA	6.67		%	7.36		%	7.53	%	7.72	%	7.56		%
Selected Average Balance Sheet Items
Cash and cash equivalents	$	49,436		$	36,177		30,742		35,712		$	24,330		$	38,040		$	30,364
Debt and equity securities	310,274			313,669			321,537		327,123		323,195			318,082			335,051
Loans	$	1,622,911		$	1,451,153		1,405,939		1,389,385		$	1,383,809		$	1,467,981		$	1,380,272
Less allowance for credit losses on loans	8,826			7,958			7,860		7,522		5,647			8,046			5,629
Net loans	$	1,614,085		1,443,195			1,398,079		1,381,863		$	1,378,162		$	1,459,935		$	1,374,643
Total earning assets	$	1,952,121		$	1,775,713		1,737,256		1,729,008		1,711,524			1,799,102			1,724,350
Total assets	2,182,477			1,971,269			1,927,956		1,922,031		1,903,624			2,001,565			1,915,716
Total deposits	1,759,677			1,610,508			1,604,346		1,583,857		1,637,201			1,640,000			1,652,309
Short-term borrowings	64,899			63,018			79,485		94,591		21,433			75,383			14,482
Long-term debt	115,907			72,550			18,514		18,983		23,855			56,798			17,910
Total shareholders’ equity	220,678			203,967			204,085		202,419		197,014			207,827			208,271
Equity to assets ratio	10.11		%	10.35		%	10.59	%	10.53	%	10.35		%	10.38		%	10.87		%
Loans to deposits ratio	92.23		%	90.11		%	87.63	%	87.72	%	84.52		%	89.51		%	83.54		%
Asset Quality
Net charge-offs (recoveries)	$	102		$	33		33		16		(21)			184			110
Other real estate owned	—			—			—		—		—			—			—
Non-accrual loans	$	80		$	85		451		701		391			80			391
Loans past due 90 days or more and still accruing	72			176			256		—		39			72			39
Total nonperforming loans	$	152		261			707		701		430			152			430
Net charge-offs (recoveries) to average loans	0.02		%	0.01		%	0.01	%	0.00	%	(0.01)		%	0.01		%	0.01		%
Allowance for credit losses on loans to total loans	0.61		%	0.54		%	0.55	%	0.56	%	0.40		%
Nonperforming loans to total loans	0.01		%	0.02		%	0.05	%	0.05	%	0.03		%
Nonperforming assets to total assets	0.01		%	0.01		%	0.04	%	0.04	%	0.02		%

	Three Months Ended												Twelve Months Ended
	12-31-2023			09-30-2023			06-30-2023		03-31-2023		12-31-2022		12-31-2023		12-31-2022
Assets Under Management
LCNB Corp. total assets	$	2,291,592		1,981,668			1,950,763		1,924,808		1,919,398
Trust and investments (fair value)	806,770			731,342			744,149		716,578		678,366
Mortgage loans serviced	391,800			146,483			143,093		142,167		148,412
Cash management	2,375			2,445			2,668		1,831		1,925
Brokerage accounts (fair value)	392,390			368,854			384,889		374,066		347,737
Total assets managed	3,884,927			3,230,792			3,225,562		3,159,450		3,095,838
Reconciliation of Net Income Less Tax-Effected Merger-Related Costs
Net income (loss)	$	(293)		4,070			4,694		4,157		6,408		12,628		22,128
Merger expenses	3,914			302			415		25		—		4,656		—
Provision for credit losses on non-PCD loans	1,722			—			—		—		—		1,722		—
Tax effect	(1,102)			(3)			(63)		(4)		—		(1,172)		—
Adjusted net income	$	4,241		4,369			5,046		4,178		6,408		17,834		22,128
Adjusted basic and diluted earnings per share	$	0.34		$	0.40		0.45		0.37		0.57		1.56		1.93
Adjusted return on average assets	0.77		%	0.88		%	1.05	%	0.88	%	1.34	%	0.89	%	1.16	%
Adjusted return on average equity	7.62		%	8.50		%	9.92	%	8.37	%	12.90	%	8.58	%	10.62	%

