Exhibit 99.2
LCNB Corp. and Subsidiaries
Financial Highlights
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended | Year Ended | ||||||||||||||||||||
12/31/2019 | 9/30/2019 | 6/30/2019 | 3/31/2019 | 12/31/2018 | 12/31/2019 | 12/31/2018 | |||||||||||||||
Condensed Income Statement | |||||||||||||||||||||
Interest income | $ | 16,424 | 16,329 | 16,328 | 16,113 | 15,844 | 65,194 | 54,594 | |||||||||||||
Interest expense | 2,577 | 2,751 | 2,738 | 2,722 | 2,334 | 10,788 | 6,425 | ||||||||||||||
Net interest income | 13,847 | 13,578 | 13,590 | 13,391 | 13,510 | 54,406 | 48,169 | ||||||||||||||
Provision (credit) for loan losses | (6 | ) | 264 | 54 | (105 | ) | (39 | ) | 207 | 923 | |||||||||||
Net interest income after provision | 13,853 | 13,314 | 13,536 | 13,496 | 13,549 | 54,199 | 47,246 | ||||||||||||||
Non-interest income | 3,222 | 3,356 | 2,998 | 2,772 | 2,702 | 12,348 | 11,050 | ||||||||||||||
Non-interest expense | 11,007 | 10,982 | 10,833 | 10,700 | 9,925 | 43,522 | 40,502 | ||||||||||||||
Income before income taxes | 6,068 | 5,688 | 5,701 | 5,568 | 6,326 | 23,025 | 17,794 | ||||||||||||||
Provision for income taxes | 1,238 | 961 | 973 | 941 | 1,133 | 4,113 | 2,949 | ||||||||||||||
Net income | $ | 4,830 | 4,727 | 4,728 | 4,627 | 5,193 | 18,912 | 14,845 | |||||||||||||
Amort/Accret income on acquired loans | $ | 400 | 302 | 355 | 224 | 229 | 1,281 | 567 | |||||||||||||
Amort/Accret expenses on acquired interest-bearing liabilities | $ | 3 | 4 | 142 | 144 | 149 | 293 | 363 | |||||||||||||
Tax-equivalent net interest income | $ | 13,937 | 13,679 | 13,700 | 13,536 | 13,680 | 54,852 | 48,883 | |||||||||||||
Per Share Data | |||||||||||||||||||||
Dividends per share | $ | 0.18 | 0.17 | 0.17 | 0.17 | 0.17 | 0.69 | 0.65 | |||||||||||||
Basic earnings per common share | $ | 0.37 | 0.36 | 0.36 | 0.35 | 0.40 | 1.44 | 1.24 | |||||||||||||
Diluted earnings per common share | $ | 0.37 | 0.36 | 0.36 | 0.35 | 0.40 | 1.44 | 1.24 | |||||||||||||
Book value per share | $ | 17.63 | 17.44 | 17.18 | 16.83 | 16.47 | 17.63 | 16.47 | |||||||||||||
Tangible book value per share | $ | 12.78 | 12.57 | 12.31 | 12.05 | 11.67 | 12.78 | 11.67 | |||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||
Basic | 12,912,106 | 12,932,950 | 13,192,691 | 13,283,634 | 13,285,386 | 13,078,920 | 11,935,350 | ||||||||||||||
Diluted | 12,916,000 | 12,937,145 | 13,196,665 | 13,287,338 | 13,290,499 | 13,082,893 | 11,942,253 | ||||||||||||||
Shares outstanding at period end | 12,936,783 | 12,927,463 | 12,978,554 | 13,314,148 | 13,295,276 | 12,936,783 | 13,295,276 | ||||||||||||||
Selected Financial Ratios | |||||||||||||||||||||
Return on average assets | 1.17 | % | 1.13 | % | 1.16 | % | 1.15 | % | 1.27 | % | 1.15 | % | 1.00 | % | |||||||
Return on average equity | 8.42 | % | 8.33 | % | 8.46 | % | 8.47 | % | 9.55 | % | 8.42 | % | 7.90 | % | |||||||
Dividend payout ratio | 48.65 | % | 47.22 | % | 47.22 | % | 48.57 | % | 42.50 | % | 47.92 | % | 52.42 | % | |||||||
