Second quarter results include the initial
contribution of the April 12, 2024 Eagle Financial Bancorp, Inc.
acquisition and the growing benefits of the November 1, 2023
Cincinnati Bancorp, Inc. acquisition
LCNB ended the quarter with record total
assets, record LCNB Wealth Management assets, and record total
assets managed of $4.21 billion
Non-interest income for the 2024 second quarter
increased 11.9% year-over-year to $4.1 million, and up 3.8% from
the first quarter
Net interest margin for the 2024 second quarter
increased 14 basis points from the 2024 first quarter
Management continues to expect year-over-year
earnings growth to reaccelerate in the fourth quarter of 2024
LCNB Corp. ("LCNB") (NASDAQ: LCNB) today announced financial
results for the three months and six months ended June 30,
2024.
Commenting on the financial results, LCNB President and Chief
Executive Officer Eric Meilstrup said, “Our second quarter results
demonstrate the initial contribution of the April 12, 2024 Eagle
Financial Bancorp, Inc. (“EFBI” or “Eagle”) acquisition and the
growing benefits of the November 1, 2023 Cincinnati Bancorp, Inc.
(“Cincinnati Federal”) acquisition. As a result of these
transformative transactions, LCNB's scale increased to $4.21
billion in total assets managed, becoming one of the largest
independent community banks in Ohio. I am extremely proud of how
our teams have come together to successfully integrate the Eagle
and Cincinnati Federal acquisitions. During the 2024 second
quarter, we completed the data and customer conversion of the Eagle
transaction, and we are now on one system under the LCNB
brand.”
Mr. Meilstrup continued, “We believe our financial results are
beginning to reflect the benefits of our larger scale and the
opportunities to provide additional financial services to customers
across our Ohio and Kentucky markets, including expanded wealth
management solutions, greater mortgage loan capabilities, and
additional cash management offerings. As a result, we experienced
year-over-year and sequential growth in non-interest income, and we
saw a 14-basis point sequential increase in our tax equivalent net
interest margin. In addition, I am encouraged by the significant
improvement in adjusted net income, a non-GAAP financial measure
that excludes certain nonrecurring items, over the past three
months, as our 2024 second quarter adjusted net income increased by
56.8% to $4.1 million, or $0.29 per diluted share.”
“We believe we are well positioned for continued improvements in
profitability as a result of the completion of our integration
efforts, our excellent asset quality, and the initiatives we are
pursuing to strengthen our balance sheet. I look forward to
updating shareholders on the progress we are making, as we focus on
providing leading financial services and expanding our product
offerings to more customers throughout our Ohio and Kentucky
communities,” concluded Mr. Meilstrup.
Income Statement
Net income for the 2024 second quarter was $0.9 million,
compared to net income of $4.7 million for the same period last
year. Earnings per basic and diluted share for the 2024 second
quarter were $0.07, compared to $0.42 for the same period last
year. Net income for the six-month period ended June 30, 2024 was
$2.8 million, compared to $8.9 million for the same period last
year. Earnings per basic and diluted share for the six-month period
ended June 30, 2024 were $0.21, compared to $0.79 for the same
period last year.
Adjusted net income for the 2024 second quarter was $4.1
million, or $0.29 per basic and diluted share, compared to $5.0
million, or $0.45 per basic and diluted share, for the same period
last year. Adjusted net income for the first half ended June 30,
2024 was $6.7 million, or $0.49 per basic and diluted share,
compared to $9.2 million, or $0.82 per basic and diluted share, in
the prior year period.
Net interest income for the three months ended June 30, 2024 was
$15.2 million, compared to $14.2 million for the comparable period
in 2023. Net interest income for the six-month period ended June
30, 2024 was $29.1 million, as compared to $28.1 million in the
same period last year. An increase in interest income from loans,
due to a higher volume of average loans outstanding and the average
rates earned on these loans, was partially offset by higher average
balances in interest-bearing demand and money market deposits, IRA
and time certificates, and long-term debt and an increase in rates
paid for these liabilities. For the 2024 second quarter, LCNB’s tax
equivalent net interest margin was 2.86%, compared to 3.28% for the
same period last year. Net interest margin for the six-month period
ended June 30, 2024 was 2.80%, as compared to 3.28% in the same
period last year.
Non-interest income for the three months ended June 30, 2024 was
$4.1 million, compared to $3.6 million for the same period last
year. For the six months ended June 30, 2024, non-interest income
increased $782,000, or by 10.8%, to $8.0 million, compared to $7.2
million for the same period last year. The increase in non-interest
income for both the three- and six-month periods was primarily due
to higher fiduciary income and higher gains on sales of loans.
Partially offsetting non-interest income during the quarter was a
$843,000 pretax loss on the sale of approximately $48.9 million of
below market rate loans acquired from Cincinnati Federal. The
Company estimates an earn-back period of three to four months on
the sale associated with reduced interest expense.
