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EX-99.1 - EXHIBIT 99.1 - LCNB CORP | lcnb-x8xkexhibit9912016qr2.htm |
8-K - 8-K - LCNB CORP | lcnb-x8xk2016qr2xearningsr.htm |
Exhibit 99.2
LCNB Corp. and Subsidiaries
Financial Highlights
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended | Six Months Ended | ||||||||||||||||||||
6/30/2016 | 3/31/2016 | 12/31/2015 | 9/30/2015 | 6/30/2015 | 6/30/2016 | 6/30/2015 | |||||||||||||||
Condensed Income Statement | |||||||||||||||||||||
Interest income | $ | 11,008 | 10,621 | 10,812 | 10,409 | 11,348 | 21,629 | 21,438 | |||||||||||||
Interest expense | 883 | 849 | 906 | 912 | 748 | 1,732 | 1,510 | ||||||||||||||
Net interest income | 10,125 | 9,772 | 9,906 | 9,497 | 10,600 | 19,897 | 19,928 | ||||||||||||||
Provision for loan losses | 396 | 90 | 380 | 240 | 677 | 486 | 746 | ||||||||||||||
Net interest income after provision | 9,729 | 9,682 | 9,526 | 9,257 | 9,923 | 19,411 | 19,182 | ||||||||||||||
Non-interest income | 2,750 | 2,642 | 2,600 | 2,386 | 2,831 | 5,392 | 5,137 | ||||||||||||||
Non-interest expense | 8,468 | 8,292 | 8,229 | 8,088 | 8,426 | 16,760 | 16,075 | ||||||||||||||
Income before income taxes | 4,011 | 4,032 | 3,897 | 3,555 | 4,328 | 8,043 | 8,244 | ||||||||||||||
Provision for income taxes | 1,043 | 1,068 | 1,013 | 922 | 1,205 | 2,111 | 2,287 | ||||||||||||||
Net income | $ | 2,968 | 2,964 | 2,884 | 2,633 | 3,123 | 5,932 | 5,957 | |||||||||||||
Per Share Data | |||||||||||||||||||||
Dividends per share | $ | 0.16 | 0.16 | 0.16 | 0.16 | 0.16 | 0.32 | 0.32 | |||||||||||||
Basic earnings per share | $ | 0.30 | 0.30 | 0.29 | 0.26 | 0.33 | 0.60 | 0.63 | |||||||||||||
Diluted earnings per share | $ | 0.29 | 0.30 | 0.29 | 0.26 | 0.32 | 0.59 | 0.62 | |||||||||||||
Book value per share | $ | 14.66 | 14.39 | 14.12 | 14.22 | 13.91 | 14.66 | 13.91 | |||||||||||||
Tangible book value per share | $ | 11.17 | 10.88 | 10.58 | 10.66 | 10.33 | 11.17 | 10.33 | |||||||||||||
Average basic shares outstanding | 9,922,024 | 9,916,114 | 9,905,612 | 9,898,233 | 9,694,732 | 9,919,070 | 9,504,739 | ||||||||||||||
Average diluted shares outstanding | 9,943,797 | 9,998,516 | 10,014,908 | 10,005,788 | 9,804,728 | 9,971,900 | 9,609,050 | ||||||||||||||
Shares outstanding at period end | 9,937,262 | 9,931,788 | 9,925,547 | 9,903,294 | 9,896,904 | 9,937,262 | 9,896,904 | ||||||||||||||
Selected Financial Ratios | |||||||||||||||||||||
Return on average assets | 0.92 | % | 0.93 | % | 0.89 | % | 0.82 | % | 1.03 | % | 0.92 | % | 1.02 | % | |||||||
Return on average equity | 8.28 | % | 8.37 | % | 8.07 | % | 7.51 | % | 9.21 | % | 8.32 | % | 9.11 | % | |||||||
Dividend payout ratio | 53.33 | % | 53.33 | % | 55.17 | % | 61.54 | % | 48.48 | % | 53.33 | % | 50.79 | % | |||||||
Net interest margin (tax equivalent) | 3.55 | % | 3.49 | % | 3.46 | % | 3.37 | % | 3.95 | % | 3.52 | % | 3.89 | % | |||||||
Efficiency ratio (tax equivalent) | 63.73 | % | 64.74 | % | 63.80 | % | 65.97 | % | 61.08 | % | 64.22 | % | 62.39 | % | |||||||
Selected Balance Sheet Items | |||||||||||||||||||||
Investment securities and stock | $ | 399,345 | 393,976 | 406,981 | 391,430 | 378,651 | |||||||||||||||
Loans: | |||||||||||||||||||||
Commercial and industrial | $ | 45,153 | 45,324 | 45,275 | 45,325 | 47,958 | |||||||||||||||
Commercial, secured by real estate | 455,654 | 430,179 | 419,633 | 407,264 | 399,551 | ||||||||||||||||
