Attached files
file | filename |
---|---|
EX-99.1 - EXHIBIT 99.1 - LCNB CORP | exhibit9912015qr2.htm |
8-K - 8-K - LCNB CORP | lcnb-x8xk2015qr2xearningsr.htm |
Exhibit 99.2
LCNB Corp. and Subsidiaries
Financial Highlights
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended | Six Months Ended | |||||||||||||||||||||
6/30/2015 | 3/31/2015 | 12/31/2014 | 9/30/2014 | 6/30/2014 | 6/30/2015 | 6/30/2014 | ||||||||||||||||
Condensed Income Statement | ||||||||||||||||||||||
Interest income | $ | 11,348 | $ | 10,090 | 10,367 | 9,906 | 9,926 | 21,438 | 19,204 | |||||||||||||
Interest expense | 748 | 762 | 844 | 911 | 920 | 1,510 | 1,835 | |||||||||||||||
Net interest income | 10,600 | 9,328 | 9,523 | 8,995 | 9,006 | 19,928 | 17,369 | |||||||||||||||
Provision for loan losses | 677 | 69 | 193 | 401 | 255 | 746 | 336 | |||||||||||||||
Net interest income after provision | 9,923 | 9,259 | 9,330 | 8,594 | 8,751 | 19,182 | 17,033 | |||||||||||||||
Non-interest income | 2,831 | 2,306 | 2,449 | 2,315 | 2,301 | 5,137 | 4,378 | |||||||||||||||
Non-interest expense | 8,426 | 7,649 | 7,334 | 7,238 | 7,600 | 16,075 | 16,272 | |||||||||||||||
Income before income taxes | 4,328 | 3,916 | 4,445 | 3,671 | 3,452 | 8,244 | 5,139 | |||||||||||||||
Provision for income taxes | 1,205 | 1,082 | 1,228 | 953 | 841 | 2,287 | 1,205 | |||||||||||||||
Net income | $ | 3,123 | 2,834 | 3,217 | 2,718 | 2,611 | 5,957 | 3,934 | ||||||||||||||
Per Share Data | ||||||||||||||||||||||
Dividends per share | $ | 0.16 | 0.16 | 0.16 | 0.16 | 0.16 | 0.32 | 0.32 | ||||||||||||||
Basic earnings per share | $ | 0.33 | 0.30 | 0.34 | 0.30 | 0.28 | 0.63 | 0.42 | ||||||||||||||
Diluted earnings per share | $ | 0.32 | 0.30 | 0.34 | 0.29 | 0.28 | 0.62 | 0.42 | ||||||||||||||
Book value per share | $ | 13.91 | 13.80 | 13.50 | 13.24 | 13.18 | 13.91 | 13.18 | ||||||||||||||
Tangible book value per share | $ | 10.33 | 10.40 | 10.08 | 9.80 | 9.73 | 10.33 | 9.73 | ||||||||||||||
Average basic shares outstanding | 9,694,732 | 9,312,636 | 9,306,382 | 9,299,691 | 9,293,382 | 9,504,739 | 9,290,905 | |||||||||||||||
Average diluted shares outstanding | 9,804,728 | 9,410,774 | 9,403,013 | 9,405,013 | 9,402,343 | 9,609,050 | 9,407,964 | |||||||||||||||
Shares outstanding at period end | 9,896,904 | 9,317,583 | 9,311,318 | 9,305,208 | 9,298,270 | 9,896,904 | 9,298,270 | |||||||||||||||
Selected Financial Ratios | ||||||||||||||||||||||
Return on average assets | 1.03 | % | 1.02 | % | 1.14 | % | 0.95 | % | 0.91 | % | 1.02 | % | 0.72 | % | ||||||||
Return on average equity | 9.21 | % | 9.01 | % | 10.18 | % | 8.71 | % | 8.60 | % | 9.11 | % | 6.57 | % | ||||||||
Dividend payout ratio | 48.48 | % | 53.33 | % | 47.06 | % | 53.33 | % | 57.14 | % | 50.79 | % | 76.19 | % | ||||||||
Net interest margin (tax equivalent) | 3.95 | % | 3.83 | % | 3.82 | % | 3.57 | % | 3.59 | % | 3.89 | % | 3.62 | % | ||||||||
Efficiency ratio (tax equivalent) | 61.08 | % | 63.90 | % | 59.48 | % | 61.97 | % | 65.26 | % | 62.39 | % | 72.58 | % | ||||||||
Selected Balance Sheet Items | ||||||||||||||||||||||
Investment securities and stock | $ | 378,651 | 329,429 | 314,074 | 322,341 | 357,567 | ||||||||||||||||
Loans: | ||||||||||||||||||||||
Commercial and industrial | $ | 47,958 | 36,447 | 35,424 | 34,997 | 38,919 | ||||||||||||||||
