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
	03-31-2024		12-31-2023		09-30-2023		06-30-2023		03-31-2023
Condensed Income Statement
Interest income	$	24,758	$	23,310	19,668		18,703		17,918
Interest expense	10,863		8,651		6,097		4,526		3,976
Net interest income	13,895		14,659		13,571		14,177		13,942
Provision for (recovery of) credit losses	125		2,218		(114)		30		(57)
Net interest income after provision for (recovery of) credit losses	13,770		12,441		13,685		14,147		13,999
Non-interest income	3,929		4,606		3,578		3,646		3,581
Non-interest expense	15,472		17,576		12,244		12,078		12,525
Income (loss) before income taxes	2,227		(529)		5,019		5,715		5,055
Provision for (benefit from) income taxes	312		(236)		949		1,021		898
Net income (loss)	$	1,915	$	(293)	$	4,070	$	4,694	4,157
Supplemental Income Statement Information
Amort/Accret income on acquired loans	$	776	$	410	—		—		75
Tax-equivalent net interest income	$	13,933	$	14,703	13,617		14,223		13,989
Per Share Data
Dividends per share	$	0.22	$	0.22	0.21		0.21		0.21
Basic earnings (loss) per common share	$	0.15	$	(0.02)	0.37		0.42		0.37
Diluted earnings (loss) per common share	$	0.15	$	(0.02)	0.37		0.42		0.37
Book value per share	$	17.67	$	17.86	18.10		18.20		18.22
Tangible book value per share	$	11.03	$	11.16	12.72		12.81		12.86
Weighted average common shares outstanding:
Basic	13,112,302		12,378,289		11,038,720		11,056,308		11,189,170
Diluted	13,112,302		12,378,289		11,038,720		11,056,308		11,189,170
Shares outstanding at period end	13,224,276		13,173,569		11,123,382		11,116,080		11,202,063
Selected Financial Ratios
Return on average assets	0.34%		(0.05)%		0.82%		0.98%		0.88%
Return on average equity	3.28%		(0.53)%		7.92%		9.22%		8.33%
Return on average tangible common equity	4.39%		(0.72)%		11.21%		13.07%		11.85%
Dividend payout ratio	146.67%		NM		56.76%		50.00%		56.76%
Net interest margin (tax equivalent)	2.72%		2.99%		3.04%		3.28%		3.28%
Efficiency ratio (tax equivalent)	86.62%		91.02%		71.21%		67.59%		71.29%
Selected Balance Sheet Items
Cash and cash equivalents	$	32,951	$	39,723	43,422		26,020		31,876
Debt and equity securities	306,775		318,723		309,094		314,763		328,194
Loans:
Commercial and industrial	$	122,229	$	120,411	125,751		127,553		124,240
Commercial, secured by real estate	1,099,601		1,107,556		981,787		961,173		932,208
Residential real estate	398,250		459,073		313,286		312,338		303,051
Consumer	24,137		25,578		27,018		29,007		28,611
Agricultural	12,647		10,952		11,278		9,955		7,523
Other, including deposit overdrafts	73		82		80		69		62
Deferred net origination fees	(583)		(181)		(796)		(844)		(865)
Loans, gross	1,656,354		1,723,471		1,458,404		1,439,251		1,394,830
Less allowance for credit losses	10,557		10,525		7,932		7,956		7,858
Loans, net	$	1,645,797	1,712,946		1,450,472		1,431,295		1,386,972
Loans held for sale	75,581		—		—		—		—
NM - Not Meaningful

	Three Months Ended
	03-31-2024			12-31-2023			09-30-2023		06-30-2023		03-31-2023
Selected Balance Sheet Items, continued
Allowance for Credit Losses on Loans:
Allowance for credit losses, beginning of period	$	10,525		7,932			7,956		7,858		5,646
