Attached files
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8-K - 8-K - LCNB CORP | lcnb-x8xk2014qr4xearningsr.htm |
EX-99.1 - EXHIBIT 99.1 - LCNB CORP | exhibit9912014qr4.htm |
Exhibit 99.2
LCNB Corp. and Subsidiaries
Financial Highlights
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended | Year Ended | |||||||||||||||||||||
12/31/2014 | 9/30/2014 | 6/30/2014 | 3/31/2014 | 12/31/2013 | 12/31/2014 | 12/31/2013 | ||||||||||||||||
Condensed Income Statement | ||||||||||||||||||||||
Interest income | $ | 10,367 | $ | 9,906 | 9,926 | 9,278 | 8,566 | 39,477 | 33,497 | |||||||||||||
Interest expense | 844 | 911 | 920 | 915 | 927 | 3,590 | 4,065 | |||||||||||||||
Net interest income | 9,523 | 8,995 | 9,006 | 8,363 | 7,639 | 35,887 | 29,432 | |||||||||||||||
Provision for loan losses | 193 | 401 | 255 | 81 | 219 | 930 | 588 | |||||||||||||||
Net interest income after provision | 9,330 | 8,594 | 8,751 | 8,282 | 7,420 | 34,957 | 28,844 | |||||||||||||||
Non-interest income | 2,449 | 2,315 | 2,301 | 2,077 | 2,358 | 9,142 | 9,090 | |||||||||||||||
Non-interest expense | 7,334 | 7,238 | 7,600 | 8,672 | 6,634 | 30,844 | 26,212 | |||||||||||||||
Income before income taxes | 4,445 | 3,671 | 3,452 | 1,687 | 3,144 | 13,255 | 11,722 | |||||||||||||||
Provision for income taxes | 1,228 | 953 | 841 | 364 | 797 | 3,386 | 2,942 | |||||||||||||||
Net income | $ | 3,217 | 2,718 | 2,611 | 1,323 | 2,347 | 9,869 | 8,780 | ||||||||||||||
Per Share Data | ||||||||||||||||||||||
Dividends per share | $ | 0.16 | 0.16 | 0.16 | 0.16 | 0.16 | 0.64 | 0.64 | ||||||||||||||
Basic earnings per share | $ | 0.34 | 0.30 | 0.28 | 0.14 | 0.27 | 1.06 | 1.12 | ||||||||||||||
Diluted earnings per share | $ | 0.34 | 0.29 | 0.28 | 0.14 | 0.27 | 1.05 | 1.10 | ||||||||||||||
Book value per share | $ | 13.50 | 13.24 | 13.18 | 12.89 | 12.80 | 13.50 | 12.80 | ||||||||||||||
Tangible book value per share | $ | 10.08 | 9.80 | 9.71 | 9.44 | 11.02 | 10.08 | 11.02 | ||||||||||||||
Average basic shares outstanding | 9,306,382 | 9,299,691 | 9,293,382 | 9,288,400 | 8,623,134 | 9,297,019 | 7,852,514 | |||||||||||||||
Average diluted shares outstanding | 9,403,013 | 9,405,013 | 9,402,343 | 9,413,049 | 8,755,416 | 9,406,346 | 7,982,997 | |||||||||||||||
Shares outstanding at period end | 9,311,318 | 9,305,208 | 9,298,270 | 9,292,226 | 9,287,536 | 9,311,318 | 9,287,536 | |||||||||||||||
Selected Financial Ratios | ||||||||||||||||||||||
Return on average assets | 1.14 | % | 0.95 | % | 0.91 | % | 0.50 | % | 0.98 | % | 0.88 | % | 0.93 | % | ||||||||
Return on average equity | 10.18 | % | 8.71 | % | 8.60 | % | 4.47 | % | 8.48 | % | 8.04 | % | 9.02 | % | ||||||||
Dividend payout ratio | 47.06 | % | 53.33 | % | 57.14 | % | 114.29 | % | 59.26 | % | 60.38 | % | 57.14 | % | ||||||||
Net interest margin (tax equivalent) | 3.82 | % | 3.57 | % | 3.59 | % | 3.66 | % | 3.63 | % | 3.66 | % | 3.57 | % | ||||||||
Efficiency ratio (tax equivalent) | 59.48 | % | 61.97 | % | 65.26 | % | 80.50 | % | 64.24 | % | 66.44 | % | 65.78 | % | ||||||||
Selected Balance Sheet Items | ||||||||||||||||||||||
Investment securities and stock | $ | 314,074 | 322,341 | 357,567 | 331,771 | 279,021 | ||||||||||||||||