Commercial, secured by real estate | 399,551 | 381,371 | 379,141 | 371,533 | 377,806 | |||||||||||||||||
Residential real estate | 273,249 | 255,926 | 254,087 | 248,113 | 243,966 | |||||||||||||||||
Consumer | 19,718 | 17,296 | 18,006 | 19,305 | 20,015 | |||||||||||||||||
Agricultural | 13,434 | 9,816 | 11,472 | 9,249 | 8,466 | |||||||||||||||||
Other, including deposit overdrafts | 638 | 678 | 680 | 2,651 | 2,594 | |||||||||||||||||
Deferred net origination costs (fees) | 188 | 151 | 146 | 67 | (47 | ) | ||||||||||||||||
Loans, gross | 754,736 | 701,685 | 698,956 | 685,915 | 691,719 | |||||||||||||||||
Less allowance for loan losses | 2,879 | 2,837 | 3,121 | 3,298 | 3,394 | |||||||||||||||||
Loans, net | $ | 751,857 | 698,848 | 695,835 | 682,617 | 688,325 | ||||||||||||||||
Total assets | $ | 1,249,363 | 1,129,497 | 1,108,066 | 1,123,356 | 1,151,109 | ||||||||||||||||
Total deposits | 1,084,033 | 973,725 | 946,205 | 956,633 | 986,824 | |||||||||||||||||
Short-term borrowings | 12,731 | 13,454 | 16,645 | 24,954 | 23,523 | |||||||||||||||||
Long-term debt | 6,085 | 6,153 | 11,357 | 11,432 | 11,506 | |||||||||||||||||
Total shareholders’ equity | 137,698 | 128,576 | 125,695 | 123,179 | 122,584 |
Three Months Ended | Six Months Ended | |||||||||||||||||||||
6/30/2015 | 3/31/2015 | 12/31/2014 | 9/30/2014 | 6/30/2014 | 6/30/2015 | 6/30/2014 | ||||||||||||||||
Selected Balance Sheet Items, continued | ||||||||||||||||||||||
Tangible common equity (TCE) | $ | 101,694 | 96,340 | 93,277 | 90,579 | 89,800 | ||||||||||||||||
Tangible common assets (TCA) | 1,213,359 | 1,097,261 | 1,075,648 | 1,090,756 | 1,118,325 | |||||||||||||||||
TCE/TA | 8.38 | % | 8.78 | % | 8.67 | % | 8.30 | % | 8.03 | % | ||||||||||||
Loans to deposit ratio | 69.62 | % | 72.06 | % | 73.87 | % | 71.70 | % | 70.10 | % | ||||||||||||
Equity to assets ratio | 11.02 | % | 11.38 | % | 11.34 | % | 10.97 | % | 10.65 | % | ||||||||||||
Selected Average Balance Sheet Items | ||||||||||||||||||||||
Investment securities and stock | $ | 360,750 | 313,279 | 311,395 | 348,469 | 347,837 | 337,146 | 325,438 | ||||||||||||||
Loans | $ | 737,021 | 699,959 | 694,185 | 688,972 | 685,581 | 718,592 | 666,663 | ||||||||||||||
Less allowance for loan losses | 2,865 | 2,870 | 3,075 | 3,288 | 3,367 | 2,868 | 3,369 | |||||||||||||||
Net loans | $ | 734,156 | 697,089 | 691,110 | 685,684 | 682,214 | 715,724 | 663,294 | ||||||||||||||
Total assets | $ | 1,220,938 | 1,125,326 | 1,123,949 | 1,140,922 | 1,145,300 | 1,173,307 | 1,108,454 | ||||||||||||||
Total deposits | 1,057,818 | 969,658 | 967,505 | 976,109 | 991,809 | 1,013,982 | 957,123 | |||||||||||||||
Short-term borrowings | 12,803 | 13,824 | 12,217 | 22,547 | 13,601 | 13,310 | 12,215 | |||||||||||||||
Long-term debt | 6,108 | 6,598 | 11,382 | 11,457 | 11,531 | 6,352 | 11,675 | |||||||||||||||
Total shareholders’ equity | 136,003 | 127,608 | 125,302 | 123,807 | 121,725 | 131,829 | 120,847 | |||||||||||||||
Asset Quality | ||||||||||||||||||||||
Net charge-offs | $ | 636 | 352 | 370 | 496 | 232 | ||||||||||||||||
Other real estate owned | 1,364 | 1,364 | 1,370 | 1,460 | 1,906 | |||||||||||||||||
Non-accrual loans | 1,961 | 3,972 | 5,599 | 6,264 | 6,243 | |||||||||||||||||
Loans past due 90 days or more and still accruing | 128 | 355 | 203 | 111 | 130 | |||||||||||||||||
Total nonperforming loans | $ | 2,089 | 4,327 | 5,802 | 6,375 | 6,373 | ||||||||||||||||
