LCNB CORP - FORM 8-K - EX-99.2 - July 20, 2020

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Exhibit 99.2

LCNB Corp. and Subsidiaries
Financial Highlights
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended
Six Months Ended
6/30/2020
3/31/2020
12/31/2019
9/30/2019
6/30/2019
6/30/2020
6/30/2019
Condensed Income Statement
Interest income
$15,957  16,556  16,424  16,329  16,328  32,513  32,441  
Interest expense
1,959  2,378  2,577  2,751  2,738  4,337  5,460  
Net interest income
13,998  14,178  13,847  13,578  13,590  28,176  26,981  
Provision (credit) for loan losses
16  1,173  (6) 264  54  1,189  (51) 
Net interest income after provision
13,982  13,005  13,853  13,314  13,536  26,987  27,032  
Non-interest income
3,319  3,839  3,222  3,356  2,998  7,158  5,770  
Non-interest expense
11,116  11,072  11,007  10,982  10,833  22,188  21,533  
Income before income taxes
6,185  5,772  6,068  5,688  5,701  11,957  11,269  
Provision for income taxes
1,128  746  1,238  961  973  1,874  1,914  
Net income
$5,057  5,026  4,830  4,727  4,728  10,083  9,355  
Amort/Accret income on acquired loans
$294  667  400  302  355  961  579  
Amort/Accret expenses on acquired interest-bearing liabilities
$2  3  3  4  142  4  286  
Tax-equivalent net interest income
$14,006  14,254  13,937  13,679  13,700  28,319  27,236  
Per Share Data
Dividends per share
$0.18  0.18  0.18  0.17  0.17  0.36  0.34  
Basic earnings per common share
$0.39  0.39  0.37  0.36  0.36  0.78  0.71  
Diluted earnings per common share
$0.39  0.39  0.37  0.36  0.36  0.78  0.71  
Book value per share
$18.27  18.00  17.63  17.44  17.18  18.27  17.18  
Tangible book value per share
$13.47  13.18  12.78  12.57  12.31  13.47  12.31  
Weighted average common shares outstanding:
Basic
12,940,975  12,926,077  12,912,106  12,932,950  13,192,691  12,933,528  13,237,909  
Diluted
12,941,001  12,927,666  12,916,000  12,937,145  13,196,665  12,934,158  13,241,752  
Shares outstanding at period end
12,975,879  12,969,076  12,936,783  12,927,463  12,978,554  12,975,879  12,978,554  
Selected Financial Ratios
Return on average assets
1.19 %1.23 %1.17 %1.13 %1.16 %1.21 %1.15 %
Return on average equity
8.63 %8.75 %8.42 %8.33 %8.46 %8.69 %8.47 %
Return on average tangible equity11.74 %12.00 %11.63 %11.57 %11.87 %11.92 %11.84 %
Dividend payout ratio
46.15 %46.15 %48.65 %47.22 %47.22 %46.15 %47.89 %
Net interest margin (tax equivalent)
3.70 %3.92 %3.76 %3.67 %3.72 %3.81 %3.71 %
Efficiency ratio (tax equivalent)
63.94 %61.19 %64.15 %64.47 %64.87 %62.54 %65.24 %
Selected Balance Sheet Items
Cash and cash equivalents
$42,736  24,795  20,765  22,826  23,185  
Debt and equity securities
194,883  183,123  219,791  239,730  246,701  
Loans:
Commercial and industrial
$125,492  85,356  78,306  71,576  79,513  
Commercial, secured by real estate
833,286  829,461  804,953  797,842  793,863  
Residential real estate
334,349  318,009  322,533  320,703  326,029  
Consumer
32,859  28,955  25,232  23,918  19,649  
  Agricultural
11,071  10,519  11,509  11,525  10,843  
Other, including deposit overdrafts
283  436  1,193  456  373  
Deferred net origination fees
(1,902) (349) (275) (128) (9) 
  Loans, gross
1,335,438  1,272,387  1,243,451  1,225,892  1,230,261  
Less allowance for loan losses
5,016  5,008  4,045  4,167  4,112  
  Loans, net
$1,330,422  1,267,379  1,239,406  1,221,725  1,226,149  
Total earning assets
$1,554,537  1,462,485  1,466,988  1,470,074  1,482,913  
Total assets
1,735,332  1,636,280  1,639,308  1,644,447  1,642,012  
Total deposits
1,438,921  1,345,872  1,348,280  1,355,383  1,357,959  