	Three Months Ended December 31,												Three Months Ended September 30,
	2023						2022						2023
	Average Outstanding Balance			Interest Earned/ Paid	Average Yield/ Rate		Average Outstanding Balance			Interest Earned/ Paid	Average Yield/ Rate		Average Outstanding Balance			Interest Earned/ Paid	Average Yield/ Rate
Loans (1)	$	1,622,911		21,113	5.16	%	$	1,383,809		15,887	4.55	%	$	1,451,153		17,875	4.89	%
Interest-bearing demand deposits	18,936			280	5.87	%	4,520			56	4.92	%	10,891			152	5.54	%
Federal Reserve Bank stock	4,930			144	11.59	%	4,652			140	11.94	%	4,652			—	—	%
Federal Home Loan Bank stock	12,607			273	8.59	%	4,106			66	6.38	%	7,007			134	7.59	%
Investment securities:
Equity securities	4,415			62	5.57	%	4,353			29	2.64	%	3,382			38	4.46	%
Debt securities, taxable	265,736			1,273	1.90	%	283,442			1,355	1.90	%	274,494			1,296	1.87	%
Debt securities, non-taxable (2)	22,586			209	3.67	%	26,642			235	3.50	%	24,134			219	3.60	%
Total earnings assets	1,952,121			23,354	4.75	%	1,711,524			17,768	4.12	%	1,775,713			19,714	4.40	%
Non-earning assets	239,182						197,747						203,514
Allowance for credit losses	(8,826)						(5,647)						(7,958)
Total assets	$	2,182,477					$	1,903,624					$	1,971,269
Interest-bearing demand and money market deposits	$	574,349		2,710	1.87	%	$	520,158		610	0.47	%	$	541,487		2,298	1.68	%
Savings deposits	402,791			323	0.32	%	444,632			153	0.14	%	379,515			129	0.13	%
IRA and time certificates	302,434			3,321	4.36	%	150,175			426	1.13	%	230,030			1,999	3.45	%
Short-term borrowings	64,899			918	5.61	%	21,433			96	1.78	%	63,018			830	5.23	%
Long-term debt	115,907			1,379	4.72	%	23,855			226	3.76	%	72,550			841	4.60	%
Total interest-bearing liabilities	1,460,380			8,651	2.35	%	1,160,253			1,511	0.52	%	1,286,600			6,097	1.88	%
Demand deposits	480,103						522,236						459,476
Other liabilities	21,316						24,121						21,226
Equity	220,678						197,014						203,967
Total liabilities and equity	$	2,182,477					$	1,903,624					$	1,971,269
Net interest rate spread (3)					2.40	%					3.60	%					2.52	%
Net interest income and net interest margin on a taxable-equivalent basis (4)				14,703	2.99	%				16,257	3.77	%				13,617	3.04	%
Ratio of interest-earning assets to interest-bearing liabilities	133.67		%				147.51		%				138.02		%

(1)	Includes non-accrual loans.
(2)	Income from tax-exempt securities is included in interest income on a taxable-equivalent basis.  Interest income has been divided
(3)	The net interest spread is the difference between the average rate on total interest-earning assets and interest-bearing liabilities.
(4)	The net interest margin is the taxable-equivalent net interest income divided by average interest-earning assets.