Cumulative change in accounting principle - ASC 326	—			—			—		—		2,196
Fair value adjustment for purchased credit deteriorated loans	—			493			—		—		—
Provision for credit losses	77			2,203			9		131		32
Losses charged off	(78)			(126)			(57)		(49)		(36)
Recoveries	33			23			24		16		20
Allowance for credit losses, end of period	$	10,557		10,525			7,932		7,956		7,858
Total earning assets	$	1,971,130		$	2,045,382		1,787,796		1,756,157		$	1,736,829
Total assets	2,283,151			2,291,592			1,981,668		1,950,763		1,924,531
Total deposits	1,858,493			1,824,389			1,616,890		1,596,709		1,603,881
Short-term borrowings	10,000			97,395			30,000		112,289		76,500
Long-term debt	162,638			113,123			112,641		18,122		18,598
Total shareholders’ equity	233,663			235,303			201,349		202,316		204,072
Equity to assets ratio	10.23		%	10.27		%	10.16	%	10.37	%	10.60		%
Loans to deposits ratio	89.12		%	94.47		%	90.20	%	90.14	%	86.97		%
Tangible common equity (TCE)	$	145,850		$	146,999		141,508		142,362		144,006
Tangible common assets (TCA)	2,195,338			2,203,288			1,921,827		1,890,809		1,864,457
TCE/TCA	6.64		%	6.67		%	7.36	%	7.53	%	7.72		%
Selected Average Balance Sheet Items
Cash and cash equivalents	$	51,366		$	49,436		36,177		30,742		35,712
Debt and equity securities	310,771			310,274			313,669		321,537		327,123
Loans, including loans held for sale	$	1,722,568		$	1,622,911		1,451,153		1,405,939		1,389,385
Less allowance for credit losses on loans	10,523			8,826			7,958		7,860		7,522
Net loans	$	1,712,045		1,614,085			1,443,195		1,398,079		1,381,863
Total earning assets, including loans held for sale	$	2,056,656		$	1,952,121		1,775,713		1,737,256		1,729,008
Total assets	2,294,766			2,182,477			1,971,269		1,927,956		1,921,742
Total deposits	1,824,546			1,759,677			1,610,508		1,604,346		1,583,857
Short-term borrowings	65,052			64,899			63,018		79,485		94,591
Long-term debt	150,177			115,907			72,550		18,514		18,983
Total shareholders’ equity	235,119			220,678			203,967		204,085		202,419
Equity to assets ratio	10.25		%	10.11		%	10.35	%	10.59	%	10.53		%
Loans to deposits ratio	94.41		%	92.23		%	90.11	%	87.63	%	87.72		%
Asset Quality
Net charge-offs	$	45		$	102		33		33		16
Other real estate owned	—			—			—		—		—
Non-accrual loans	$	2,719		$	80		85		451		701
Loans past due 90 days or more and still accruing	524			72			176		256		—
Total nonperforming loans	$	3,243		152			261		707		701
Net charge-offs to average loans	0.01		%	0.02		%	0.01	%	0.01	%	0.00		%
Allowance for credit losses on loans to total loans	0.64		%	0.61		%	0.54	%	0.55	%	0.56		%
Nonperforming loans to total loans	0.20		%	0.01		%	0.02	%	0.05	%	0.05		%
Nonperforming assets to total assets	0.14		%	0.01		%	0.01	%	0.04	%	0.04		%

	Three Months Ended
	03-31-2024			12-31-2023			09-30-2023		06-30-2023		03-31-2023
Assets Under Management
LCNB Corp. total assets	$	2,283,151		2,291,592			1,981,668		1,950,763		1,924,531
Trust and investments (fair value)	890,800			806,770			731,342		744,149		716,578
Mortgage loans serviced	386,490			391,800			146,483		143,093		142,167
Cash management	13,314			2,375			2,445		2,668		1,831