Net interest margin (tax equivalent) | 3.76 | % | 3.67 | % | 3.72 | % | 3.71 | % | 3.69 | % | 3.71 | % | 3.63 | % | |||||||
Efficiency ratio (tax equivalent) | 64.15 | % | 64.47 | % | 64.87 | % | 65.61 | % | 60.58 | % | 64.76 | % | 67.58 | % | |||||||
Selected Balance Sheet Items | |||||||||||||||||||||
Cash and cash equivalents | $ | 20,765 | 22,826 | 23,185 | 19,527 | 20,040 | |||||||||||||||
Debt and equity securities | 219,791 | 239,730 | 246,701 | 264,559 | 282,813 | ||||||||||||||||
Loans: | |||||||||||||||||||||
Commercial and industrial | $ | 78,306 | 71,576 | 79,513 | 79,725 | 77,740 | |||||||||||||||
Commercial, secured by real estate | 804,953 | 797,842 | 793,863 | 764,424 | 740,647 | ||||||||||||||||
Residential real estate | 322,533 | 320,703 | 326,029 | 334,227 | 349,127 | ||||||||||||||||
Consumer | 25,232 | 23,918 | 19,649 | 17,409 | 17,283 | ||||||||||||||||
Agricultural | 11,509 | 11,525 | 10,843 | 10,900 | 13,297 | ||||||||||||||||
Other, including deposit overdrafts | 1,193 | 456 | 373 | 409 | 450 | ||||||||||||||||
Deferred net origination costs (fees) | (275 | ) | (128 | ) | (9 | ) | 40 | 79 | |||||||||||||
Loans, gross | 1,243,451 | 1,225,892 | 1,230,261 | 1,207,134 | 1,198,623 | ||||||||||||||||
Less allowance for loan losses | 4,045 | 4,167 | 4,112 | 4,126 | 4,046 | ||||||||||||||||
Loans, net | $ | 1,239,406 | 1,221,725 | 1,226,149 | 1,203,008 | 1,194,577 | |||||||||||||||
Total earning assets | $ | 1,466,988 | 1,470,074 | 1,482,913 | 1,476,862 | 1,483,166 | |||||||||||||||
Total assets | 1,639,308 | 1,644,447 | 1,642,012 | 1,632,387 | 1,636,927 | ||||||||||||||||
Total deposits | 1,348,280 | 1,355,383 | 1,357,959 | 1,347,857 | 1,300,919 | ||||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||||||||
12/31/2019 | 9/30/2019 | 6/30/2019 | 3/31/2019 | 12/31/2018 | 12/31/2019 | 12/31/2018 | |||||||||||||||
Selected Balance Sheet Items, continued | |||||||||||||||||||||
Short-term borrowings | — | — | — | — | 56,230 | ||||||||||||||||
Long-term debt | 40,994 | 41,990 | 41,986 | 42,982 | 47,032 | ||||||||||||||||
Total shareholders’ equity | 228,048 | 225,492 | 222,972 | 224,018 | 218,985 | ||||||||||||||||
Equity to assets ratio | 13.91 | % | 13.71 | % | 13.58 | % | 13.72 | % | 13.38 | % | |||||||||||
Loans to deposits ratio | 92.22 | % | 90.45 | % | 90.60 | % | 89.56 | % | 92.14 | % | |||||||||||
Tangible common equity (TCE) | $ | 165,304 | 162,485 | 159,702 | 160,488 | 155,197 | |||||||||||||||
Tangible common assets (TCA) | 1,576,564 | 1,581,440 | 1,578,742 | 1,568,857 | 1,573,139 | ||||||||||||||||
TCE/TCA | 10.49 | % | 10.27 | % | 10.12 | % | 10.23 | % | 9.87 | % | |||||||||||
Selected Average Balance Sheet Items | |||||||||||||||||||||
Cash and cash equivalents | $ | 26,501 | 28,293 | 29,523 | 25,080 | 20,685 | 27,321 | 23,910 | |||||||||||||
Debt and equity securities | 231,115 | 243,553 | 249,954 | 266,081 | 291,433 | 247,569 | 303,839 | ||||||||||||||
Loans | $ | 1,230,845 | 1,227,806 | 1,217,726 | 1,208,809 | 1,177,061 | 1,221,375 | 1,038,159 | |||||||||||||
Less allowance for loan losses | 4,076 | 3,986 | 4,088 | 4,074 | 4,016 | 4,056 | 3,822 | ||||||||||||||
