Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - LCNB CORP | lcnb-x8xkexhibit9912018qr3.htm |
| 8-K - 8-K - LCNB CORP | lcnb-x8xk2018qr3xearningsr.htm |
Exhibit 99.2
LCNB Corp. and Subsidiaries
Financial Highlights
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
9/30/2018 | 6/30/2018 | 3/31/2018 | 12/31/2017 | 9/30/2017 | 9/30/2018 | 9/30/2017 | |||||||||||||||
Condensed Income Statement | |||||||||||||||||||||
Interest income | $ | 15,070 | 12,538 | 11,142 | 11,610 | 11,055 | 38,750 | 32,853 | |||||||||||||
Interest expense | 1,967 | 1,170 | 954 | 953 | 908 | 4,091 | 2,646 | ||||||||||||||
Net interest income | 13,103 | 11,368 | 10,188 | 10,657 | 10,147 | 34,659 | 30,207 | ||||||||||||||
Provision for loan losses | 659 | 224 | 79 | (10 | ) | (12 | ) | 962 | 225 | ||||||||||||
Net interest income after provision | 12,444 | 11,144 | 10,109 | 10,667 | 10,159 | 33,697 | 29,982 | ||||||||||||||
Non-interest income | 2,921 | 2,791 | 2,636 | 2,579 | 2,659 | 8,348 | 7,879 | ||||||||||||||
Non-interest expense | 10,317 | 10,711 | 9,549 | 8,612 | 8,672 | 30,577 | 25,251 | ||||||||||||||
Income before income taxes | 5,048 | 3,224 | 3,196 | 4,634 | 4,146 | 11,468 | 12,610 | ||||||||||||||
Provision for income taxes | 847 | 486 | 483 | 1,017 | 1,040 | 1,816 | 3,255 | ||||||||||||||
Net income | $ | 4,201 | 2,738 | 2,713 | 3,617 | 3,106 | 9,652 | 9,355 | |||||||||||||
Amort/Accret income on acquired loans | $ | 198 | 44 | 96 | 606 | 90 | 340 | 490 | |||||||||||||
Amort/Accret expenses on acquired interest-bearing liabilities | $ | 214 | — | — | — | — | 214 | — | |||||||||||||
Tax-equivalent net interest income | $ | 13,281 | 11,549 | 10,375 | 11,062 | 10,569 | 35,203 | 31,487 | |||||||||||||
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 | $ | 0.32 | 0.25 | 0.27 | 0.37 | 0.31 | 0.84 | 0.93 | |||||||||||||
Diluted earnings per common share | $ | 0.32 | 0.25 | 0.27 | 0.36 | 0.31 | 0.84 | 0.93 | |||||||||||||
Book value per share | $ | 16.05 | 15.97 | 14.80 | 14.99 | 14.94 | 16.05 | 14.94 | |||||||||||||
Tangible book value per share | $ | 11.18 | 11.14 | 11.47 | 11.64 | 11.57 | 11.18 | 11.57 | |||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||
Basic | 13,285,203 | 11,099,485 | 10,020,611 | 10,013,777 | 10,008,807 | 11,480,390 | 10,002,812 | ||||||||||||||
Diluted | 13,290,665 | 11,105,014 | 10,028,588 | 10,020,566 | 10,015,204 | 11,486,051 | 10,009,942 | ||||||||||||||
Shares outstanding at period end | 13,304,976 | 13,299,235 | 10,041,152 | 10,023,059 | 10,018,507 | 13,304,976 | 10,018,507 | ||||||||||||||
Selected Financial Ratios | |||||||||||||||||||||
Return on average assets | 1.03 | % | 0.78 | % | 0.85 | % | 1.11 | % | 0.94 | % | 0.89 | % | 0.95 | % | |||||||
Return on average equity | 7.76 | % | 6.46 | % | 7.33 | % | 9.49 | % | 8.22 | % | 7.23 | % | 8.48 | % | |||||||
Dividend payout ratio | 50.00 | % | 64.00 | % | 59.26 | % | 43.24 | % | 51.61 | % | 57.14 | % | 51.61 | % | |||||||