Brokerage accounts (fair value)	411,211			392,390			368,854		384,889		374,066
Total assets managed	$	3,984,966		3,884,927			3,230,792		3,225,562		3,159,173
Reconciliation of Net Income Less Tax-Effected Merger-Related Costs
Net income (loss)	$	1,915		(293)			4,070		4,694		4,157
Merger expenses	775			3,914			302		415		25
Provision for credit losses on non-PCD loans	—			1,722			—		—		—
Tax effect	(90)			(1,102)			(3)		(63)		(4)
Adjusted net income	$	2,600		4,241			4,369		5,046		4,178
Adjusted basic and diluted earnings per share	$	0.20		$	0.34		0.40		0.45		0.37
Adjusted return on average assets	0.46		%	0.77		%	0.88	%	1.05	%	0.88	%
Adjusted return on average equity	4.45		%	7.62		%	8.50	%	9.92	%	8.37	%

	Three Months Ended March 31,												Three Months Ended December 31,
	2024						2023						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)	$	1,722,568		22,682	5.30	%	$	1,389,385		16,143	4.71	%	$	1,622,911		21,113	5.16	%
Interest-bearing demand deposits	23,317			324	5.59	%	12,500			157	5.09	%	18,936			280	5.87	%
Federal Reserve Bank stock	5,509			(4)	(0.29)	%	4,652			—	—	%	4,930			144	11.59	%
Federal Home Loan Bank stock	16,239			341	8.45	%	6,796			62	3.70	%	12,607			273	8.59	%
Investment securities:
Equity securities	4,995			40	3.22	%	4,337			37	3.46	%	4,415			62	5.57	%
Debt securities, taxable	265,164			1,232	1.87	%	286,369			1,343	1.90	%	265,736			1,273	1.90	%
Debt securities, non-taxable (2)	18,864			181	3.86	%	24,969			223	3.62	%	22,586			209	3.67	%
Total earnings assets	2,056,656			24,796	4.85	%	1,729,008			17,965	4.21	%	1,952,121			23,354	4.75	%
Non-earning assets	248,633						200,256						239,182
Allowance for credit losses	(10,523)						(7,522)						(8,826)
Total assets	$	2,294,766					$	1,921,742					$	2,182,477
Interest-bearing demand and money market deposits	$	643,199		3,917	2.45	%	$	505,382		1,245	1.00	%	$	574,349		2,710	1.87	%
Savings deposits	368,049			206	0.23	%	415,873			139	0.14	%	402,791			323	0.32	%
IRA and time certificates	370,130			4,067	4.42	%	185,297			1,072	2.35	%	302,434			3,321	4.36	%
Short-term borrowings	65,052			935	5.78	%	94,591			1,304	5.59	%	64,899			918	5.61	%
Long-term debt	150,177			1,738	4.65	%	18,983			216	4.61	%	115,907			1,379	4.72	%
Total interest-bearing liabilities	1,596,607			10,863	2.74	%	1,220,126			3,976	1.32	%	1,460,380			8,651	2.35	%
Demand deposits	443,168						477,305						480,103
Other liabilities	19,872						21,892						21,316
Equity	235,119						202,419						220,678
Total liabilities and equity	$	2,294,766					$	1,921,742					$	2,182,477
Net interest rate spread (3)					2.11	%					2.89	%					2.40	%
Net interest income and net interest margin on a taxable-equivalent basis (4)				13,933	2.72	%				13,989	3.28	%				14,703	2.99	%
Ratio of interest-earning assets to interest-bearing liabilities	128.81		%				141.71		%				133.67		%

(1)	Includes non-accrual loans and loans held for sale
(2)	Income from tax-exempt securities is included in interest income on a taxable-equivalent basis.  Interest income has been divided by a factor comprised of the complement of the incremental tax rate of 21%.
