LCNB CORP - FORM 8-K - EX-99.2 - EXHIBIT 99.2

Attached files

file	filename
EX-99.1 - EXHIBIT 99.1 - LCNB CORP	lcnb-x8xkexhibit9912017qr3.htm
8-K - 8-K - LCNB CORP	lcnb-x8xk2017qr3xearningsr.htm

Exhibit 99.2

LCNB Corp. and Subsidiaries

Financial Highlights

(Dollars in thousands, except per share amounts)

(Unaudited)



	Three Months Ended											Nine Months Ended
	9/30/2017			6/30/2017		3/31/2017		12/31/2016		9/30/2016		9/30/2017		9/30/2016
Condensed Income Statement
Interest income	$	11,055		10,934		10,864		11,226		10,895		32,853		32,524
Interest expense	908			861		877		887		885		2,646		2,617
Net interest income	10,147			10,073		9,987		10,339		10,010		30,207		29,907
Provision for loan losses	(12		)	222		15		55		372		225		858
Net interest income after provision	10,159			9,851		9,972		10,284		9,638		29,982		29,049
Non-interest income	2,659			2,790		2,430		2,615		2,846		7,879		8,238
Non-interest expense	8,672			8,611		7,968		7,908		8,593		25,251		25,353
Income before income taxes	4,146			4,030		4,434		4,991		3,891		12,610		11,934
Provision for income taxes	1,040			1,027		1,188		1,337		995		3,255		3,106
Net income	$	3,106		3,003		3,246		3,654		2,896		9,355		8,828
Accreted income on acquired loans	$	90		180		220		495		223		490		870
Tax-equivalent net interest income	$	10,569		10,494		10,410		10,772		10,432		31,487		31,136

Per Share Data
Dividends per share	$	0.16		0.16		0.16		0.16		0.16		0.48		0.48
Basic earnings per common share	$	0.31		0.30		0.32		0.37		0.29		0.93		0.89
Diluted earnings per common share	$	0.31		0.30		0.32		0.37		0.29		0.93		0.88
Book value per share	$	14.94		14.77		14.52		14.30		14.70		14.94		14.70
Tangible book value per share	$	11.57		11.38		11.11		10.86		11.24		11.57		11.24
Average basic common shares outstanding	10,008,807			10,004,422		9,995,054		9,984,344		9,962,571		10,002,812		9,930,182
Average diluted common shares outstanding	10,015,204			10,011,312		10,002,878		9,997,565		9,977,592		10,009,942		9,974,319
Shares outstanding at period end	10,018,507			10,014,004		10,009,642		9,998,025		9,993,695		10,018,507		9,993,695

Selected Financial Ratios
Return on average assets	0.94		%	0.91	%	1.01	%	1.10	%	0.87	%	0.95	%	0.91	%
Return on average equity	8.22		%	8.15	%	9.10	%	9.91	%	7.82	%	8.48	%	8.15	%
Dividend payout ratio	51.61		%	53.33	%	50.00	%	43.24	%	55.17	%	51.61	%	53.93	%
Net interest margin (tax equivalent)	3.52		%	3.50	%	3.55	%	3.56	%	3.42	%	3.53	%	3.49	%
Efficiency ratio (tax equivalent)	65.56		%	64.82	%	62.06	%	59.07	%	64.71	%	64.14	%	64.39	%

Selected Balance Sheet Items
Cash and cash equivalents	$	21,203		29,967		33,274		18,865		33,213
Investment securities and stock	353,634			373,595		371,501		368,032		394,798

Loans:
Commercial and industrial	$	36,049		38,651		40,039		41,878		40,097
Commercial, secured by real estate	510,158			495,255		475,594		477,275		467,512
Residential real estate	253,530			258,710		260,853		265,788		268,574
Consumer	17,956			17,475		17,646		19,173		18,752
Agricultural	15,677			16,014		15,459		14,802		15,872
Other, including deposit overdrafts	570			547		609		633		619
Deferred net origination costs	264			281		281		254		236
Loans, gross	834,204			826,933		810,481		819,803		811,662
Less allowance for loan losses	3,407			3,382		3,328		3,575		3,798
Loans, net	$	830,797		823,551		807,153		816,228		807,864