Net interest margin (tax equivalent) | 3.60 | % | 3.63 | % | 3.59 | % | 3.73 | % | 3.52 | % | 3.61 | % | 3.53 | % | |||||||
Efficiency ratio (tax equivalent) | 63.68 | % | 74.69 | % | 73.39 | % | 63.13 | % | 65.56 | % | 70.21 | % | 64.14 | % | |||||||
Selected Balance Sheet Items | |||||||||||||||||||||
Cash and cash equivalents | $ | 19,812 | 24,901 | 17,494 | 25,386 | 21,203 | |||||||||||||||
Investment securities and stock | 299,786 | 311,047 | 310,009 | 317,413 | 353,634 | ||||||||||||||||
Loans: | |||||||||||||||||||||
Commercial and industrial | $ | 78,002 | 81,778 | 37,118 | 36,057 | 36,049 | |||||||||||||||
Commercial, secured by real estate | 704,987 | 705,978 | 542,890 | 527,947 | 510,158 | ||||||||||||||||
Residential real estate | 347,920 | 339,435 | 246,487 | 251,582 | 253,530 | ||||||||||||||||
Consumer | 17,505 | 17,705 | 17,176 | 17,450 | 17,956 | ||||||||||||||||
Agricultural | 13,280 | 13,390 | 12,217 | 15,194 | 15,677 | ||||||||||||||||
Other, including deposit overdrafts | 498 | 583 | 506 | 539 | 570 | ||||||||||||||||
Deferred net origination costs | 133 | 229 | 263 | 291 | 264 | ||||||||||||||||
Loans, gross | 1,162,325 | 1,159,098 | 856,657 | 849,060 | 834,204 | ||||||||||||||||
Less allowance for loan losses | 4,016 | 3,603 | 3,529 | 3,403 | 3,407 | ||||||||||||||||
Loans, net | $ | 1,158,309 | 1,155,495 | 853,128 | 845,657 | 830,797 | |||||||||||||||
Total earning assets | $ | 1,465,787 | 1,471,923 | 1,168,204 | 1,170,700 | 1,193,648 | |||||||||||||||
Total assets | 1,620,134 | 1,631,442 | 1,288,791 | 1,295,638 | 1,314,319 | ||||||||||||||||
Total deposits | 1,371,023 | 1,380,884 | 1,123,463 | 1,085,821 | 1,121,523 | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
9/30/2018 | 6/30/2018 | 3/31/2018 | 12/31/2017 | 9/30/2017 | 9/30/2018 | 9/30/2017 | |||||||||||||||
Selected Balance Sheet Items, continued | |||||||||||||||||||||
Short-term borrowings | 0 | 0 | 0 | 47,000 | 30,000 | ||||||||||||||||
Long-term debt | 23,079 | 27,085 | 6,219 | 303 | 363 | ||||||||||||||||
Total shareholders’ equity | 213,515 | 212,366 | 148,584 | 150,271 | 149,713 | ||||||||||||||||
Equity to assets ratio | 13.18 | % | 13.02 | % | 11.53 | % | 11.60 | % | 11.39 | % | |||||||||||
Loans to deposits ratio | 84.78 | % | 83.94 | % | 76.25 | % | 78.20 | % | 74.38 | % | |||||||||||
Tangible common equity (TCE) | $ | 148,733 | 147,705 | 114,801 | 116,289 | 115,527 | |||||||||||||||
Tangible common assets (TCA) | 1,555,352 | 1,566,781 | 1,255,008 | 1,261,656 | 1,280,133 | ||||||||||||||||
TCE/TCA | 9.56 | % | 9.43 | % | 9.15 | % | 9.22 | % | 9.02 | % | |||||||||||
Selected Average Balance Sheet Items | |||||||||||||||||||||
Cash and cash equivalents | $ | 25,920 | 27,319 | 21,820 | 18,787 | 21,609 | 25,011 | 27,289 | |||||||||||||
Investment securities and stock | 304,112 | 306,366 | 313,689 | 332,225 | 363,039 | 308,020 | 367,598 | ||||||||||||||
Loans | $ | 1,155,846 | 961,726 | 853,152 | 840,526 | 824,183 | 991,350 | 816,361 | |||||||||||||