(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)
	March 31, 2024 (Unaudited)		December 31, 2023
ASSETS:
Cash and due from banks	$	24,950	36,535
Interest-bearing demand deposits	8,001		3,188
Total cash and cash equivalents	32,951		39,723
Investment securities:
Equity securities with a readily determinable fair value, at fair value	1,334		1,336
Equity securities without a readily determinable fair value, at cost	3,666		3,666
Debt securities, available-for-sale, at fair value	262,786		276,601
Debt securities, held-to-maturity, at cost, net of allowance for credit losses of $5 and $5 at March 31, 2024 and December 31, 2023, respectively	16,746		16,858
Federal Reserve Bank stock, at cost	5,774		5,086
Federal Home Loan Bank stock, at cost	16,469		15,176
Loans, net of allowance for credit losses of $10,557 and 10,525 at March 31, 2024 and December 31, 2023, respectively	1,645,797		1,712,946
Loans held for sale	75,581		—
Premises and equipment, net	36,690		36,302
Operating lease right-of-use assets	5,838		6,000
Goodwill	79,559		79,509
Core deposit and other intangibles, net	8,903		9,494
Bank-owned life insurance	50,165		49,847
Interest receivable	9,115		8,405
Other assets, net	31,777		30,643
TOTAL ASSETS	$	2,283,151	2,291,592
LIABILITIES:
Deposits:
Noninterest-bearing	$	435,580	462,267
Interest-bearing	1,422,913		1,362,122
Total deposits	1,858,493		1,824,389
Short-term borrowings	10,000		97,395
Long-term debt	162,638		113,123
Operating lease liabilities	6,123		6,261
Accrued interest and other liabilities	12,234		15,121
TOTAL LIABILITIES	2,049,488		2,056,289
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 16,435,659 and 16,384,952 shares at March 31, 2024 and December 31, 2023, respectively; outstanding 13,224,276 and 13,173,569 shares at March 31, 2024 and December 31, 2023, respectively	174,082		173,637
Retained earnings	139,050		140,017
Treasury shares at cost, 3,211,383 and 3,211,383 shares at March 31, 2024 and December 31, 2023, respectively	(56,015)		(56,015)
Accumulated other comprehensive loss, net of taxes	(23,454)		(22,336)
TOTAL SHAREHOLDERS' EQUITY	233,663		235,303
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	2,283,151	$	2,291,592

Exhibit 99.2

LCNB CORP. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Dollars in thousands, except per share data) (Unaudited)
	Three Months Ended March 31,
	2024		2023
INTEREST INCOME:
Interest and fees on loans	$	22,682	16,143
Dividends on equity securities:
With a readily determinable fair value	9		17
Without a readily determinable fair value	31		20
Interest on debt securities:
Taxable	1,232		1,343
Non-taxable	143		176
Other investments	661		219
TOTAL INTEREST INCOME	24,758		17,918
INTEREST EXPENSE:
Interest on deposits	8,190		2,456
Interest on short-term borrowings	935		1,304
Interest on long-term debt	1,738		216
TOTAL INTEREST EXPENSE	10,863		3,976
NET INTEREST INCOME	13,895		13,942
PROVISION FOR (RECOVERY OF) CREDIT LOSSES	125		(57)
NET INTEREST INCOME AFTER PROVISION FOR (RECOVERY OF) CREDIT LOSSES	13,770		13,999
NON-INTEREST INCOME:
Fiduciary income	1,973		1,740
Service charges and fees on deposit accounts	1,384		1,482
Net gains from sales of debt securities, available-for-sale	(214)		—
Bank-owned life insurance income	318		271
Net gains from sales of loans	522		6
Other operating income	(54)		82
TOTAL NON-INTEREST INCOME	3,929		3,581
NON-INTEREST EXPENSE:
Salaries and employee benefits	8,554		7,349
Equipment expenses	390		361
Occupancy expense, net	1,005		963
State financial institutions tax	428		397
Marketing	174		192
Amortization of intangibles	236		111
FDIC insurance premiums, net	504		215
Contracted services	784		641
Merger-related expenses	775		25
Other non-interest expense	2,622		2,271
TOTAL NON-INTEREST EXPENSE	15,472		12,525
INCOME BEFORE INCOME TAXES	2,227		5,055
PROVISION FOR INCOME TAXES	312		898
NET INCOME	$	1,915	4,157
Earnings per common share:
Basic	$	0.15	0.37
Diluted	$	0.15	0.37
Weighted average common shares outstanding:
Basic	13,112,302		11,189,170
Diluted	13,112,302		11,189,170