Non-interest expense for the three months ended June 30, 2024
was $17.8 million, compared to $12.1 million for the same period
last year. The $5.7 million increase was primarily due to higher
personnel and operating expenses, as well as one-time merger
related expenses, associated with the Cincinnati Federal and Eagle
acquisitions. For the six months ended June 30, 2024, non-interest
expense was $8.7 million higher than the comparable period in 2023,
partially due to an increase of $3.2 million in salaries and
employee benefit costs, a $459,000 increase in FDIC insurance
premiums, and a $2.7 million increase in merger-related expenses.
In addition, non-interest expense for the 2023 second quarter
benefited from a $425,000 gain recognized on the sale of an office
building that had been closed as a result of LCNB's office
consolidation strategy. The remaining net increase can be
attributed to smaller increases in various other accounts.
Capital Allocation
During the six months ended June 30, 2024, LCNB did not
repurchase any of its outstanding shares. At June 30, 2024, LCNB
had 315,047 shares remaining under its share repurchase
program.
For the second quarter ended June 30, 2024, LCNB paid $0.22 per
share in dividends, a 4.8% increase from $0.21 per share in the
second quarter of last year. Year-to-date, LCNB paid $0.44 per
share in dividends, compared to $0.42 per share for the first half
of last year.
Balance Sheet
Total assets at June 30, 2024 increased 21.6%, to $2.37 billion,
from $1.95 billion at June 30, 2023. Net loans at June 30, 2024
increased 20.9%, to $1.73 billion, compared to $1.43 billion at
June 30, 2023. The year-over-year improvement resulted primarily
from the contribution of continued organic loan growth and the
completion of the Cincinnati Federal and Eagle acquisitions. Not
including the Cincinnati Federal and Eagle acquisitions, total net
loans increased 2.1% organically, or by $30.4 million, from the
same period a year ago.
Loans held for sale totaled $44.0 million, compared to $75.6
million at March 31, 2024, and are primarily composed of loans
scheduled to be sold to an investor during the remainder of 2024.
LCNB anticipates that proceeds from the sale will be used for
general corporate purposes, which may include supporting loan
growth, paying down long-term debt, and adding to liquidity
balances.
Total deposits at June 30, 2024 increased 21.7% to $1.94
billion, compared to $1.60 billion at June 30, 2023. Not including
the Cincinnati Federal and Eagle acquisitions, total deposits
increased 6.8% organically, or by $108.7 million, from June 30,
2023.
As of the transaction date, the fair value of loans acquired
from Eagle totaled $127.0 million and the fair value of deposits
acquired totaled $132.4 million. Core deposit intangibles totaled
$3.8 million and the increase to goodwill was $14.0 million.
Assets Under Management
Total assets managed at June 30, 2024 were a record $4.21
billion, compared to $3.23 billion at June 30, 2023. The
year-over-year increase in total assets managed was primarily due
to the Cincinnati Federal and Eagle acquisitions and organic growth
in LCNB total assets, trust and investments, mortgage loans
serviced, and brokerage accounts. Organically, trust and
investments and brokerage accounts increased due to a higher number
of new LCNB Wealth Management customer accounts and an increase in
the fair value of managed assets. Mortgage loans serviced increased
primarily due to the Cincinnati Federal acquisition.
Asset Quality
For the 2024 second quarter, LCNB recorded a provision for
credit losses of $528,000, compared to a provision for credit
losses of $30,000 for the 2023 second quarter. For the six months
ended June 30, 2024, LCNB recorded a total provision for credit
losses of $653,000, compared to a total recovery of credit losses
of $27,000 for the six months ended June 30, 2023.
Net charge-offs for the 2024 second quarter were $18,000, or
0.00% of average loans, compared to net charge-offs of $33,000, or
0.01% of average loans, annualized, for the same period last year.
For the 2024 six-month period, net charge-offs were $63,000, or
0.01% of average loans, compared to net charge-offs of $49,000, or
0.01% of average loans, for the 2023 six-month period.
Total nonperforming loans, which include non-accrual loans and
loans past due 90 days or more and still accruing interest, were
$3.0 million, or 0.17% of total loans, at June 30, 2024, compared
to $707,000, or 0.05% of total loans, at June 30, 2023. The
year-over-year increase in nonaccrual loans was primarily due to
one commercial real estate relationship, representing a balance of
$2.6 million. LCNB does not foresee a loss on this loan as it is
deemed to have adequate provision based on management’s current
review of the property value. The nonperforming assets to total
assets ratio was 0.13% at June 30, 2024, compared to 0.04% at June
30, 2023.
About LCNB Corp.
LCNB Corp. is a financial holding company headquartered in
Lebanon, Ohio. Through its subsidiary, LCNB National Bank (the
“Bank”), it serves customers and communities in Southwest and
South-Central Ohio and Northern Kentucky. A financial institution
with a long tradition for building strong relationships with
customers and communities, the Bank offers convenient banking
locations in Butler, Clermont, Clinton, Fayette, Franklin,
Hamilton, Montgomery, Preble, Ross, and Warren Counties, Ohio. The
Bank also provides community-oriented banking services to customers
in Northern Kentucky through a bank office in Boone County,
Kentucky. The Bank continually strives to exceed customer
expectations and provides an array of services for all personal and
business banking needs including checking, savings, online banking,
personal lending, business lending, agricultural lending, business
support, deposit and treasury, investment services, trust and IRAs
and stock purchases. LCNB Corp. common shares are traded on the
NASDAQ Capital Market Exchange® under the symbol “LCNB.” Learn more
about LCNB Corp. at www.lcnb.com.
