Attached files
| file | filename |
|---|---|
| 8-K/A - 8-K/A - LCNB CORP | lcnb-x8xka2018qr2xearnings.htm |
| EX-99.1 - EXHIBIT 99.1 - LCNB CORP | lcnb-x8xkaexhibit9912018qr2.htm |
Exhibit 99.2
LCNB Corp. and Subsidiaries
Updated Financial Highlights
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended | Six Months Ended | ||||||||||||||||||||
6/30/2018 | 3/31/2018 | 12/31/2017 | 9/30/2017 | 6/30/2017 | 6/30/2018 | 6/30/2017 | |||||||||||||||
Condensed Income Statement | |||||||||||||||||||||
Interest income | $ | 12,538 | 11,142 | 11,610 | 11,055 | 10,934 | 23,680 | 21,798 | |||||||||||||
Interest expense | 1,170 | 954 | 953 | 908 | 861 | 2,124 | 1,738 | ||||||||||||||
Net interest income | 11,368 | 10,188 | 10,657 | 10,147 | 10,073 | 21,556 | 20,060 | ||||||||||||||
Provision for loan losses | 224 | 79 | (10 | ) | (12 | ) | 222 | 303 | 237 | ||||||||||||
Net interest income after provision | 11,144 | 10,109 | 10,667 | 10,159 | 9,851 | 21,253 | 19,823 | ||||||||||||||
Non-interest income | 2,791 | 2,636 | 2,579 | 2,659 | 2,790 | 5,427 | 5,220 | ||||||||||||||
Non-interest expense | 10,711 | 9,549 | 8,612 | 8,672 | 8,611 | 20,260 | 16,579 | ||||||||||||||
Income before income taxes | 3,224 | 3,196 | 4,634 | 4,146 | 4,030 | 6,420 | 8,464 | ||||||||||||||
Provision for income taxes | 486 | 483 | 1,017 | 1,040 | 1,027 | 969 | 2,215 | ||||||||||||||
Net income | $ | 2,738 | 2,713 | 3,617 | 3,106 | 3,003 | 5,451 | 6,249 | |||||||||||||
Accreted income on acquired loans | $ | 44 | 96 | 606 | 90 | 180 | 140 | 400 | |||||||||||||
Tax-equivalent net interest income | $ | 11,549 | 10,375 | 11,062 | 10,569 | 10,494 | 21,924 | 20,904 | |||||||||||||
Per Share Data | |||||||||||||||||||||
Dividends per share | $ | 0.16 | 0.16 | 0.16 | 0.16 | 0.16 | 0.32 | 0.32 | |||||||||||||
Basic earnings per common share | $ | 0.25 | 0.27 | 0.37 | 0.31 | 0.30 | 0.52 | 0.62 | |||||||||||||
Diluted earnings per common share | $ | 0.25 | 0.27 | 0.36 | 0.31 | 0.30 | 0.52 | 0.62 | |||||||||||||
Book value per share | $ | 15.97 | 14.80 | 14.99 | 14.94 | 14.77 | 15.97 | 14.77 | |||||||||||||
Tangible book value per share | $ | 11.14 | 11.47 | 11.64 | 11.57 | 11.38 | 11.14 | 11.38 | |||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||
Basic | 11,099,485 | 10,020,611 | 10,013,777 | 10,008,807 | 10,004,422 | 10,563,030 | 9,999,765 | ||||||||||||||
Diluted | 11,105,014 | 10,028,588 | 10,020,566 | 10,015,204 | 10,011,312 | 10,568,792 | 10,007,192 | ||||||||||||||
Shares outstanding at period end | 13,299,235 | 10,041,152 | 10,023,059 | 10,018,507 | 10,014,004 | 13,299,235 | 10,014,004 | ||||||||||||||
Selected Financial Ratios | |||||||||||||||||||||
Return on average assets | 0.78 | % | 0.85 | % | 1.11 | % | 0.94 | % | 0.91 | % | 0.81 | % | 0.96 | % | |||||||
Return on average equity | 6.46 | % | 7.33 | % | 9.49 | % | 8.22 | % | 8.15 | % | 6.87 | % | 8.61 | % | |||||||
Dividend payout ratio | 64.00 | % | 59.26 | % | 43.24 | % | 51.61 | % | 53.33 | % | 61.54 | % | 51.61 | % | |||||||