Loans | $ | 698,956 | 685,915 | 691,719 | 685,196 | 574,354 | ||||||||||||||||
Less allowance for loan losses | 3,121 | 3,298 | 3,394 | 3,370 | 3,588 | |||||||||||||||||
Net loans | $ | 695,835 | 682,617 | 688,325 | 681,826 | 570,766 | ||||||||||||||||
Total assets | $ | 1,108,066 | 1,123,356 | 1,151,109 | 1,133,508 | 932,338 | ||||||||||||||||
Total deposits | 946,205 | 956,633 | 986,824 | 984,514 | 785,761 | |||||||||||||||||
Short-term borrowings | 16,645 | 24,954 | 23,523 | 11,215 | 8,655 | |||||||||||||||||
Long-term debt | 11,357 | 11,432 | 11,506 | 11,580 | 12,102 | |||||||||||||||||
Total shareholders’ equity | 125,695 | 123,179 | 122,584 | 119,761 | 118,873 | |||||||||||||||||
Tangible common equity (TCE) | $ | 93,277 | 90,579 | 89,800 | 87,017 | 101,893 | ||||||||||||||||
Tangible common assets (TCA) | 1,075,648 | 1,090,756 | 1,118,325 | 1,100,764 | 915,358 | |||||||||||||||||
TCE/TA | 8.67 | % | 8.30 | % | 8.03 | % | 7.91 | % | 11.13 | % | ||||||||||||
Loans to deposit ratio | 73.87 | % | 71.70 | % | 70.10 | % | 69.60 | % | 73.10 | % | ||||||||||||
Equity to assets ratio | 11.34 | % | 10.97 | % | 10.65 | % | 10.57 | % | 12.75 | % | ||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||
12/31/2014 | 9/30/2014 | 6/30/2014 | 3/31/2014 | 12/31/2013 | 12/31/2014 | 12/31/2013 | ||||||||||||||||
Selected Average Balance Sheet Items | ||||||||||||||||||||||
Investment securities and stock | $ | 311,395 | 348,469 | 347,837 | 302,791 | 284,630 | 327,704 | 295,812 | ||||||||||||||
Loans | $ | 694,185 | 688,972 | 685,581 | 647,535 | 573,421 | 679,223 | 555,602 | ||||||||||||||
Less allowance for loan losses | 3,075 | 3,288 | 3,367 | 3,372 | 3,428 | 3,275 | 3,401 | |||||||||||||||
Net loans | $ | 691,110 | 685,684 | 682,214 | 644,163 | 569,993 | 675,948 | 552,201 | ||||||||||||||
Total assets | $ | 1,123,949 | 1,140,922 | 1,145,300 | 1,071,198 | 953,929 | 1,120,515 | 944,659 | ||||||||||||||
Total deposits | 967,505 | 976,109 | 991,809 | 922,051 | 809,264 | 964,526 | 812,037 | |||||||||||||||
Short-term borrowings | 12,217 | 22,547 | 13,601 | 10,814 | 17,387 | 14,820 | 16,912 | |||||||||||||||
Long-term debt | 11,382 | 11,457 | 11,531 | 11,821 | 12,218 | 11,546 | 12,768 | |||||||||||||||
Total shareholders’ equity | 125,302 | 123,807 | 121,725 | 119,959 | 109,860 | 122,716 | 97,349 | |||||||||||||||
Asset Quality | ||||||||||||||||||||||
Net charge-offs | $ | 370 | 496 | 232 | 299 | 54 | ||||||||||||||||
Other real estate owned | 1,370 | 1,460 | 1,906 | 1,799 | 1,463 | |||||||||||||||||
Non-accrual loans | 5,625 | 6,264 | 6,243 | 5,374 | 2,961 | |||||||||||||||||
Loans past due 90 days or more and still accruing | 96 | 111 | 130 | 825 | 250 | |||||||||||||||||
Total nonperforming loans | $ | 5,721 | 6,375 | 6,373 | 6,199 | 3,211 | ||||||||||||||||
Net charge-offs to average loans | 0.21 | % | 0.29 | % | 0.14 | % | 0.19 | % | 0.04 | % | ||||||||||||
Allowance for loan losses to total loans | 0.45 | % | 0.48 | % | 0.49 | % | 0.49 | % | 0.62 | % | ||||||||||||
Nonperforming loans to total loans | 0.82 | % | 0.93 | % | 0.92 | % | 0.90 | % | 0.56 | % | ||||||||||||