Less allowance for loan losses | 3,622 | 4,245 | 3,401 | 3,407 | 3,324 | 3,757 | 3,404 | ||||||||||||||
Net loans | $ | 1,152,224 | 957,481 | 849,751 | 837,119 | 820,859 | 987,593 | 812,957 | |||||||||||||
Total earning assets | $ | 1,465,510 | 1,276,176 | 1,170,708 | 1,175,180 | 1,190,860 | 1,305,211 | 1,193,800 | |||||||||||||
Total assets | 1,623,016 | 1,409,698 | 1,292,375 | 1,295,293 | 1,313,476 | 1,442,896 | 1,314,476 | ||||||||||||||
Total deposits | 1,367,950 | 1,212,104 | 1,114,979 | 1,096,966 | 1,133,072 | 1,232,599 | 1,135,605 | ||||||||||||||
Short-term borrowings | 1,833 | 3,491 | 14,086 | 34,440 | 17,936 | 6,425 | 20,450 | ||||||||||||||
Long-term debt | 25,757 | 13,252 | 2,255 | 323 | 383 | 13,841 | 453 | ||||||||||||||
Total shareholders’ equity | 214,769 | 170,077 | 150,058 | 151,154 | 150,032 | 178,539 | 147,530 | ||||||||||||||
Equity to assets ratio | 13.23 | % | 12.06 | % | 11.61 | % | 11.67 | % | 11.42 | % | 12.37 | % | 11.22 | % | |||||||
Loans to deposits ratio | 84.49 | % | 79.34 | % | 76.52 | % | 76.62 | % | 72.74 | % | 80.43 | % | 71.89 | % | |||||||
Asset Quality | |||||||||||||||||||||
Net charge-offs (recoveries) | $ | 245 | 150 | (47 | ) | (7 | ) | (36 | ) | 348 | 394 | ||||||||||
Other real estate owned | 35 | 35 | — | — | — | 35 | — | ||||||||||||||
Non-accrual loans | 2,603 | 4,065 | 2,744 | 2,965 | 4,387 | 2,603 | 4,387 | ||||||||||||||
Loans past due 90 days or more and still accruing | 1 | 5 | 146 | — | 95 | 1 | 95 | ||||||||||||||
Total nonperforming loans | $ | 2,604 | 4,070 | 2,890 | 2,965 | 4,482 | 2,604 | 4,482 | |||||||||||||
Net charge-offs (recoveries) to average loans | 0.08 | % | 0.06 | % | (0.02 | )% | 0.00 | % | (0.02 | )% | 0.05 | % | 0.06 | % | |||||||
Allowance for loan losses to total loans | 0.35 | % | 0.31 | % | 0.41 | % | 0.40 | % | 0.41 | % | 0.35 | % | 0.41 | % | |||||||
Nonperforming loans to total loans | 0.22 | % | 0.35 | % | 0.34 | % | 0.35 | % | 0.54 | % | 0.22 | % | 0.54 | % | |||||||
Nonperforming assets to total assets | 0.16 | % | 0.25 | % | 0.22 | % | 0.23 | % | 0.34 | % | 0.16 | % | 0.34 | % | |||||||
Assets Under Management | |||||||||||||||||||||
LCNB Corp. total assets | $ | 1,620,134 | 1,631,442 | 1,288,791 | 1,295,638 | 1,314,319 | |||||||||||||||
Trust and investments (fair value) | 386,582 | 370,587 | 359,766 | 362,486 | 326,642 | ||||||||||||||||
Mortgage loans serviced | 115,647 | 114,536 | 90,630 | 92,818 | 96,241 | ||||||||||||||||
Cash management | 36,502 | 48,369 | 72,372 | 84,344 | 77,780 | ||||||||||||||||
Brokerage accounts (fair value) | 247,175 | 238,651 | 230,168 | 229,006 | 219,960 | ||||||||||||||||
Total assets managed | $ | 2,406,040 | 2,403,585 | 2,041,727 | 2,064,292 | 2,034,942 | |||||||||||||||
Non-GAAP Financial Measures | |||||||||||||||||||||
Net income | $ | 4,201 | 2,738 | 2,713 | 3,617 | 3,106 | 9,652 | 9,355 | |||||||||||||
Add: merger-related expenses, net of tax | 274 | 710 | 621 | 87 | — | 1,605 | — | ||||||||||||||