Net interest margin (tax equivalent) | 3.63 | % | 3.59 | % | 3.73 | % | 3.52 | % | 3.50 | % | 3.61 | % | 3.53 | % | |||||||
Efficiency ratio (tax equivalent) | 74.69 | % | 73.39 | % | 63.13 | % | 65.56 | % | 64.82 | % | 74.07 | % | 63.43 | % | |||||||
Selected Balance Sheet Items | |||||||||||||||||||||
Cash and cash equivalents | $ | 24,901 | 17,494 | 25,386 | 21,203 | 29,967 | |||||||||||||||
Investment securities and stock | 311,047 | 310,009 | 317,413 | 353,634 | 373,595 | ||||||||||||||||
Loans: | |||||||||||||||||||||
Commercial and industrial | $ | 81,778 | 37,118 | 36,057 | 36,049 | 38,651 | |||||||||||||||
Commercial, secured by real estate | 705,978 | 542,890 | 527,947 | 510,158 | 495,255 | ||||||||||||||||
Residential real estate | 339,435 | 246,487 | 251,582 | 253,530 | 258,710 | ||||||||||||||||
Consumer | 17,705 | 17,176 | 17,450 | 17,956 | 17,475 | ||||||||||||||||
Agricultural | 13,390 | 12,217 | 15,194 | 15,677 | 16,014 | ||||||||||||||||
Other, including deposit overdrafts | 583 | 506 | 539 | 570 | 547 | ||||||||||||||||
Deferred net origination costs | 229 | 263 | 291 | 264 | 281 | ||||||||||||||||
Loans, gross | 1,159,098 | 856,657 | 849,060 | 834,204 | 826,933 | ||||||||||||||||
Less allowance for loan losses | 3,603 | 3,529 | 3,403 | 3,407 | 3,382 | ||||||||||||||||
Loans, net | $ | 1,155,495 | 853,128 | 845,657 | 830,797 | 823,551 | |||||||||||||||
Total earning assets | $ | 1,471,923 | 1,168,204 | 1,170,700 | 1,193,648 | 1,211,096 | |||||||||||||||
Total assets | 1,631,442 | 1,288,791 | 1,295,638 | 1,314,319 | 1,335,571 | ||||||||||||||||
Total deposits | 1,380,884 | 1,123,463 | 1,085,821 | 1,121,523 | 1,143,920 | ||||||||||||||||
Short-term borrowings | — | — | 47,000 | 30,000 | 31,712 | ||||||||||||||||
Long-term debt | 27,085 | 6,219 | 303 | 363 | 402 | ||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
6/30/2018 | 3/31/2018 | 12/31/2017 | 9/30/2017 | 6/30/2017 | 6/30/2018 | 6/30/2017 | |||||||||||||||
Selected Balance Sheet Items, continued | |||||||||||||||||||||
Total shareholders’ equity | 212,366 | 148,584 | 150,271 | 149,713 | 147,927 | ||||||||||||||||
Equity to assets ratio | 13.02 | % | 11.53 | % | 11.60 | % | 11.39 | % | 11.08 | % | |||||||||||
Loans to deposits ratio | 83.94 | % | 76.25 | % | 78.20 | % | 74.38 | % | 72.29 | % | |||||||||||
Tangible common equity (TCE) | $ | 147,705 | 114,801 | 116,289 | 115,527 | 113,542 | |||||||||||||||
Tangible common assets (TCA) | 1,566,781 | 1,255,008 | 1,261,656 | 1,280,133 | 1,301,186 | ||||||||||||||||
TCE/TCA | 9.43 | % | 9.15 | % | 9.22 | % | 9.02 | % | 8.73 | % | |||||||||||
Selected Average Balance Sheet Items | |||||||||||||||||||||
Cash and cash equivalents | $ | 27,319 | 21,820 | 18,787 | 21,609 | 33,639 | 24,601 | 30,173 | |||||||||||||
Investment securities and stock | 306,366 | 313,689 | 332,225 | 363,039 | 373,295 | 310,007 | 369,916 | ||||||||||||||
Loans | $ | 961,726 | 853,152 | 840,526 | 824,183 | 811,186 | 907,739 | 812,385 | |||||||||||||