Residential real estate | 266,625 | 271,812 | 273,139 | 274,054 | 273,249 | ||||||||||||||||
Consumer | 18,545 | 17,925 | 18,510 | 19,283 | 19,718 | ||||||||||||||||
Agricultural | 13,605 | 12,589 | 13,479 | 16,016 | 13,434 | ||||||||||||||||
Other, including deposit overdrafts | 635 | 643 | 665 | 676 | 638 | ||||||||||||||||
Deferred net origination costs | 248 | 242 | 237 | 215 | 188 | ||||||||||||||||
Loans, gross | 800,465 | 778,714 | 770,938 | 762,833 | 754,736 | ||||||||||||||||
Less allowance for loan losses | 3,373 | 3,150 | 3,129 | 2,958 | 2,879 | ||||||||||||||||
Loans, net | $ | 797,092 | 775,564 | 767,809 | 759,875 | 751,857 | |||||||||||||||
Total assets | $ | 1,312,635 | 1,285,922 | 1,280,531 | 1,275,171 | 1,249,363 | |||||||||||||||
Total deposits | 1,124,698 | 1,120,208 | 1,087,160 | 1,103,513 | 1,084,033 | ||||||||||||||||
Short-term borrowings | 30,541 | 11,668 | 37,387 | 14,931 | 12,731 | ||||||||||||||||
Long-term debt | 726 | 789 | 5,947 | 6,016 | 6,085 | ||||||||||||||||
Total shareholders’ equity | 145,710 | 142,933 | 140,108 | 140,851 | 137,698 | ||||||||||||||||
Equity to assets ratio | 11.10 | % | 11.12 | % | 10.94 | % | 11.05 | % | 11.02 | % | |||||||||||
Loans to deposit ratio | 71.17 | % | 69.52 | % | 70.91 | % | 69.13 | % | 69.62 | % | |||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
6/30/2016 | 3/31/2016 | 12/31/2015 | 9/30/2015 | 6/30/2015 | 6/30/2016 | 6/30/2015 | |||||||||||||||
Selected Balance Sheet Items, continued | |||||||||||||||||||||
Tangible common equity (TCE) | $ | 110,541 | 107,567 | 104,529 | 105,063 | 101,694 | |||||||||||||||
Tangible common assets (TCA) | 1,277,466 | 1,250,556 | 1,244,952 | 1,239,383 | 1,213,359 | ||||||||||||||||
TCE/TCA | 8.65 | % | 8.60 | % | 8.40 | % | 8.48 | % | 8.38 | % | |||||||||||
Selected Average Balance Sheet Items | |||||||||||||||||||||
Investment securities and stock | $ | 396,130 | 389,648 | 406,423 | 385,353 | 360,750 | 392,889 | 337,146 | |||||||||||||
Loans | $ | 784,324 | 772,204 | 764,440 | 760,159 | 737,021 | 778,264 | 718,592 | |||||||||||||
Less allowance for loan losses | 3,103 | 3,130 | 2,929 | 2,885 | 2,865 | 3,116 | 2,868 | ||||||||||||||
Net loans | $ | 781,221 | 769,074 | 761,511 | 757,274 | 734,156 | 775,148 | 715,724 | |||||||||||||
Total assets | $ | 1,303,073 | 1,278,014 | 1,285,114 | 1,267,171 | 1,220,938 | 1,290,543 | 1,173,307 | |||||||||||||
Total deposits | 1,133,403 | 1,104,330 | 1,107,214 | 1,099,730 | 1,057,818 | 1,118,867 | 1,013,982 | ||||||||||||||
Short-term borrowings | 14,355 | 20,710 | 20,290 | 13,450 | 12,803 | 17,532 | 13,310 | ||||||||||||||
Long-term debt | 747 | 1,256 | 5,970 | 6,040 | 6,108 | 1,002 | 6,352 | ||||||||||||||
Total shareholders’ equity | 144,185 | 142,447 | 141,751 | 139,032 | 136,003 | 143,316 | 131,829 | ||||||||||||||
Asset Quality | |||||||||||||||||||||
Net charge-offs | $ | 173 | 69 | 209 | 161 | 635 | |||||||||||||||
Other real estate owned | 682 | 846 | 846 | 1,208 | 1,364 | ||||||||||||||||
Non-accrual loans | 2,697 | 3,328 | 1,723 | 2,254 | 1,961 | ||||||||||||||||
Loans past due 90 days or more and still accruing | 369 | 99 | 559 | 130 | 128 | ||||||||||||||||
Total nonperforming loans | $ | 3,066 | 3,427 | 2,282 | 2,384 | 2,089 | |||||||||||||||
Net charge-offs to average loans | 0.09 | % | 0.04 | % | 0.11 | % | 0.08 | % | 0.35 | % | |||||||||||