Net charge-offs to average loans | 0.35 | % | 0.20 | % | 0.21 | % | 0.29 | % | 0.14 | % | ||||||||||||
Allowance for loan losses to total loans | 0.38 | % | 0.40 | % | 0.45 | % | 0.48 | % | 0.49 | % | ||||||||||||
Nonperforming loans to total loans | 0.28 | % | 0.62 | % | 0.83 | % | 0.93 | % | 0.92 | % | ||||||||||||
Nonperforming assets to total assets | 0.28 | % | 0.50 | % | 0.65 | % | 0.70 | % | 0.72 | % | ||||||||||||
Assets Under Management | ||||||||||||||||||||||
LCNB Corp. total assets | $ | 1,249,363 | 1,129,497 | 1,108,066 | 1,123,356 | 1,151,109 | ||||||||||||||||
Trust and investments (fair value) | 272,209 | 264,122 | 258,266 | 255,409 | 267,857 | |||||||||||||||||
Mortgage loans serviced | 117,204 | 116,534 | 120,433 | 123,792 | 128,855 | |||||||||||||||||
Business cash management | 6,628 | 5,839 | 5,811 | 5,846 | 6,307 | |||||||||||||||||
Brokerage accounts (fair value) | 144,186 | 141,439 | 132,823 | 127,303 | 126,069 | |||||||||||||||||
Total assets managed | $ | 1,789,590 | 1,657,431 | 1,625,399 | 1,635,706 | 1,680,197 | ||||||||||||||||
Non-GAAP Financial Measures | ||||||||||||||||||||||
Accreted income on acquired loans | $ | 1,348 | 326 | 442 | 375 | 361 | 1,674 | 736 | ||||||||||||||
Net income | $ | 3,123 | 2,834 | 3,217 | 2,718 | 2,611 | 5,957 | 3,934 | ||||||||||||||
Less (add) net gain (loss) on sales of securities, net of tax | 146 | 73 | 37 | 64 | 0 | 219 | (3 | ) | ||||||||||||||
Add merger-related expenses, net of tax | 363 | 50 | 26 | 3 | 46 | 429 | 899 | |||||||||||||||
Core net income | $ | 3,340 | 2,811 | 3,206 | 2,657 | 2,657 | 6,167 | 4,836 | ||||||||||||||
Basic core earnings per share | $ | 0.34 | 0.30 | 0.34 | 0.29 | 0.29 | 0.65 | 0.52 | ||||||||||||||
Diluted core earnings per share | $ | 0.34 | 0.30 | 0.34 | 0.28 | 0.28 | 0.64 | 0.51 | ||||||||||||||
Adjusted return on average assets | 1.10 | % | 1.01 | % | 1.13 | % | 0.92 | % | 0.93 | % | 1.06 | % | 0.88 | % | ||||||||
Adjusted return on average equity | 9.85 | % | 8.86 | % | 10.06 | % | 8.44 | % | 8.67 | % | 9.43 | % | 8.02 | % | ||||||||
Core efficiency ratio (tax equivalent) | 58.23 | % | 63.91 | % | 59.48 | % | 62.46 | % | 64.66 | % | 60.88 | % | 66.50 | % |
LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
June 30, 2015 (Unaudited) | December 31, 2014 | ||||||
ASSETS: | |||||||
Cash and due from banks | $ | 21,195 | 14,235 | ||||
Interest-bearing demand deposits | 6,718 | 1,610 | |||||
Total cash and cash equivalents | 27,913 | 15,845 | |||||
Investment securities: | |||||||
Available-for-sale, at fair value | 347,860 | 285,365 | |||||
Held-to-maturity, at cost | 24,677 | 22,725 | |||||
Federal Reserve Bank stock, at cost | 2,476 | 2,346 | |||||
Federal Home Loan Bank stock, at cost | 3,638 | 3,638 | |||||
Loans, net | 751,857 | 695,835 | |||||
Premises and equipment, net | 22,591 | 20,733 | |||||
Goodwill | 30,187 | 27,638 | |||||
Core deposit and other intangibles | 5,817 | 4,780 | |||||
Bank owned life insurance | 22,250 | 21,936 | |||||
Other assets | 10,097 | 7,225 | |||||
TOTAL ASSETS | $ | 1,249,363 | 1,108,066 | ||||
LIABILITIES: | |||||||
Deposits: | |||||||
Noninterest-bearing | $ | 228,743 | 213,303 | ||||
Interest-bearing | 855,290 | 732,902 | |||||
Total deposits | 1,084,033 | 946,205 | |||||
Short-term borrowings | 12,731 | 16,645 | |||||
Long-term debt | 6,085 | 11,357 | |||||