Net loans | $ | 1,226,769 | 1,223,820 | 1,213,638 | 1,204,735 | 1,173,045 | 1,217,319 | 1,034,337 | |||||||||||||
Total earning assets | $ | 1,469,469 | 1,480,096 | 1,479,225 | 1,480,634 | 1,471,650 | 1,477,333 | 1,347,162 | |||||||||||||
Total assets | 1,643,793 | 1,654,034 | 1,637,645 | 1,635,416 | 1,626,029 | 1,642,591 | 1,488,941 | ||||||||||||||
Total deposits | 1,352,101 | 1,365,702 | 1,352,449 | 1,333,529 | 1,333,673 | 1,351,036 | 1,258,075 | ||||||||||||||
Short-term borrowings | 622 | 468 | 243 | 23,235 | 36,348 | 6,064 | 13,967 | ||||||||||||||
Long-term debt | 41,742 | 41,988 | 42,567 | 44,676 | 25,536 | 42,733 | 16,789 | ||||||||||||||
Total shareholders’ equity | 227,595 | 225,216 | 224,203 | 221,470 | 215,739 | 224,639 | 187,915 | ||||||||||||||
Equity to assets ratio | 13.85 | % | 13.62 | % | 13.69 | % | 13.54 | % | 13.27 | % | 13.68 | % | 12.62 | % | |||||||
Loans to deposits ratio | 91.03 | % | 89.90 | % | 90.04 | % | 90.65 | % | 88.26 | % | 90.40 | % | 82.52 | % | |||||||
Asset Quality | |||||||||||||||||||||
Net charge-offs (recoveries) | $ | 115 | 209 | 68 | (185 | ) | (68 | ) | 207 | 280 | |||||||||||
Other real estate owned | 197 | 197 | 197 | 244 | 244 | 197 | 244 | ||||||||||||||
Non-accrual loans | 3,210 | 3,523 | 2,962 | 2,845 | 2,951 | 3,210 | 2,951 | ||||||||||||||
Loans past due 90 days or more and still accruing | — | — | 24 | 177 | 149 | — | 149 | ||||||||||||||
Total nonperforming loans | $ | 3,210 | 3,523 | 2,986 | 3,022 | 3,100 | 3,210 | 3,100 | |||||||||||||
Net charge-offs (recoveries) to average loans | 0.04 | % | 0.07 | % | 0.02 | % | (0.06 | )% | (0.02 | )% | 0.02 | % | 0.03 | % | |||||||
Allowance for loan losses to total loans | 0.33 | % | 0.34 | % | 0.33 | % | 0.34 | % | 0.34 | % | 0.33 | % | 0.34 | % | |||||||
Nonperforming loans to total loans | 0.26 | % | 0.29 | % | 0.24 | % | 0.25 | % | 0.26 | % | 0.26 | % | 0.26 | % | |||||||
Nonperforming assets to total assets | 0.21 | % | 0.23 | % | 0.19 | % | 0.20 | % | 0.20 | % | 0.21 | % | 0.20 | % | |||||||
Assets Under Management | |||||||||||||||||||||
LCNB Corp. total assets | $ | 1,639,308 | 1,644,447 | 1,642,012 | 1,632,387 | 1,636,927 | |||||||||||||||
Trust and investments (fair value) | 435,664 | 411,724 | 382,462 | 367,649 | 337,549 | ||||||||||||||||
Mortgage loans serviced | 93,596 | 90,784 | 88,444 | 89,049 | 97,685 | ||||||||||||||||
Cash management | 75,948 | 117,530 | 71,973 | 55,981 | 48,906 | ||||||||||||||||
Brokerage accounts (fair value) | 268,059 | 262,038 | 260,202 | 245,758 | 233,751 | ||||||||||||||||
Total assets managed | $ | 2,512,575 | 2,526,523 | 2,445,093 | 2,390,824 | 2,354,818 | |||||||||||||||
Non-GAAP Financial Measures | |||||||||||||||||||||
Net income | $ | 4,830 | 4,727 | 4,728 | 4,627 | 5,193 | 18,912 | 14,845 | |||||||||||||
Add: merger-related expenses, net of tax | 0 | 21 | 16 | 53 | 148 | 90 | 1,753 | ||||||||||||||
Adjusted net income | $ | 4,830 | 4,748 | 4,744 | 4,680 | 5,341 | 19,002 | 16,598 | |||||||||||||
