Attached files
| file | filename |
|---|---|
| EX-99.2 - EXHIBIT 99.2 - LCNB CORP | lcnb-x8xkaexhibit9922018qr2.htm |
| 8-K/A - 8-K/A - LCNB CORP | lcnb-x8xka2018qr2xearnings.htm |
Exhibit 99.1
Updated Press Release
August 6, 2018
LCNB CORP. REPORTS FINANCIAL RESULTS FOR
THE THREE AND SIX MONTHS ENDED JUNE 30, 2018
LEBANON, Ohio--LCNB Corp. ("LCNB") (NASDAQ: LCNB) today announced net income of $2,738,000 (total basic and diluted earnings per share of $0.25) and $5,451,000 (total basic and diluted earnings per share of $0.52) for the three and six months ended June 30, 2018, respectively. This compares to net income of $3,003,000 (total basic and diluted earnings per share of $0.30) and $6,249,000 (total basic and diluted earnings per share of $0.62) for the same three and six month periods in 2017. Items significantly affecting net income during the 2018 periods were:
• | expenses relating to the merger with Columbus First Bancorp, Inc. ("Columbus First") totaled $855,000 and $1,613,000 for the three and six month periods, respectively, |
• | a $645,000 premises impairment charge recognized during the second quarter, and |
• | a reduction in LCNB's federal tax rate from 34% to 21% as a result of the Tax Cuts and Jobs Act that was signed into law on December 22, 2017. |
Commenting on the financial results, LCNB Chief Executive Officer Steve Foster said, "We are pleased to report our financial results for the three and six months ended June 30, 2018. Net income for these periods was less than last year due to merger-related expenses for the acquisition of Columbus First, which occurred during the second quarter 2018. Eliminating this item from the income statement produces pro-forma net income of $3,448,000 and $6,782,000 for the three and six month periods, respectively, which equates to respective increases of $445,000 and $533,000 over the same three and six month periods in 2017. In addition, we are pleased to welcome the shareholders, employees, and customers of Columbus First to LCNB. This acquisition strengthened our presence in the desirable Columbus, Ohio market area and added approximately $283 million in loans and $245 million in deposits to our balance sheet."
Net interest income for the three and six months ended June 30, 2018 was, respectively, $1,295,000 and $1,496,000 greater than the comparable periods in 2017, primarily due to growth in LCNB's loan portfolio, partially offset by a decrease in average investment securities and a market-driven increase in average rates paid on deposits. Loans obtained through the merger with Columbus First were a significant component of LCNB's loan portfolio growth.
The provision for loan losses for the three and six months ended June 30, 2018 was, respectively, $2,000 and $66,000 greater than the comparable periods in 2017. Non-accrual loans and loans past due 90 days or more and still accruing interest increased $1,173,000, from $2,965,000 or 0.35% of total loans at December 31, 2017, to $4,138,000 or 0.36% of total loans at June 30, 2018. Most of the increase was due to one borrower.
Non-interest income for the three and six months ended June 30, 2018 was, respectively, $1,000 and $207,000 greater than the comparable periods in 2017 primarily due to increases in fiduciary income and service charges and fees on deposit accounts, partially offset by a decrease in net gains (losses) from sales of securities.
Non-interest expense for the three and six months ended June 30, 2018 was, respectively, $2,100,000 and $3,681,000 greater than the comparable periods in 2017 primarily due to increases in salaries and employee benefits, merger-related expenses, and an impairment charge recognized on one of LCNB's office buildings. Merger-related expenses increased due to costs connected to the acquisition of Columbus First.
The merger with Columbus First was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed, and consideration paid were recorded at their estimated fair values as of the merger date. The final fair values of assets and liabilities have not yet been determined and the estimates included in LCNB's financial statements at June 30, 2018 are subject to change.
LCNB Corp. is a financial holding company headquartered in Lebanon, Ohio. Through its subsidiary, LCNB National Bank (the “Bank”), it serves customers and communities in Southwest and South Central Ohio. A financial institution with a long tradition for building strong relationships with customers and communities, the Bank offers convenient banking locations in Butler, Clermont, Clinton, Fayette, Franklin, Hamilton, Montgomery, Preble, Ross, and Warren Counties, Ohio. The Bank continually strives to exceed customer expectations and provides an array of services for all personal and business banking needs including checking, savings, online banking, personal lending, business lending, agricultural lending, business support, deposit and treasury, investment services, trust and IRAs and stock purchases. LCNB Corp. common shares are traded on the NASDAQ Capital Market Exchange® under the symbol “LCNB.” Learn more about LCNB Corp. at www.lcnb.com.
Certain statements made in this news release regarding LCNB’s financial condition, results of operations, plans, objectives, future performance and business, are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements are identified by the fact they are not historical facts and include words such as “anticipate”, “could”, “may”, “feel”, “expect”, “believe”, “plan”, and similar expressions. Please refer to LCNB’s Annual Report on Form 10-K for the year ended December 31, 2017, as well as its other filings with the SEC, for a more detailed discussion of risks, uncertainties and factors that could cause actual results to differ from those discussed in the forward-looking statements.
These forward-looking statements reflect management's current expectations based on all information available to management and its knowledge of LCNB’s business and operations. Additionally, LCNB’s financial condition, results of operations, plans, objectives, future performance and business are subject to risks and uncertainties that may cause actual results to differ materially. These factors include, but are not limited to:
1. | the success, impact, and timing of the implementation of LCNB’s business strategies; |
2. | LCNB’s ability to integrate recent and future acquisitions, including the merger with Columbus First, may be unsuccessful, or may be more difficult, time-consuming or costly than expected; |
3. | LCNB may incur increased charge-offs in the future; |
4. | LCNB may face competitive loss of customers; |
5. | changes in the interest rate environment may have results on LCNB’s operations materially different from those anticipated by LCNB’s market risk management functions; |
6. | changes in general economic conditions and increased competition could adversely affect LCNB’s operating results; |
7. | changes in other regulations and government policies affecting bank holding companies and their subsidiaries, including changes in monetary policies, could negatively impact LCNB’s operating results; |
8. | LCNB may experience difficulties growing loan and deposit balances; |
9. | the current economic environment poses significant challenges for us and could adversely affect our financial condition and results of operations; |
10. | deterioration in the financial condition of the U.S. banking system may impact the valuations of investments LCNB has made in the securities of other financial institutions resulting in either actual losses or other than temporary impairments on such investments; |
11. | difficulties with technology or data security breaches, including cyberattacks, that could negatively affect LCNB's ability to conduct business and its relationships with customers, vendors, and others; and |
12. | government intervention in the U.S. financial system, including the effects of recent legislative, tax, accounting and regulatory actions and reforms, including the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), the Jumpstart Our Business Startups Act, the Consumer Financial Protection Bureau, the capital ratios of Basel III as adopted by the federal banking authorities, and the Tax Cuts and Jobs Act. |
Forward-looking statements made herein reflect management's expectations as of the date such statements are made. Such information is provided to assist shareholders and potential investors in understanding current and anticipated financial operations of LCNB and is included pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. LCNB undertakes no obligation to update any forward-looking statement to reflect events or circumstances that arise after the date such statements are made.