Nonperforming assets to total assets | 0.64 | % | 0.70 | % | 0.72 | % | 0.71 | % | 0.50 | % | ||||||||||||
Assets Under Management | ||||||||||||||||||||||
LCNB Corp. total assets | $ | 1,108,066 | 1,123,356 | 1,151,109 | 1,133,508 | 932,338 | ||||||||||||||||
Trust and investments (fair value) | 258,266 | 255,409 | 267,857 | 262,666 | 257,088 | |||||||||||||||||
Mortgage loans serviced | 120,433 | 123,792 | 128,855 | 133,504 | 90,343 | |||||||||||||||||
Business cash management | 5,811 | 5,846 | 6,307 | 5,871 | 5,647 | |||||||||||||||||
Brokerage accounts (fair value) | 132,823 | 127,303 | 126,069 | 120,768 | 115,745 | |||||||||||||||||
Total assets managed | $ | 1,625,399 | 1,635,706 | 1,680,197 | 1,656,317 | 1,401,161 | ||||||||||||||||
Non-GAAP Financial Measures | ||||||||||||||||||||||
Net income | $ | 3,217 | 2,718 | 2,611 | 1,323 | 2,347 | 9,869 | 8,780 | ||||||||||||||
Less (add) net gain (loss) on sales of securities, net of tax | 37 | 64 | 0 | (3 | ) | 203 | 98 | 700 | ||||||||||||||
Add merger-related expenses, net of tax | 26 | 3 | 46 | 853 | 71 | 928 | 981 | |||||||||||||||
Core net income | $ | 3,206 | 2,657 | 2,657 | 2,179 | 2,215 | 10,699 | 9,061 | ||||||||||||||
Basic core earnings per share | $ | 0.34 | 0.29 | 0.29 | 0.23 | 0.26 | 1.15 | 1.15 | ||||||||||||||
Diluted core earnings per share | $ | 0.34 | 0.28 | 0.28 | 0.23 | 0.25 | 1.14 | 1.14 | ||||||||||||||
Adjusted return on average assets | 1.13 | % | 0.92 | % | 0.93 | % | 0.82 | % | 0.92 | % | 0.95 | % | 0.96 | % | ||||||||
Adjusted return on average equity | 10.06 | % | 8.44 | % | 8.67 | % | 7.32 | % | 7.97 | % | 8.67 | % | 9.29 | % | ||||||||
Core efficiency ratio (tax equivalent) | 59.48 | % | 62.46 | % | 64.66 | % | 68.48 | % | 65.14 | % | 63.62 | % | 63.88 | % | ||||||||
LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
At December 31,
(Dollars in thousands)
2014 (Unaudited) | 2013 | ||||||
ASSETS: | |||||||
Cash and due from banks | $ | 14,235 | 10,410 | ||||
Interest-bearing demand deposits | 1,610 | 4,278 | |||||
Total cash and cash equivalents | 15,845 | 14,688 | |||||
Investment securities: | |||||||
Available-for-sale, at fair value | 285,365 | 258,241 | |||||
Held-to-maturity, at cost | 22,725 | 16,323 | |||||
Federal Reserve Bank stock, at cost | 2,346 | 1,603 | |||||
Federal Home Loan Bank stock, at cost | 3,638 | 2,854 | |||||
Loans, net | 695,835 | 570,766 | |||||
Premises and equipment, net | 20,733 | 19,897 | |||||
Goodwill | 27,638 | 14,186 | |||||
Bank owned life insurance | 21,936 | 21,280 | |||||
Other assets | 12,005 | 12,500 | |||||
TOTAL ASSETS | $ | 1,108,066 | 932,338 | ||||
LIABILITIES: | |||||||
Deposits: | |||||||
Noninterest-bearing | $ | 213,303 | 164,912 | ||||
Interest-bearing | 732,902 | 620,849 | |||||
Total deposits | 946,205 | 785,761 | |||||
Short-term borrowings | 16,645 | 8,655 | |||||
Long-term debt | 11,357 | 12,102 | |||||
Accrued interest and other liabilities | 8,164 | 6,947 | |||||
TOTAL LIABILITIES | 982,371 | 813,465 | |||||
SHAREHOLDERS' EQUITY: | |||||||
Preferred shares – no par value, authorized 1,000,000 shares, none outstanding | — | — | |||||