Basic adjusted earnings per share | 0.37 | 0.37 | 0.36 | 0.36 | 0.41 | 1.46 | 1.39 | ||||||||||||||
Diluted adjusted earnings per share | 0.37 | 0.37 | 0.36 | 0.36 | 0.41 | 1.46 | 1.39 | ||||||||||||||
Adjusted return on average assets | 1.17 | % | 1.14 | % | 1.16 | % | 1.16 | % | 1.30 | % | 1.16 | % | 1.11 | % | |||||||
Adjusted return on average equity | 8.42 | % | 8.36 | % | 8.49 | % | 8.57 | % | 9.82 | % | 8.46 | % | 8.83 | % |
LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(Dollars in thousands)
December 31, 2019 (Unaudited) | December 31, 2018 | |||||
ASSETS: | ||||||
Cash and due from banks | $ | 17,019 | 18,310 | |||
Interest-bearing demand deposits | 3,746 | 1,730 | ||||
Total cash and cash equivalents | 20,765 | 20,040 | ||||
Interest-bearing time deposits | — | 996 | ||||
Investment securities: | ||||||
Equity securities with a readily determinable fair value, at fair value | 2,312 | 2,078 | ||||
Equity securities without a readily determinable fair value, at cost | 2,099 | 2,099 | ||||
Debt securities, available-for-sale, at fair value | 178,000 | 238,421 | ||||
Debt securities, held-to-maturity, at cost | 27,525 | 29,721 | ||||
Federal Reserve Bank stock, at cost | 4,652 | 4,653 | ||||
Federal Home Loan Bank stock, at cost | 5,203 | 4,845 | ||||
Loans, net | 1,239,406 | 1,194,577 | ||||
Premises and equipment, net | 34,787 | 32,627 | ||||
Operating leases right of use asset | 5,444 | — | ||||
Goodwill | 59,221 | 59,221 | ||||
Core deposit and other intangibles | 4,006 | 5,042 | ||||
Bank owned life insurance | 41,667 | 28,723 | ||||
Other assets | 14,221 | 13,884 | ||||
TOTAL ASSETS | $ | 1,639,308 | 1,636,927 | |||
LIABILITIES: | ||||||
Deposits: | ||||||
Noninterest-bearing | $ | 354,391 | 322,571 | |||
Interest-bearing | 993,889 | 978,348 | ||||
Total deposits | 1,348,280 | 1,300,919 | ||||
Short-term borrowings | — | 56,230 | ||||
Long-term debt | 40,994 | 47,032 | ||||
Operating leases liability | 5,446 | — | ||||
Accrued interest and other liabilities | 16,540 | 13,761 | ||||
TOTAL LIABILITIES | 1,411,260 | 1,417,942 | ||||
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 December 31, 2019 and 2018; issued 14,111,810 and 14,070,303 shares at December 31, 2019 and 2018, respectively | 141,791 | 141,170 | ||||
Retained earnings | 104,431 | 94,547 | ||||
Treasury shares at cost, 1,175,027 and 775,027 shares at December 31, 2019 and 2018, respectively | (18,847 | ) | (12,013 | ) | ||
Accumulated other comprehensive income (loss), net of taxes | 673 | (4,719 | ) | |||
TOTAL SHAREHOLDERS' EQUITY | 228,048 | 218,985 | ||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 1,639,308 | 1,636,927 |
LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended December 31, | Year Ended December 31, | |||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||
INTEREST INCOME: | ||||||||||||
Interest and fees on loans | $ | 14,937 | 14,010 | 59,009 | 47,489 | |||||||
Dividends on equity securities with a readily determinable fair value | 15 | 17 | 62 | 65 | ||||||||