Accrued interest and other liabilities | 8,816 | 8,164 | |||||
TOTAL LIABILITIES | 1,111,665 | 982,371 | |||||
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 10,650,531 and 10,064,945 shares at June 30, 2015 and December 31, 2014, respectively | 76,607 | 67,181 | |||||
Retained earnings | 72,281 | 69,394 | |||||
Treasury shares at cost, 753,627 shares at June 30, 2015 and December 31, 2014 | (11,665 | ) | (11,665 | ) | |||
Accumulated other comprehensive loss, net of taxes | 475 | 785 | |||||
TOTAL SHAREHOLDERS' EQUITY | 137,698 | 125,695 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 1,249,363 | 1,108,066 |
LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||
INTEREST INCOME: | ||||||||||||
Interest and fees on loans | $ | 9,492 | 8,144 | 18,032 | 15,840 | |||||||
Interest on investment securities – | ||||||||||||
Taxable | 1,033 | 1,026 | 1,889 | 1,917 | ||||||||
Non-taxable | 702 | 657 | 1,355 | 1,303 | ||||||||
Other short-term investments | 121 | 99 | 162 | 144 | ||||||||
TOTAL INTEREST INCOME | 11,348 | 9,926 | 21,438 | 19,204 | ||||||||
INTEREST EXPENSE: | ||||||||||||
Interest on deposits | 671 | 814 | 1,353 | 1,623 | ||||||||
Interest on short-term borrowings | 4 | 5 | 8 | 8 | ||||||||
Interest on long-term debt | 73 | 101 | 149 | 204 | ||||||||
TOTAL INTEREST EXPENSE | 748 | 920 | 1,510 | 1,835 | ||||||||
NET INTEREST INCOME | 10,600 | 9,006 | 19,928 | 17,369 | ||||||||
PROVISION FOR LOAN LOSSES | 677 | 255 | 746 | 336 | ||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 9,923 | 8,751 | 19,182 | 17,033 | ||||||||
NON-INTEREST INCOME: | ||||||||||||
Trust income | 852 | 728 | 1,652 | 1,383 | ||||||||
Service charges and fees on deposit accounts | 1,234 | 1,252 | 2,341 | 2,374 | ||||||||
Net gain (loss) on sales of securities | 221 | — | 332 | (4 | ) | |||||||
Bank owned life insurance income | 155 | 170 | 314 | 342 | ||||||||
Gains from sales of mortgage loans | 219 | 53 | 254 | 68 | ||||||||
Other operating income | 150 | 98 | 244 | 215 | ||||||||
TOTAL NON-INTEREST INCOME | 2,831 | 2,301 | 5,137 | 4,378 | ||||||||
NON-INTEREST EXPENSE: | ||||||||||||
Salaries and employee benefits | 4,381 | 3,956 | 8,671 | 7,874 | ||||||||
Equipment expenses | 302 | 345 | 590 | 639 | ||||||||
Occupancy expense, net | 584 | 514 | 1,179 | 1,165 | ||||||||
State franchise tax | 250 | 239 | 502 | 483 | ||||||||
Marketing | 220 | 197 | 383 | 329 | ||||||||
Amortization of intangibles | 175 | 148 | 321 | 274 | ||||||||
FDIC insurance premiums | 145 | 160 | 296 | 309 | ||||||||
Merger-related expenses | 522 | 70 | 592 | 1,362 | ||||||||
Other non-interest expense | 1,847 | 1,971 | 3,541 | 3,837 | ||||||||
TOTAL NON-INTEREST EXPENSE | 8,426 | 7,600 | 16,075 | 16,272 | ||||||||
INCOME BEFORE INCOME TAXES | 4,328 | 3,452 | 8,244 | 5,139 | ||||||||
PROVISION FOR INCOME TAXES | 1,205 | 841 | 2,287 | 1,205 | ||||||||
NET INCOME | $ | 3,123 | 2,611 | 5,957 | 3,934 | |||||||
Dividends declared per common share | $ | 0.16 | 0.16 | 0.32 | 0.32 | |||||||
Earnings per common share: | ||||||||||||
Basic | $ | 0.33 | 0.28 | 0.63 | 0.42 | |||||||
Diluted | 0.32 | 0.28 | 0.62 | 0.42 | ||||||||
Weighted average common shares outstanding: | ||||||||||||
Basic | 9,694,732 | 9,293,382 | 9,504,739 | 9,290,905 | ||||||||
Diluted | 9,804,728 | 9,402,343 | 9,609,050 | 9,407,964 |