LCNB LCNB Corporation

LCNB Corp. (NASDAQ: LCNB) today announced net income of $2,277,000 (total basic and diluted earnings per share of $0.34) for the three months ended March 31, 2012. Commenting on 2012 earnings, LCNB CEO Steve Wilson stated, “Despite a weak economy, LCNB’s financial results for the first quarter of 2012 were strong. Net income from continuing operations increased 54.1% over results from the first quarter 2011, while total deposits increased 1.8% since December 31, 2011. Our success allowed us to maintain a quarterly dividend to shareholders of $0.16 per share.”

Net income of $2,277,000 for the first quarter 2012 compares to net income from continuing operations for the first quarter 2011 of $1,478,000 (total basic and diluted earnings per share of $0.22). Income increased due to increases in net interest income and non-interest income and decreases in the provision for loan losses and non-interest expense. Net income in 2011 included income from discontinued operations of $824,000, which consisted of a gain recognized on the sale of LCNB’s insurance agency subsidiary, Dakin Insurance Agency, Inc., less certain related closing costs, taxes, and a curtailment expense recognized in LCNB’s nonqualified defined benefit retirement plan due to the sale.

Net loan charge-offs for the first quarter 2012 and 2011 totaled $256,000 and $374,000, respectively. Non-accrual loans and loans past due 90 days or more and still accruing interest totaled $3,174,000 or 0.69% of total loans at March 31, 2012, compared to $3,707,000 or 0.80% of total loans at December 31, 2011. The decrease was primarily due to the foreclosure of a non-accrual commercial real estate loan during the first quarter 2012. Consequently, other real estate owned (which includes property acquired through foreclosure or deed-in-lieu of foreclosure and also includes property deemed to be in-substance foreclosed) and other repossessed assets increased from $1,642,000 at December 31, 2011 to $2,091,000 at March 31, 2012.

Net interest income for the first quarter 2012 was $51,000 greater than results for the first quarter 2011 primarily due to an increase in average interest earning assets, partially offset by a decrease in the net interest margin.

Non-interest income for the first quarter 2012 was $421,000 greater than the comparable period in 2011 primarily due to increases in trust income and gains recognized on the sale of investment securities and mortgage loans.

Non-interest expense for the first quarter 2012 was $337,000 less than the comparable period in 2011 primarily due to decreases in FDIC insurance premiums and in other expenses. The decrease in other expenses in 2012 reflects the absences of a loss on a standby letter of credit and certain environmental remediation costs recognized during the first quarter 2011.

LCNB Corp. is a financial holding company headquartered in Lebanon, Ohio. LCNB Corp.’s only business is ownership of LCNB National Bank, which has 25 offices located in Warren, Butler, Montgomery, Clinton, Clermont, and Hamilton Counties, Ohio. Additional information about LCNB Corp. and information about products and services offered by LCNB National Bank can be found on the internet at www.lcnb.com.

Certain matters disclosed herein may be deemed to be forward-looking statements that involve risks and uncertainties, including regulatory policy changes, interest rate fluctuations, loan demand, loan delinquencies and losses, and other risks. Actual strategies and results in future time periods may differ materially from those currently expected. Such forward-looking statements represent management’s judgment as of the current date. LCNB disclaims any intent or obligation to update such forward-looking statements. LCNB intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

 

LCNB Corp. and Subsidiaries

Financial Highlights

(Dollars in thousands, except per share amounts)

  Condensed Income Statement

Three Months Ended

March 31,

2012     2011 Interest income $ 7,731 8,130 Interest expense 1,322 1,772 Net interest income 6,409 6,358 Provision for loan losses 215 664 Net interest income after provision 6,194 5,694 Non-interest income 2,336 1,915 Non-interest expense 5,448 5,785 Income before income taxes 3,082 1,824 Provision for income taxes 805 346 Net income from continuing operations 2,277 1,478 Income from discontinued operations, net of taxes - 824 Net income $ 2,277 2,302   Dividends per common share $ 0.16 0.16 Basic earnings per common share: Continuing operations $ 0.34 0.22 Discontinued operations - 0.12 Diluted earnings per common share: Continuing operations $ 0.34 0.22 Discontinued operations - 0.12 Average shares outstanding: Basic 6,706,295 6,689,743 Diluted 6,773,451 6,741,767   Selected Financial Ratios Return on average assets 1.15% 1.22% Return on average equity 11.56% 13.16% Dividend payout ratio 47.06% 47.06% Net interest margin (tax equivalent) 3.69% 3.87%   Selected Balance Sheet Items March 31, December 31, 2012 2011 Investment securities $ 265,829 267,771   Loans 456,981 461,262 Less allowance for loan losses 2,890 2,931 Net loans 454,091 458,331   Total assets 791,905 791,570 Total deposits 675,566 663,562 Short-term borrowings 10,590 21,596 Long-term debt 20,731 21,373 Total shareholders’ equity 78,513 77,960   Shares outstanding at period end 6,711,691 6,704,723   Book value per share $ 11.70 11.63 Equity to assets ratio 9.91% 9.85%   Assets Under Management LCNB Corp. total assets $ 791,905 791,570 Trust and investments (fair value) 235,205 221,950 Loans serviced 68,250 67,410 Business cash management 8,682 8,583 Brokerage accounts (fair value) 87,250 78,863 Total assets managed $ 1,191,292 1,168,376