Dividends on equity securities without a readily determinable fair value | 17 | 17 | 65 | 39 | ||||||||
Interest on debt securities, taxable | 881 | 900 | 3,601 | 3,666 | ||||||||
Interest on debt securities, non-taxable | 337 | 641 | 1,677 | 2,686 | ||||||||
Interest on interest-bearing time deposits | — | 24 | 11 | 58 | ||||||||
Other investments | 237 | 235 | 769 | 591 | ||||||||
TOTAL INTEREST INCOME | 16,424 | 15,844 | 65,194 | 54,594 | ||||||||
INTEREST EXPENSE: | ||||||||||||
Interest on deposits | 2,301 | 1,976 | 9,526 | 5,753 | ||||||||
Interest on short-term borrowings | 3 | 223 | 227 | 311 | ||||||||
Interest on long-term debt | 273 | 135 | 1,035 | 361 | ||||||||
TOTAL INTEREST EXPENSE | 2,577 | 2,334 | 10,788 | 6,425 | ||||||||
NET INTEREST INCOME | 13,847 | 13,510 | 54,406 | 48,169 | ||||||||
PROVISION (CREDIT) FOR LOAN LOSSES | (6 | ) | (39 | ) | 207 | 923 | ||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 13,853 | 13,549 | 54,199 | 47,246 | ||||||||
NON-INTEREST INCOME: | ||||||||||||
Fiduciary income | 1,139 | 971 | 4,354 | 3,958 | ||||||||
Service charges and fees on deposit accounts | 1,454 | 1,420 | 5,875 | 5,590 | ||||||||
Net losses on sales of debt securities | (4 | ) | — | (41 | ) | (8 | ) | |||||
Bank owned life insurance income | 289 | 185 | 943 | 738 | ||||||||
Gains from sales of loans | 121 | 41 | 328 | 223 | ||||||||
Other operating income | 223 | 85 | 889 | 549 | ||||||||
TOTAL NON-INTEREST INCOME | 3,222 | 2,702 | 12,348 | 11,050 | ||||||||
NON-INTEREST EXPENSE: | ||||||||||||
Salaries and employee benefits | 6,512 | 5,488 | 25,320 | 21,279 | ||||||||
Equipment expenses | 343 | 341 | 1,209 | 1,138 | ||||||||
Occupancy expense, net | 703 | 742 | 2,961 | 2,861 | ||||||||
State financial institutions tax | 362 | 299 | 1,669 | 1,197 | ||||||||
Marketing | 310 | 321 | 1,319 | 1,119 | ||||||||
Amortization of intangibles | 263 | 263 | 1,043 | 922 | ||||||||
FDIC insurance premiums, net | — | 130 | 225 | 419 | ||||||||
Contracted services | 471 | 454 | 1,865 | 1,547 | ||||||||
Other real estate owned | 1 | 16 | 53 | 20 | ||||||||
Merger-related expenses | — | 164 | 114 | 2,123 | ||||||||
Other non-interest expense | 2,042 | 1,707 | 7,744 | 7,877 | ||||||||
TOTAL NON-INTEREST EXPENSE | 11,007 | 9,925 | 43,522 | 40,502 | ||||||||
INCOME BEFORE INCOME TAXES | 6,068 | 6,326 | 23,025 | 17,794 | ||||||||
PROVISION FOR INCOME TAXES | 1,238 | 1,133 | 4,113 | 2,949 | ||||||||
NET INCOME | $ | 4,830 | 5,193 | 18,912 | 14,845 | |||||||
Dividends declared per common share | $ | 0.18 | 0.17 | 0.69 | 0.65 | |||||||
Earnings per common share: | ||||||||||||
Basic | 0.37 | 0.40 | 1.44 | 1.24 | ||||||||
Diluted | 0.37 | 0.40 | 1.44 | 1.24 | ||||||||
Weighted average common shares outstanding: | ||||||||||||
Basic | 12,912,106 | 13,285,386 | 13,078,920 | 11,935,350 | ||||||||
Diluted | 12,916,000 | 13,290,499 | 13,082,893 | 11,942,253 |
Contacts
LCNB Corp.
Eric J. Meilstrup, CEO and President, 800-344-BANK
Robert C. Haines II, Executive Vice President and CFO, 800-344-BANK