Three Months Ended
Six Months Ended
6/30/20203/31/202012/31/20199/30/20196/30/20196/30/20206/30/2019
Selected Balance Sheet Items, continued
Long-term debt
33,998  35,996  40,994  41,990  41,986  
Total shareholders’ equity
237,047  233,478  228,048  225,492  222,972  
Equity to assets ratio
13.66 %14.27 %13.91 %13.71 %13.58 %
Loans to deposits ratio
92.81 %94.54 %92.22 %90.45 %90.60 %
Tangible common equity (TCE)
$174,823  170,994  165,304  162,485  159,702  
Tangible common assets (TCA)
1,673,108  1,573,796  1,576,564  1,581,440  1,578,742  
TCE/TCA
10.45 %10.87 %10.49 %10.27 %10.12 %
Selected Average Balance Sheet Items
Cash and cash equivalents
$46,292  25,101  26,501  28,293  29,523  35,712  27,332  
Debt and equity securities
182,371  204,912  231,115  243,553  249,954  193,642  257,972  
Loans
$1,318,753  1,252,554  1,230,845  1,227,806  1,217,726  1,285,654  1,213,292  
Less allowance for loan losses
4,998  3,938  4,076  3,986  4,088  4,468  4,081  
Net loans
$1,313,755  1,248,616  1,226,769  1,223,820  1,213,638  1,281,186  1,209,211  
Total earning assets
$1,528,610  1,462,946  1,469,469  1,480,096  1,479,225  1,495,779  1,479,924  
Total assets
1,704,303  1,638,486  1,643,793  1,654,034  1,637,645  1,671,394  1,636,370  
Total deposits
1,412,082  1,346,770  1,352,101  1,365,702  1,352,449  1,379,426  1,343,042  
Short-term borrowings
82  1,415  622  468  243  749  11,675  
Long-term debt
34,964  38,325  41,742  41,988  42,567  36,644  43,616  
Total shareholders’ equity
235,587  231,058  227,595  225,216  224,203  233,322  222,844  
Equity to assets ratio
13.82 %14.10 %13.85 %13.62 %13.69 %13.96 %13.62 %
Loans to deposits ratio
93.39 %93.00 %91.03 %89.90 %90.04 %93.20 %90.34 %
Asset Quality
Net charge-offs (recoveries)
$8  210  115  209  68  218  (117) 
Other real estate owned
0  0  197  197  197  0  197  
Non-accrual loans
3,876  2,829  3,210  3,523  2,962  3,876  2,962  
Loans past due 90 days or more and still accruing
38  39  —  —  24  38  24  
Total nonperforming loans
$3,914  2,868  3,210  3,523  2,986  3,914  2,986  
Net charge-offs (recoveries) to average loans
0.00 %0.07 %0.04 %0.07 %0.02 %0.03 %(0.02)%
Allowance for loan losses to total loans
0.38 %0.39 %0.33 %0.34 %0.33 %0.38 %0.33 %
Nonperforming loans to total loans
0.29 %0.23 %0.26 %0.29 %0.24 %0.29 %0.24 %
Nonperforming assets to total assets
0.23 %0.18 %0.21 %0.23 %0.19 %0.23 %0.19 %
Assets Under Management
LCNB Corp. total assets
$1,735,332  1,636,280  1,639,308  1,644,447  1,642,012  
Trust and investments (fair value)
516,076  455,974  435,664  411,724  382,462  
Mortgage loans serviced
100,189  94,805  93,596  90,784  88,444  
Cash management
116,615  77,471  75,948  117,530  71,973  
Brokerage accounts (fair value)
255,276  235,278  268,059  262,038  260,202  
Total assets managed
$2,723,488  2,499,808  2,512,575  2,526,523  2,445,093  


LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS

(Dollars in thousands)
June 30, 2020 (Unaudited)December 31, 2019
ASSETS:
Cash and due from banks$18,520  17,019  
Interest-bearing demand deposits24,216  3,746  
Total cash and cash equivalents42,736  20,765  
Investment securities:  
Equity securities with a readily determinable fair value, at fair value2,163  2,312  
Equity securities without a readily determinable fair value, at cost2,099  2,099  
Debt securities, available-for-sale, at fair value153,529  178,000  
Debt securities, held-to-maturity, at cost27,237  27,525  
Federal Reserve Bank stock, at cost4,652  4,652  
Federal Home Loan Bank stock, at cost5,203  5,203  
Loans, net1,330,422  1,239,406  
Premises and equipment, net35,383  34,787  
Operating leases right of use asset5,532  5,444  
Goodwill59,221  59,221  
Core deposit and other intangibles3,558  4,006  
Bank owned life insurance41,596  41,667  
Other assets22,001  14,221  
TOTAL ASSETS$1,735,332  1,639,308  
LIABILITIES:  
Deposits:  
Noninterest-bearing$431,697  354,391  
Interest-bearing1,007,224  993,889  
Total deposits1,438,921  1,348,280  
Long-term debt33,998  40,994  
Operating leases liability5,558  5,446  
Accrued interest and other liabilities19,808  16,540  
TOTAL LIABILITIES1,498,285  1,411,260  
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 June 30, 2020 and December 31, 2019; issued 14,150,906 and 14,111,810 shares at June 30, 2020 and December 31, 2019, respectively142,181  141,791  
Retained earnings109,845  104,431  
Treasury shares at cost, 1,175,027 shares at June 30, 2020 and December 31, 2019(18,847) (18,847) 
Accumulated other comprehensive income, net of taxes3,868  673  
TOTAL SHAREHOLDERS' EQUITY237,047  228,048  
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$1,735,332  1,639,308  




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,
 2020201920202019
INTEREST INCOME:
Interest and fees on loans$14,822  14,662  30,049  29,200  
Dividends on equity securities with a readily determinable fair value13  15  27  32  
Dividends on equity securities without a readily determinable fair value12  16  28  32  
Interest on debt securities, taxable667  933  1,617  1,802  
Interest on debt securities, non-taxable254  417  539  961  
Interest on interest-bearing time deposits—  3  —  8  
Other investments189  282  253  406  
TOTAL INTEREST INCOME15,957  16,328  32,513  32,441  
INTEREST EXPENSE:    
Interest on deposits1,732  2,464  3,849  4,750  
Interest on short-term borrowings—  2  7  221  
Interest on long-term debt227  272  481  489  
TOTAL INTEREST EXPENSE1,959  2,738  4,337  5,460  
NET INTEREST INCOME13,998  13,590  28,176  26,981  
PROVISION (CREDIT) FOR LOAN LOSSES16  54  1,189  (51) 
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES13,982  13,536  26,987  27,032  
NON-INTEREST INCOME:    
Fiduciary income1,201  1,058  2,304  2,092  
Service charges and fees on deposit accounts1,237  1,497  2,532  2,805  
Net gains (losses) on sales of debt securities—  1  221  (17) 
Bank owned life insurance income287  183  888  365  
Gains from sales of loans317  64  437  93  
Other operating income277  195  776  432  
TOTAL NON-INTEREST INCOME3,319  2,998  7,158  5,770  
NON-INTEREST EXPENSE:    
Salaries and employee benefits6,648  6,243  13,416  12,405  
Equipment expenses289  278  576  544  
Occupancy expense, net723  744  1,405  1,507  
State financial institutions tax420  436  856  874  
Marketing258  297  435  599  
Amortization of intangibles260  260  520  517  
FDIC insurance premiums, net31  112  30  238  
Contracted services475  475  877  939  
Other real estate owned1  48  (9) 51  
Merger-related expenses—  20  —  87  
Other non-interest expense2,011  1,920  4,082  3,772  
TOTAL NON-INTEREST EXPENSE11,116  10,833  22,188  21,533  
INCOME BEFORE INCOME TAXES6,185  5,701  11,957  11,269  
PROVISION FOR INCOME TAXES1,128  973  1,874  1,914  
NET INCOME$5,057  4,728  10,083  9,355  
Dividends declared per common share$0.18  0.17  0.36  0.34  
Earnings per common share:    
Basic0.39  0.36  0.78  0.71  
Diluted0.39  0.36  0.78  0.71  
Weighted average common shares outstanding:
Basic12,940,975  13,192,691  12,933,528  13,237,909  
Diluted12,941,001  13,196,665  12,934,158  13,241,752  



Contacts
LCNB Corp.
Eric J. Meilstrup, CEO and President, 800-344-BANK
Robert C. Haines II, Executive Vice President and CFO, 800-344-BANK


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