Common shares – no par value, authorized 12,000,000 shares, issued 10,064,945 and 10,041,163 shares at December 31, 2014 and 2013, respectively | 67,181 | 66,785 | |||||
Retained earnings | 69,394 | 65,475 | |||||
Treasury shares at cost, 753,627 shares at December 31, 2014 and 2013 | (11,665 | ) | (11,665 | ) | |||
Accumulated other comprehensive loss, net of taxes | 785 | (1,722 | ) | ||||
TOTAL SHAREHOLDERS' EQUITY | 125,695 | 118,873 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 1,108,066 | 932,338 |
LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
INTEREST INCOME: | |||||||||||||
Interest and fees on loans | $ | 8,698 | 7,027 | 32,706 | 27,325 | ||||||||
Interest on investment securities – | |||||||||||||
Taxable | 856 | 813 | 3,757 | 3,369 | |||||||||
Non-taxable | 694 | 641 | 2,713 | 2,573 | |||||||||
Other short-term investments | 119 | 85 | 301 | 230 | |||||||||
TOTAL INTEREST INCOME | 10,367 | 8,566 | 39,477 | 33,497 | |||||||||
INTEREST EXPENSE: | |||||||||||||
Interest on deposits | 738 | 813 | 3,161 | 3,602 | |||||||||
Interest on short-term borrowings | 4 | 7 | 22 | 25 | |||||||||
Interest on long-term debt | 102 | 107 | 407 | 438 | |||||||||
TOTAL INTEREST EXPENSE | 844 | 927 | 3,590 | 4,065 | |||||||||
NET INTEREST INCOME | 9,523 | 7,639 | 35,887 | 29,432 | |||||||||
PROVISION FOR LOAN LOSSES | 193 | 219 | 930 | 588 | |||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 9,330 | 7,420 | 34,957 | 28,844 | |||||||||
NON-INTEREST INCOME: | |||||||||||||
Trust income | 832 | 708 | 2,903 | 2,518 | |||||||||
Service charges and fees on deposit accounts | 1,219 | 1,041 | 4,838 | 4,155 | |||||||||
Net gain (loss) on sales of securities | 56 | 307 | 149 | 1,060 | |||||||||
Bank owned life insurance income | 164 | 166 | 671 | 678 | |||||||||
Gains from sales of mortgage loans | 55 | 34 | 147 | 339 | |||||||||
Other operating income | 123 | 102 | 434 | 340 | |||||||||
TOTAL NON-INTEREST INCOME | 2,449 | 2,358 | 9,142 | 9,090 | |||||||||
NON-INTEREST EXPENSE: | |||||||||||||
Salaries and employee benefits | 3,866 | 3,704 | 15,762 | 13,487 | |||||||||
Equipment expenses | 340 | 324 | 1,316 | 1,232 | |||||||||
Occupancy expense, net | 526 | 513 | 2,232 | 2,042 | |||||||||
State franchise tax | 241 | 211 | 955 | 846 | |||||||||
Marketing | 162 | 115 | 703 | 561 | |||||||||
FDIC insurance premiums | 168 | 124 | 660 | 499 | |||||||||
Merger-related expenses | 34 | 107 | 1,400 | 1,433 | |||||||||
Other non-interest expense | 1,997 | 1,536 | 7,816 | 6,112 | |||||||||
TOTAL NON-INTEREST EXPENSE | 7,334 | 6,634 | 30,844 | 26,212 | |||||||||
INCOME BEFORE INCOME TAXES | 4,445 | 3,144 | 13,255 | 11,722 | |||||||||
PROVISION FOR INCOME TAXES | 1,228 | 797 | 3,386 | 2,942 | |||||||||
NET INCOME | $ | 3,217 | 2,347 | 9,869 | 8,780 | ||||||||
Dividends declared per common share | $ | 0.16 | 0.16 | 0.64 | 0.64 | ||||||||
Earnings per common share: | |||||||||||||
Basic | $ | 0.34 | 0.27 | 1.06 | 1.12 | ||||||||
Diluted | 0.34 | 0.27 | 1.05 | 1.10 | |||||||||
Weighted average common shares outstanding: | |||||||||||||
Basic | 9,306,382 | 8,623,134 | 9,297,019 | 7,852,514 | |||||||||
Diluted | 9,403,013 | 8,755,416 | 9,406,346 | 7,982,997 |