Allowance for loan losses to total loans | 0.42 | % | 0.40 | % | 0.41 | % | 0.39 | % | 0.38 | % | |||||||||||
Nonperforming loans to total loans | 0.38 | % | 0.44 | % | 0.30 | % | 0.31 | % | 0.28 | % | |||||||||||
Nonperforming assets to total assets | 0.29 | % | 0.33 | % | 0.24 | % | 0.28 | % | 0.28 | % | |||||||||||
Assets Under Management | |||||||||||||||||||||
LCNB Corp. total assets | $ | 1,312,635 | 1,285,922 | 1,280,531 | 1,275,171 | 1,249,363 | |||||||||||||||
Trust and investments (fair value) | 284,118 | 274,297 | 283,193 | 258,675 | 272,209 | ||||||||||||||||
Mortgage loans serviced | 107,189 | 107,992 | 111,837 | 113,610 | 117,204 | ||||||||||||||||
Business cash management | 8,551 | 6,773 | 7,271 | 6,809 | 6,628 | ||||||||||||||||
Brokerage accounts (fair value) | 163,596 | 157,713 | 148,956 | 142,151 | 144,186 | ||||||||||||||||
Total assets managed | $ | 1,876,089 | 1,832,697 | 1,831,788 | 1,796,416 | 1,789,590 | |||||||||||||||
Non-GAAP Financial Measures | |||||||||||||||||||||
Accreted income on acquired loans | $ | 294 | 333 | 219 | 243 | 1,348 | 627 | 1,674 | |||||||||||||
Amortization of acquired deposit premiums | $ | 0 | 27 | 34 | 46 | 211 | 27 | 397 | |||||||||||||
Net income | $ | 2,968 | 2,964 | 2,884 | 2,633 | 3,123 | 5,932 | 5,957 | |||||||||||||
Less (add) net gain (loss) on sales of securities, net of tax | 183 | 245 | 108 | 0 | 146 | 428 | 219 | ||||||||||||||
Add merger-related expenses, net of tax | 0 | 0 | 2 | 32 | 363 | 0 | 429 | ||||||||||||||
Core net income | $ | 2,785 | 2,719 | 2,778 | 2,665 | 3,340 | 5,504 | 6,167 | |||||||||||||
Basic core earnings per share | $ | 0.28 | 0.27 | 0.28 | 0.27 | 0.34 | 0.55 | 0.65 | |||||||||||||
Diluted core earnings per share | $ | 0.28 | 0.27 | 0.28 | 0.27 | 0.34 | 0.55 | 0.64 | |||||||||||||
Adjusted return on average assets | 0.86 | % | 0.85 | % | 0.86 | % | 0.83 | % | 1.10 | % | 0.86 | % | 1.06 | % | |||||||
Adjusted return on average equity | 7.77 | % | 7.66 | % | 7.77 | % | 7.60 | % | 9.85 | % | 7.72 | % | 9.43 | % | |||||||
Core efficiency ratio (tax equivalent) | 65.09 | % | 66.67 | % | 64.60 | % | 65.57 | % | 58.23 | % | 65.86 | % | 60.88 | % |
LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(Dollars in thousands)
June 30, 2016 (Unaudited) | December 31, 2015 | |||||
ASSETS: | ||||||
Cash and due from banks | $ | 17,254 | 14,155 | |||
Interest-bearing demand deposits | 1,753 | 832 | ||||
Total cash and cash equivalents | 19,007 | 14,987 | ||||
Investment securities: | ||||||
Available-for-sale, at fair value | 353,528 | 377,978 | ||||
Held-to-maturity, at cost | 39,447 | 22,633 | ||||
Federal Reserve Bank stock, at cost | 2,732 | 2,732 | ||||
Federal Home Loan Bank stock, at cost | 3,638 | 3,638 | ||||
Loans, net | 797,092 | 767,809 | ||||
Premises and equipment, net | 24,985 | 22,100 | ||||
Goodwill | 30,183 | 30,183 | ||||
Core deposit and other intangibles | 4,986 | 5,396 | ||||
Bank owned life insurance | 26,921 | 22,561 | ||||
Other assets | 10,116 | 10,514 | ||||
TOTAL ASSETS | $ | 1,312,635 | 1,280,531 | |||
LIABILITIES: | ||||||
Deposits: | ||||||
Noninterest-bearing | $ | 252,498 | 250,306 | |||
Interest-bearing | 872,200 | 836,854 | ||||
Total deposits | 1,124,698 | 1,087,160 | ||||
Short-term borrowings | 30,541 | 37,387 | ||||
Long-term debt | 726 | 5,947 | ||||
Accrued interest and other liabilities | 10,960 | 9,929 | ||||