Adjusted net income | $ | 4,475 | 3,448 | 3,334 | 3,704 | 3,106 | 11,257 | 9,355 | |||||||||||||
Basic adjusted earnings per share | 0.34 | 0.31 | 0.33 | 0.37 | 0.31 | 0.98 | 0.94 | ||||||||||||||
Diluted adjusted earnings per share | 0.34 | 0.31 | 0.33 | 0.37 | 0.31 | 0.98 | 0.93 | ||||||||||||||
Adjusted return on average assets | 1.09 | % | 0.98 | % | 1.05 | % | 1.16 | % | 0.94 | % | 1.04 | % | 0.95 | % | |||||||
Adjusted return on average equity | 8.27 | % | 8.13 | % | 9.01 | % | 9.94 | % | 8.22 | % | 8.43 | % | 8.48 | % | |||||||
LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(Dollars in thousands)
September 30, 2018 (Unaudited) | December 31, 2017 | |||||
ASSETS: | ||||||
Cash and due from banks | $ | 16,136 | 21,159 | |||
Interest-bearing demand deposits | 3,676 | 4,227 | ||||
Total cash and cash equivalents | 19,812 | 25,386 | ||||
Interest-bearing time deposits | 6,873 | — | ||||
Investment securities: | ||||||
Equity securities with a readily determinable fair value, at fair value | 2,200 | 2,160 | ||||
Equity securities without a readily determinable fair value, at cost | 2,099 | 1,099 | ||||
Debt securities, available-for-sale, at fair value | 247,437 | 275,213 | ||||
Debt securities, held-to-maturity, at cost | 31,679 | 32,571 | ||||
Federal Reserve Bank stock, at cost | 4,653 | 2,732 | ||||
Federal Home Loan Bank stock, at cost | 4,845 | 3,638 | ||||
Loans, net | 1,158,309 | 845,657 | ||||
Premises and equipment, net | 33,533 | 34,927 | ||||
Premises held for sale, net | — | — | ||||
Goodwill | 59,952 | 30,183 | ||||
Core deposit and other intangibles | 5,306 | 3,799 | ||||
Bank owned life insurance | 28,539 | 27,985 | ||||
Other assets | 14,897 | 10,288 | ||||
TOTAL ASSETS | $ | 1,620,134 | 1,295,638 | |||
LIABILITIES: | ||||||
Deposits: | ||||||
Noninterest-bearing | $ | 333,440 | 283,212 | |||
Interest-bearing | 1,037,583 | 802,609 | ||||
Total deposits | 1,371,023 | 1,085,821 | ||||
Short-term borrowings | — | 47,000 | ||||
Long-term debt | 23,079 | 303 | ||||
Accrued interest and other liabilities | 12,517 | 12,243 | ||||
TOTAL LIABILITIES | 1,406,619 | 1,145,367 | ||||
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 Septembeer 30, 2018 and December 31, 2017; issued 14,058,603 and 10,776,686 shares at September 30, 2018 and December 31, 2017, respectively | 140,996 | 76,977 | ||||
Retained earnings | 91,617 | 87,301 | ||||
Treasury shares at cost, 753,627 shares at September 30, 2018 and December 31, 2017 | (11,665 | ) | (11,665 | ) | ||
Accumulated other comprehensive loss, net of taxes | (7,433 | ) | (2,342 | ) | ||
TOTAL SHAREHOLDERS' EQUITY | 213,515 | 150,271 | ||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 1,620,134 | 1,295,638 | |||
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, | |||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||
INTEREST INCOME: | ||||||||||||
Interest and fees on loans | $ | 13,363 | 9,095 | 33,479 | 26,833 | |||||||