	Three Months Ended											Nine Months Ended
	9/30/2017			6/30/2017		3/31/2017		12/31/2016		9/30/2016		9/30/2017		9/30/2016
Selected Balance Sheet Items, continued
Total earning assets	$	1,193,648		1,211,096		1,200,544		1,188,322		1,222,614
Total assets	1,314,319			1,335,571		1,319,074		1,306,799		1,333,536
Total deposits	1,121,523			1,143,920		1,148,198		1,110,905		1,158,921
Short-term borrowings	30,000			31,712		15,957		42,040		16,989
Long-term debt	363			402		480		598		662
Total shareholders’ equity	149,713			147,927		145,318		142,944		146,906
Equity to assets ratio	11.39		%	11.08	%	11.02	%	10.94	%	11.02	%
Loans to deposits ratio	74.38		%	72.29	%	70.59	%	73.80	%	70.04	%

Tangible common equity (TCE)	$	115,527		113,542		110,745		108,178		111,946
Tangible common assets (TCA)	1,280,133			1,301,186		1,284,501		1,272,033		1,298,576
TCE/TCA	9.02		%	8.73	%	8.62	%	8.50	%	8.62	%

Selected Average Balance Sheet Items
Cash and cash equivalents	$	21,609		33,639		26,672		28,422		32,011		27,289		29,656
Investment securities and stock	363,039			373,295		366,499		380,138		396,620		367,598		394,141

Loans	$	824,183		811,186		813,597		812,537		800,729		816,361		785,807
Less allowance for loan losses	3,324			3,334		3,557		3,654		3,382		3,404		3,206
Net loans	$	820,859		807,852		810,040		808,883		797,347		812,957		782,601

Total earning assets	$	1,190,860		1,202,129		1,188,383		1,204,360		1,212,232		1,193,800		1,192,580
Total assets	1,313,476			1,321,442		1,308,591		1,316,037		1,323,532		1,314,476		1,301,620
Total deposits	1,133,072			1,148,206		1,125,457		1,138,740		1,147,981		1,135,605		1,128,642
Short-term borrowings	17,936			15,030		28,500		20,406		16,328		20,450		17,128
Long-term debt	383			441		537		620		684		453		895
Total shareholders’ equity	150,032			147,826		144,672		146,602		147,371		147,530		144,678
Equity to assets ratio	11.42		%	11.19	%	11.06	%	11.14	%	11.13	%	11.22	%	11.12	%
Loans to deposits ratio	72.74		%	70.65	%	72.29	%	71.35	%	69.75	%	71.89	%	69.62	%

Asset Quality
Net charge-offs (recoveries)	$	(36	)	168		262		278		(53	)	394		189
Other real estate owned	0			0		0		0		270		0		270

Non-accrual loans	4,387			3,747		3,869		5,725		4,619		4,387		4,619
Loans past due 90 days or more and still accruing	95			141		12		23		20		95		20
Total nonperforming loans	$	4,482		3,888		3,881		5,748		4,639		4,482		4,639

Net charge-offs (recoveries) to average loans	(0.02		)%	0.08	%	0.13	%	0.14	%	(0.03	)%	0.10	%	0.05	%
Allowance for loan losses to total loans	0.41		%	0.41	%	0.41	%	0.44	%	0.47	%	0.41	%	0.47	%
Nonperforming loans to total loans	0.54		%	0.47	%	0.48	%	0.70	%	0.57	%	0.54	%	0.57	%
Nonperforming assets to total assets	0.34		%	0.29	%	0.29	%	0.44	%	0.37	%	0.34	%	0.37	%

Assets Under Management
LCNB Corp. total assets	$	1,314,319		1,335,571		1,319,074		1,306,799		1,333,536
Trust and investments (fair value)	326,642			315,450		316,856		303,534		293,808
Mortgage loans serviced	96,241			98,234		99,324		100,982		105,018
Cash management	77,780			45,519		29,102		30,319		27,453
Brokerage accounts (fair value)	219,960			209,019		199,019		188,663		179,244
Total assets managed	$	2,034,942		2,003,793		1,963,375		1,930,297		1,939,059

LCNB CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

(Dollars in thousands)