Less allowance for loan losses | 4,245 | 3,401 | 3,407 | 3,324 | 3,334 | 3,825 | 3,445 | ||||||||||||||
Net loans | $ | 957,481 | 849,751 | 837,119 | 820,859 | 807,852 | 903,914 | 808,940 | |||||||||||||
Total earning assets | $ | 1,276,176 | 1,170,708 | 1,175,180 | 1,190,860 | 1,202,129 | 1,223,733 | 1,195,294 | |||||||||||||
Total assets | 1,409,698 | 1,292,375 | 1,295,293 | 1,313,476 | 1,321,442 | 1,351,355 | 1,315,052 | ||||||||||||||
Total deposits | 1,212,104 | 1,114,979 | 1,096,966 | 1,133,072 | 1,148,206 | 1,163,810 | 1,136,895 | ||||||||||||||
Short-term borrowings | 3,491 | 14,086 | 34,440 | 17,936 | 15,030 | 8,759 | 21,728 | ||||||||||||||
Long-term debt | 13,252 | 2,255 | 323 | 383 | 441 | 7,784 | 489 | ||||||||||||||
Total shareholders’ equity | 170,077 | 150,058 | 151,154 | 150,032 | 147,826 | 160,123 | 146,258 | ||||||||||||||
Equity to assets ratio | 12.06 | % | 11.61 | % | 11.67 | % | 11.42 | % | 11.19 | % | 11.85 | % | 11.12 | % | |||||||
Loans to deposits ratio | 79.34 | % | 76.52 | % | 76.62 | % | 72.74 | % | 70.65 | % | 78.00 | % | 71.46 | % | |||||||
Asset Quality | |||||||||||||||||||||
Net charge-offs (recoveries) | $ | 150 | (47 | ) | (7 | ) | (36 | ) | 168 | 103 | 430 | ||||||||||
Other real estate owned | 35 | — | — | — | — | 35 | — | ||||||||||||||
Non-accrual loans | 4,065 | 2,744 | 2,965 | 4,387 | 3,747 | 4,065 | 3,747 | ||||||||||||||
Loans past due 90 days or more and still accruing | 5 | 146 | — | 95 | 141 | 5 | 141 | ||||||||||||||
Total nonperforming loans | $ | 4,070 | 2,890 | 2,965 | 4,482 | 3,888 | 4,070 | 3,888 | |||||||||||||
Net charge-offs (recoveries) to average loans | 0.06 | % | (0.02 | )% | 0.00 | % | (0.02 | )% | 0.08 | % | 0.02 | % | 0.11 | % | |||||||
Allowance for loan losses to total loans | 0.31 | % | 0.41 | % | 0.40 | % | 0.41 | % | 0.41 | % | 0.31 | % | 0.41 | % | |||||||
Nonperforming loans to total loans | 0.35 | % | 0.34 | % | 0.35 | % | 0.54 | % | 0.47 | % | 0.35 | % | 0.47 | % | |||||||
Nonperforming assets to total assets | 0.25 | % | 0.22 | % | 0.23 | % | 0.34 | % | 0.29 | % | 0.25 | % | 0.29 | % | |||||||
Assets Under Management | |||||||||||||||||||||
LCNB Corp. total assets | $ | 1,631,442 | 1,288,791 | 1,295,638 | 1,314,319 | 1,335,571 | |||||||||||||||
Trust and investments (fair value) | 370,587 | 359,766 | 362,486 | 326,642 | 315,450 | ||||||||||||||||
Mortgage loans serviced | 125,806 | 90,630 | 92,818 | 96,241 | 98,234 | ||||||||||||||||
Cash management | 48,369 | 72,372 | 84,344 | 77,780 | 45,519 | ||||||||||||||||
Brokerage accounts (fair value) | 238,651 | 230,168 | 229,006 | 219,960 | 209,019 | ||||||||||||||||
Total assets managed | $ | 2,414,855 | 2,041,727 | 2,064,292 | 2,034,942 | 2,003,793 | |||||||||||||||
Non-GAAP Financial Measures | |||||||||||||||||||||
Net income | $ | 2,738 | 2,713 | 3,617 | 3,106 | 3,003 | 5,451 | 6,249 | |||||||||||||
Add: merger-related expenses, net of tax | 710 | 621 | 87 | — | — | 1,331 | — | ||||||||||||||