TOTAL LIABILITIES | 1,166,925 | 1,140,423 | ||||
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 and12,000,000 shares at June 30, 2016 and December 31, 2015, respectively; issued 10,690,889 and 10,679,174 shares at June 30, 2016 and December 31, 2015, respectively | 75,602 | 76,908 | ||||
Retained earnings | 77,384 | 74,629 | ||||
Treasury shares at cost, 753,627 shares at June 30, 2016 and December 31, 2015 | (11,665 | ) | (11,665 | ) | ||
Accumulated other comprehensive income, net of taxes | 4,389 | 236 | ||||
TOTAL SHAREHOLDERS' EQUITY | 145,710 | 140,108 | ||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 1,312,635 | 1,280,531 |
LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
INTEREST INCOME: | ||||||||||||
Interest and fees on loans | $ | 8,892 | 9,492 | 17,519 | 18,032 | |||||||
Interest on investment securities – | ||||||||||||
Taxable | 1,187 | 1,033 | 2,376 | 1,889 | ||||||||
Non-taxable | 794 | 702 | 1,552 | 1,355 | ||||||||
Other short-term investments | 135 | 121 | 182 | 162 | ||||||||
TOTAL INTEREST INCOME | 11,008 | 11,348 | 21,629 | 21,438 | ||||||||
INTEREST EXPENSE: | ||||||||||||
Interest on deposits | 870 | 671 | 1,693 | 1,353 | ||||||||
Interest on short-term borrowings | 8 | 4 | 22 | 8 | ||||||||
Interest on long-term debt | 5 | 73 | 17 | 149 | ||||||||
TOTAL INTEREST EXPENSE | 883 | 748 | 1,732 | 1,510 | ||||||||
NET INTEREST INCOME | 10,125 | 10,600 | 19,897 | 19,928 | ||||||||
PROVISION FOR LOAN LOSSES | 396 | 677 | 486 | 746 | ||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 9,729 | 9,923 | 19,411 | 19,182 | ||||||||
NON-INTEREST INCOME: | ||||||||||||
Trust income | 837 | 852 | 1,600 | 1,652 | ||||||||
Service charges and fees on deposit accounts | 1,243 | 1,234 | 2,436 | 2,341 | ||||||||
Net gain (loss) on sales of securities | 279 | 221 | 650 | 332 | ||||||||
Bank owned life insurance income | 191 | 155 | 360 | 314 | ||||||||
Gains from sales of loans | 61 | 219 | 102 | 254 | ||||||||
Other operating income | 139 | 150 | 244 | 244 | ||||||||
TOTAL NON-INTEREST INCOME | 2,750 | 2,831 | 5,392 | 5,137 | ||||||||
NON-INTEREST EXPENSE: | ||||||||||||
Salaries and employee benefits | 4,532 | 4,381 | 9,095 | 8,671 | ||||||||
Equipment expenses | 239 | 302 | 488 | 590 | ||||||||
Occupancy expense, net | 588 | 584 | 1,157 | 1,179 | ||||||||
State franchise tax | 276 | 250 | 557 | 502 | ||||||||
Marketing | 201 | 220 | 368 | 383 | ||||||||
Amortization of intangibles | 188 | 175 | 375 | 321 | ||||||||
FDIC insurance premiums | 162 | 145 | 327 | 296 | ||||||||
Other real estate owned | 356 | 20 | 385 | 55 | ||||||||
Merger-related expenses | — | 522 | — | 592 | ||||||||
Other non-interest expense | 1,926 | 1,827 | 4,008 | 3,486 | ||||||||
TOTAL NON-INTEREST EXPENSE | 8,468 | 8,426 | 16,760 | 16,075 | ||||||||
INCOME BEFORE INCOME TAXES | 4,011 | 4,328 | 8,043 | 8,244 | ||||||||
PROVISION FOR INCOME TAXES | 1,043 | 1,205 | 2,111 | 2,287 | ||||||||
NET INCOME | $ | 2,968 | 3,123 | 5,932 | 5,957 | |||||||
Dividends declared per common share | $ | 0.16 | 0.16 | 0.32 | 0.32 | |||||||
Earnings per common share: | ||||||||||||
Basic | 0.30 | 0.33 | 0.60 | 0.63 | ||||||||
Diluted | 0.29 | 0.32 | 0.59 | 0.62 | ||||||||
Weighted average common shares outstanding: | ||||||||||||
Basic | 9,922,024 | 9,694,732 | 9,919,070 | 9,504,739 | ||||||||
Diluted | 9,943,797 | 9,804,728 | 9,971,900 | 9,609,050 |