Exhibit 99.2

LCNB CORP. AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS (Dollars in thousands)
	December 31, 2023 (Unaudited)		December 31, 2022
ASSETS:
Cash and due from banks	$	36,535	20,244
Interest-bearing demand deposits	3,188		2,457
Total cash and cash equivalents	39,723		22,701
Investment securities:
Equity securities with a readily determinable fair value, at fair value	1,336		2,273
Equity securities without a readily determinable fair value, at cost	3,666		2,099
Debt securities, available-for-sale, at fair value	276,601		289,850
Debt securities, held-to-maturity, at cost, net	16,858		19,878
Federal Reserve Bank stock, at cost	5,086		4,652
Federal Home Loan Bank stock, at cost	15,176		4,415
Loans, net	1,712,946		1,395,632
Premises and equipment, net	36,302		33,042
Operating lease right-of-use assets	6,000		6,525
Goodwill	79,509		59,221
Core deposit and other intangibles, net	9,494		1,827
Bank-owned life insurance	49,847		44,298
Interest receivable	8,405		7,482
Other assets, net	30,643		25,503
TOTAL ASSETS	$	2,291,592	1,919,398
LIABILITIES:
Deposits:
Noninterest-bearing	$	462,267	505,824
Interest-bearing	1,362,122		1,099,146
Total deposits	1,824,389		1,604,970
Short-term borrowings	97,395		71,455
Long-term debt	113,123		19,072
Operating lease liabilities	6,261		6,647
Accrued interest and other liabilities	15,121		16,579
TOTAL LIABILITIES	2,056,289		1,718,723
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 16,384,952 and 14,270,550 shares at December 31, 2023 and December 31, 2022, respectively; outstanding 13,173,569 and 11,259,080 shares at December 31, 2023 and December 31, 2022, respectively	173,637		144,069
Retained earnings	140,017		139,249
Treasury shares at cost, 3,211,383 and 3,011,470 shares at December 31, 2023 and December 31, 2022, respectively	(56,015)		(52,689)
Accumulated other comprehensive loss, net of taxes	(22,336)		(29,954)
TOTAL SHAREHOLDERS' EQUITY	235,303		200,675
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	2,291,592	$	1,919,398

Exhibit 99.2

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,
	2023		2022	2023	2022
INTEREST INCOME:
Interest and fees on loans	$	21,113	15,887	71,894	59,247
Dividends on equity securities:
With a readily determinable fair value	9		16	43	56
Without a readily determinable fair value	53		13	132	29
Interest on debt securities:
Taxable	1,273		1,355	5,235	5,027
Non-taxable	165		186	688	753
Other investments	697		262	1,607	641
TOTAL INTEREST INCOME	23,310		17,719	79,599	65,753
INTEREST EXPENSE:
Interest on deposits	6,354		1,189	16,571	3,682
Interest on short-term borrowings	918		96	4,060	416
Interest on long-term debt	1,379		226	2,619	613
TOTAL INTEREST EXPENSE	8,651		1,511	23,250	4,711
NET INTEREST INCOME	14,659		16,208	56,349	61,042
PROVISION FOR (RECOVERY OF) CREDIT LOSSES	2,218		(19)	2,077	250
NET INTEREST INCOME AFTER PROVISION FOR (RECOVERY OF) CREDIT LOSSES	12,441		16,227	54,272	60,792
NON-INTEREST INCOME:
Fiduciary income	1,828		1,617	7,091	6,468
Service charges and fees on deposit accounts	1,532		1,532	5,856	6,190
Bank-owned life insurance income	306		271	1,136	1,074
Gains from sales of loans	659		8	697	196
Other operating income	281		201	631	360
TOTAL NON-INTEREST INCOME	4,606		3,629	15,411	14,288
NON-INTEREST EXPENSE:
Salaries and employee benefits	7,654		7,192	29,108	28,483
Equipment expenses	441		395	1,616	1,629
Occupancy expense, net	934		767	3,301	3,067
State financial institutions tax	439		428	1,628	1,740
Marketing	366		339	1,101	1,184
Amortization of intangibles	196		113	532	478
FDIC insurance premiums, net	269		133	932	530
Contracted services	798		601	2,776	2,503
Other real estate owned, net	1		8	4	(866)
Merger-related expenses	3,914		—	4,656	—
Other non-interest expense	2,564		2,089	8,769	9,386
TOTAL NON-INTEREST EXPENSE	17,576		12,065	54,423	48,134
INCOME BEFORE INCOME TAXES	(529)		7,791	15,260	26,946
PROVISION FOR (BENEFIT FROM) INCOME TAXES	(236)		1,383	2,632	4,818
NET INCOME	$	(293)	6,408	12,628	22,128
Earnings per common share:
Basic	(0.02)		0.57	1.10	1.93
Diluted	(0.02)		0.57	1.10	1.93
Weighted average common shares outstanding:
Basic	12,378,289		11,211,328	11,417,857	11,410,981
Diluted	12,378,289		11,211,328	11,417,857	11,410,981