Core net income | $ | 3,448 | 3,334 | 3,704 | 3,106 | 3,003 | 6,782 | 6,249 | |||||||||||||
Basic core earnings per share | 0.31 | 0.33 | 0.37 | 0.31 | 0.30 | 0.64 | 0.62 | ||||||||||||||
Diluted core earnings per share | 0.31 | 0.33 | 0.37 | 0.31 | 0.30 | 0.64 | 0.62 | ||||||||||||||
Adjusted return on average assets | 0.98 | % | 1.05 | % | 1.16 | % | 0.94 | % | 0.91 | % | 1.01 | % | 0.96 | % | |||||||
Adjusted return on average equity | 8.13 | % | 9.01 | % | 9.94 | % | 8.22 | % | 8.15 | % | 8.54 | % | 8.61 | % | |||||||
Core efficiency ratio (tax equivalent) | 68.73 | % | 66.67 | % | 62.34 | % | 65.56 | % | 64.82 | % | 68.18 | % | 63.43 | % | |||||||
LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(Dollars in thousands)
June 30, 2018 (Unaudited) | December 31, 2017 | |||||
ASSETS: | ||||||
Cash and due from banks | $ | 23,123 | 21,159 | |||
Interest-bearing demand deposits | 1,778 | 4,227 | ||||
Total cash and cash equivalents | 24,901 | 25,386 | ||||
Interest-bearing time deposits | 9,852 | — | ||||
Investment securities: | ||||||
Equity securities with a readily determinable fair value, at fair value | 2,188 | 2,160 | ||||
Equity securities without a readily determinable fair value, at cost | 2,099 | 1,099 | ||||
Debt securities, available-for-sale, at fair value | 257,721 | 275,213 | ||||
Debt securities, held-to-maturity, at cost | 31,610 | 32,571 | ||||
Federal Reserve Bank stock, at cost | 2,732 | 2,732 | ||||
Federal Home Loan Bank stock, at cost | 4,845 | 3,638 | ||||
Loans, net | 1,155,495 | 845,657 | ||||
Premises and equipment, net | 33,257 | 34,927 | ||||
Premises held for sale, net | 512 | — | ||||
Goodwill | 59,160 | 30,183 | ||||
Core deposit and other intangibles | 5,501 | 3,799 | ||||
Bank owned life insurance | 28,354 | 27,985 | ||||
Other assets | 13,215 | 10,288 | ||||
TOTAL ASSETS | $ | 1,631,442 | 1,295,638 | |||
LIABILITIES: | ||||||
Deposits: | ||||||
Noninterest-bearing | $ | 343,172 | 283,212 | |||
Interest-bearing | 1,037,712 | 802,609 | ||||
Total deposits | 1,380,884 | 1,085,821 | ||||
Short-term borrowings | — | 47,000 | ||||
Long-term debt | 27,085 | 303 | ||||
Accrued interest and other liabilities | 11,107 | 12,243 | ||||
TOTAL LIABILITIES | 1,419,076 | 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 June 30, 2018 and December 31, 2017; issued 14,052,862 and 10,776,686 shares at June 30, 2018 and December 31, 2017, respectively | 140,870 | 76,977 | ||||
Retained earnings | 89,544 | 87,301 | ||||
Treasury shares at cost, 753,627 shares at June 30, 2018 and December 31, 2017 | (11,665 | ) | (11,665 | ) | ||
Accumulated other comprehensive loss, net of taxes | (6,383 | ) | (2,342 | ) | ||
TOTAL SHAREHOLDERS' EQUITY | 212,366 | 150,271 | ||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 1,631,442 | 1,295,638 | |||
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, | |||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||
INTEREST INCOME: | ||||||||||||
Interest and fees on loans | $ | 10,703 | 8,823 | 20,116 | 17,738 | |||||||