Dividends on equity securities with a readily determinable fair value | 17 | 13 | 48 | 44 | ||||||||
Dividends on equity securities without a readily determinable fair value | 7 | 6 | 22 | 17 | ||||||||
Interest on debt securities, taxable | 901 | 1,089 | 2,766 | 3,289 | ||||||||
Interest on debt securities, non-taxable | 661 | 783 | 2,045 | 2,377 | ||||||||
Other short-term investments | 121 | 69 | 390 | 293 | ||||||||
TOTAL INTEREST INCOME | 15,070 | 11,055 | 38,750 | 32,853 | ||||||||
INTEREST EXPENSE: | ||||||||||||
Interest on deposits | 1,810 | 850 | 3,777 | 2,539 | ||||||||
Interest on short-term borrowings | 12 | 55 | 88 | 97 | ||||||||
Interest on long-term debt | 145 | 3 | 226 | 10 | ||||||||
TOTAL INTEREST EXPENSE | 1,967 | 908 | 4,091 | 2,646 | ||||||||
NET INTEREST INCOME | 13,103 | 10,147 | 34,659 | 30,207 | ||||||||
PROVISION FOR LOAN LOSSES | 659 | (12 | ) | 962 | 225 | |||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 12,444 | 10,159 | 33,697 | 29,982 | ||||||||
NON-INTEREST INCOME: | ||||||||||||
Fiduciary income | 1,081 | 871 | 2,987 | 2,604 | ||||||||
Service charges and fees on deposit accounts | 1,439 | 1,352 | 4,170 | 3,886 | ||||||||
Net gains (losses) on sales of securities | (7 | ) | 78 | (8 | ) | 218 | ||||||
Bank owned life insurance income | 185 | 190 | 553 | 676 | ||||||||
Gains from sales of loans | 63 | 34 | 182 | 136 | ||||||||
Other operating income | 160 | 134 | 464 | 359 | ||||||||
TOTAL NON-INTEREST INCOME | 2,921 | 2,659 | 8,348 | 7,879 | ||||||||
NON-INTEREST EXPENSE: | ||||||||||||
Salaries and employee benefits | 5,686 | 4,678 | 15,791 | 13,907 | ||||||||
Equipment expenses | 276 | 361 | 797 | 836 | ||||||||
Occupancy expense, net | 734 | 685 | 2,119 | 1,889 | ||||||||
State financial institutions tax | 299 | 281 | 898 | 851 | ||||||||
Marketing | 382 | 282 | 798 | 641 | ||||||||
Amortization of intangibles | 286 | 189 | 659 | 562 | ||||||||
FDIC insurance premiums | 91 | 108 | 289 | 320 | ||||||||
Contracted services | 387 | 307 | 1,093 | 930 | ||||||||
Other real estate owned | 1 | 3 | 4 | 8 | ||||||||
Merger-related expenses | 346 | — | 1,959 | — | ||||||||
Other non-interest expense | 1,829 | 1,778 | 6,170 | 5,307 | ||||||||
TOTAL NON-INTEREST EXPENSE | 10,317 | 8,672 | 30,577 | 25,251 | ||||||||
INCOME BEFORE INCOME TAXES | 5,048 | 4,146 | 11,468 | 12,610 | ||||||||
PROVISION FOR INCOME TAXES | 847 | 1,040 | 1,816 | 3,255 | ||||||||
NET INCOME | $ | 4,201 | 3,106 | 9,652 | 9,355 | |||||||
Dividends declared per common share | $ | 0.16 | 0.16 | 0.48 | 0.48 | |||||||
Earnings per common share: | ||||||||||||
Basic | 0.32 | 0.31 | 0.84 | 0.93 | ||||||||
Diluted | 0.32 | 0.31 | 0.84 | 0.93 | ||||||||
Weighted average common shares outstanding: | ||||||||||||
Basic | 13,285,203 | 10,008,807 | 11,480,390 | 10,002,812 | ||||||||
Diluted | 13,290,665 | 10,015,204 | 11,486,051 | 10,009,942 | ||||||||
Contacts
LCNB Corp.
Steve P. Foster, CEO, 800-344-BANK
Robert C. Haines II, Executive Vice President and CFO, 800-344-BANK