	September 30, 2017 (Unaudited)			December 31, 2016
ASSETS:
Cash and due from banks	$	15,393		18,378
Interest-bearing demand deposits	5,810			487
Total cash and cash equivalents	21,203			18,865
Investment securities:
Available-for-sale, at fair value	310,404			320,659
Held-to-maturity, at cost	36,860			41,003
Federal Reserve Bank stock, at cost	2,732			2,732
Federal Home Loan Bank stock, at cost	3,638			3,638
Loans, net	830,797			816,228
Premises and equipment, net	34,897			30,244
Goodwill	30,183			30,183
Core deposit and other intangibles	4,003			4,582
Bank owned life insurance	27,795			27,307
Other assets	11,807			11,358
TOTAL ASSETS	$	1,314,319		1,306,799

LIABILITIES:
Deposits:
Noninterest-bearing	$	278,773		271,332
Interest-bearing	842,750			839,573
Total deposits	1,121,523			1,110,905
Short-term borrowings	30,000			42,040
Long-term debt	363			598
Accrued interest and other liabilities	12,720			10,312
TOTAL LIABILITIES	1,164,606			1,163,855

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 at September 30, 2017 and December 31, 2016; issued 10,772,134 and 10,751,652 shares at September 30, 2017 and December 31, 2016, respectively	76,877			76,490
Retained earnings	85,287			80,736
Treasury shares at cost, 753,627 shares at September 30, 2017 and December 31, 2016	(11,665		)	(11,665	)
Accumulated other comprehensive income (loss), net of taxes	(786		)	(2,617	)
TOTAL SHAREHOLDERS' EQUITY	149,713			142,944
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	1,314,319		1,306,799

LCNB CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)



	Three Months Ended September 30,				Nine Months Ended September 30,
	2017			2016	2017	2016
INTEREST INCOME:
Interest and fees on loans	$	9,095		8,876	26,833	26,395
Interest on investment securities –
Taxable	1,108			1,152	3,350	3,528
Non-taxable	783			813	2,377	2,365
Other short-term investments	69			54	293	236
TOTAL INTEREST INCOME	11,055			10,895	32,853	32,524
INTEREST EXPENSE:
Interest on deposits	850			872	2,539	2,565
Interest on short-term borrowings	55			8	97	30
Interest on long-term debt	3			5	10	22
TOTAL INTEREST EXPENSE	908			885	2,646	2,617
NET INTEREST INCOME	10,147			10,010	30,207	29,907
PROVISION FOR LOAN LOSSES	(12		)	372	225	858
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	10,159			9,638	29,982	29,049
NON-INTEREST INCOME:
Trust income	871			871	2,604	2,471
Service charges and fees on deposit accounts	1,352			1,276	3,886	3,712
Net gain (loss) on sales of securities	78			307	218	957
Bank owned life insurance income	190			193	676	553
Gains from sales of loans	34			73	136	175
Other operating income	134			126	359	370
TOTAL NON-INTEREST INCOME	2,659			2,846	7,879	8,238
NON-INTEREST EXPENSE:
Salaries and employee benefits	4,678			4,642	13,907	13,737
Equipment expenses	361			279	836	767
Occupancy expense, net	685			550	1,889	1,707
State franchise tax	281			279	851	836
Marketing	282			162	641	530
Amortization of intangibles	189			189	562	564
FDIC insurance premiums	108			168	320	495
Contracted services	307			300	930	750
Other real estate owned	3			222	8	607
Other non-interest expense	1,778			1,802	5,307	5,360
TOTAL NON-INTEREST EXPENSE	8,672			8,593	25,251	25,353
INCOME BEFORE INCOME TAXES	4,146			3,891	12,610	11,934
PROVISION FOR INCOME TAXES	1,040			995	3,255	3,106
NET INCOME	$	3,106		2,896	9,355	8,828

Dividends declared per common share	$	0.16		0.16	0.48	0.48
Earnings per common share:
Basic	0.31			0.29	0.93	0.89
Diluted	0.31			0.29	0.93	0.88
Weighted average common shares outstanding:
Basic	10,008,807			9,962,571	10,002,812	9,930,182
Diluted	10,015,204			9,977,592	10,009,942	9,974,319

Contacts

LCNB Corp.

Steve P. Foster, CEO & President, 800-344-BANK

Robert C. Haines II, Executive Vice President and CFO, 800-344-BANK

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LCNB CORP - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - October 18, 2017

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