Dividends on equity securities with a readily determinable fair value | 16 | 16 | 31 | 31 | ||||||||
Dividends on equity securities without a readily determinable fair value | 8 | 5 | 15 | 11 | ||||||||
Interest on debt securities, taxable | 934 | 1,128 | 1,865 | 2,200 | ||||||||
Interest on debt securities, non-taxable | 680 | 795 | 1,384 | 1,594 | ||||||||
Other short-term investments | 197 | 167 | 269 | 224 | ||||||||
TOTAL INTEREST INCOME | 12,538 | 10,934 | 23,680 | 21,798 | ||||||||
INTEREST EXPENSE: | ||||||||||||
Interest on deposits | 1,096 | 846 | 1,967 | 1,689 | ||||||||
Interest on short-term borrowings | 7 | 12 | 76 | 42 | ||||||||
Interest on long-term debt | 67 | 3 | 81 | 7 | ||||||||
TOTAL INTEREST EXPENSE | 1,170 | 861 | 2,124 | 1,738 | ||||||||
NET INTEREST INCOME | 11,368 | 10,073 | 21,556 | 20,060 | ||||||||
PROVISION FOR LOAN LOSSES | 224 | 222 | 303 | 237 | ||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 11,144 | 9,851 | 21,253 | 19,823 | ||||||||
NON-INTEREST INCOME: | ||||||||||||
Fiduciary income | 942 | 881 | 1,906 | 1,733 | ||||||||
Service charges and fees on deposit accounts | 1,426 | 1,312 | 2,731 | 2,534 | ||||||||
Net gains (losses) on sales of securities | (1 | ) | 140 | (1 | ) | 140 | ||||||
Bank owned life insurance income | 182 | 297 | 368 | 486 | ||||||||
Gains from sales of loans | 97 | 63 | 119 | 102 | ||||||||
Other operating income | 145 | 97 | 304 | 225 | ||||||||
TOTAL NON-INTEREST INCOME | 2,791 | 2,790 | 5,427 | 5,220 | ||||||||
NON-INTEREST EXPENSE: | ||||||||||||
Salaries and employee benefits | 5,128 | 4,703 | 10,105 | 9,229 | ||||||||
Equipment expenses | 268 | 264 | 521 | 475 | ||||||||
Occupancy expense, net | 658 | 636 | 1,385 | 1,204 | ||||||||
State financial institutions tax | 296 | 286 | 599 | 570 | ||||||||
Marketing | 284 | 216 | 416 | 359 | ||||||||
Amortization of intangibles | 188 | 188 | 373 | 373 | ||||||||
FDIC insurance premiums | 99 | 108 | 198 | 212 | ||||||||
Contracted services | 391 | 375 | 706 | 623 | ||||||||
Other real estate owned | 1 | — | 3 | 5 | ||||||||
Merger-related expenses | 855 | — | 1,613 | — | ||||||||
Other non-interest expense | 2,543 | 1,835 | 4,341 | 3,529 | ||||||||
TOTAL NON-INTEREST EXPENSE | 10,711 | 8,611 | 20,260 | 16,579 | ||||||||
INCOME BEFORE INCOME TAXES | 3,224 | 4,030 | 6,420 | 8,464 | ||||||||
PROVISION FOR INCOME TAXES | 486 | 1,027 | 969 | 2,215 | ||||||||
NET INCOME | $ | 2,738 | 3,003 | 5,451 | 6,249 | |||||||
Dividends declared per common share | $ | 0.16 | 0.16 | 0.32 | 0.32 | |||||||
Earnings per common share: | ||||||||||||
Basic | 0.25 | 0.30 | 0.52 | 0.62 | ||||||||
Diluted | 0.25 | 0.30 | 0.52 | 0.62 | ||||||||
Weighted average common shares outstanding: | ||||||||||||
Basic | 11,099,485 | 10,004,422 | 10,563,030 | 9,999,765 | ||||||||
Diluted | 11,105,014 | 10,011,312 | 10,568,792 | 10,007,192 | ||||||||
Contacts
LCNB Corp.
Steve P. Foster, CEO & President, 800-344-BANK
Robert C. Haines II, Executive Vice President and CFO, 800-344-BANK