Forward-Looking Statements
Certain statements made in this news release regarding LCNB’s
financial condition, results of operations, plans, objectives,
future performance and business, are “forward-looking statements”
within the meaning of Section 27A of the Securities Act of 1933, as
amended, Section 21E of the Securities Exchange Act of 1934, as
amended, and the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are identified by the fact they
are not historical facts and include words such as “anticipate”,
“could”, “may”, “feel”, “expect”, “believe”, “plan”, and similar
expressions. Please refer to LCNB’s Annual Report on Form 10-K for
the year ended December 31, 2023, as well as its other filings with
the SEC, for a more detailed discussion of risks, uncertainties and
factors that could cause actual results to differ from those
discussed in the forward-looking statements.
These forward-looking statements reflect management's current
expectations based on all information available to management and
its knowledge of LCNB’s business and operations. Additionally,
LCNB’s financial condition, results of operations, plans,
objectives, future performance and business are subject to risks
and uncertainties that may cause actual results to differ
materially. These factors include, but are not limited to:
- the success, impact, and timing of the implementation of LCNB’s
business strategies;
- LCNB’s ability to integrate recent and future acquisitions may
be unsuccessful or may be more difficult, time-consuming, or costly
than expected;
- LCNB may incur increased loan charge-offs in the future and the
allowance for credit losses may be inadequate;
- LCNB may face competitive loss of customers;
- changes in the interest rate environment, which may include
further interest rate increases, may have results on LCNB’s
operations materially different from those anticipated by LCNB’s
market risk management functions;
- changes in general economic conditions and increased
competition could adversely affect LCNB’s operating results;
- changes in regulations and government policies affecting bank
holding companies and their subsidiaries, including changes in
monetary policies, could negatively impact LCNB’s operating
results;
- LCNB may experience difficulties growing loan and deposit
balances;
- United States trade relations with foreign countries could
negatively impact the financial condition of LCNB's customers,
which could adversely affect LCNB 's operating results and
financial condition;
- global geopolitical relations and/or conflicts could create
financial market uncertainty and have negative impacts on
commodities and currency, which could adversely affect LCNB's
operating results and financial condition;
- difficulties with technology or data security breaches,
including cyberattacks, could negatively affect LCNB's ability to
conduct business and its relationships with customers, vendors, and
others;
- adverse weather events and natural disasters and global and/or
national epidemics could negatively affect LCNB’s customers given
its concentrated geographic scope, which could impact LCNB’s
operating results; and
- government intervention in the U.S. financial system, including
the effects of legislative, tax, accounting, and regulatory actions
and reforms, including the Dodd-Frank Wall Street Reform and
Consumer Protection Act, the Jumpstart Our Business Startups Act,
the Consumer Financial Protection Bureau, the capital ratios of
Basel III as adopted by the federal banking authorities, changes in
deposit insurance premium levels, and any such future regulatory
actions or reforms.
Forward-looking statements made herein reflect management's
expectations as of the date such statements are made. Such
information is provided to assist shareholders and potential
investors in understanding current and anticipated financial
operations of LCNB and is included pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
LCNB undertakes no obligation to update any forward-looking
statement to reflect events or circumstances that arise after the
date such statements are made.
Exhibit 99.2
LCNB Corp. and
Subsidiaries
Financial Highlights
(Dollars in thousands, except per
share amounts)
(Unaudited)
Three Months Ended
Six Months Ended
06-30-2024
03-31-2024
12-31-2023
09-30-2023
06-30-2023
06-30-2024
06-30-2023
Condensed Income
Statement
Interest income
$
26,965
$
24,758
$
23,310
19,668
18,703
51,723
36,621
Interest expense
11,748
10,863
8,651
6,097
4,526
22,611
8,502
Net interest income
15,217
13,895
14,659
13,571
14,177
29,112
28,119
Provision for (recovery of) credit
losses
528
125
2,218
(114
)
30
653
(27
)
Net interest income after provision for
(recovery of) credit losses
14,689
13,770
12,441
13,685
14,147
28,459
28,146
Non-interest income
4,080
3,929
4,606
3,578
3,646
8,009
7,227
Non-interest expense
17,825
15,472
17,576
12,244
12,078
33,297
24,603
Income (loss) before income taxes
944
2,227
(529
)
5,019
5,715
3,171
10,770
Provision for (benefit from) income
taxes
19
312
(236
)
949
1,021
331
1,919
Net income (loss)
$
925
$
1,915
$
(293
)
$
4,070
4,694
2,840
8,851
Supplemental
Income Statement Information
Amort/Accrete income on acquired loans
$
1,248
$
776
$
410
—
—
2,024
74
Amort/Accrete expenses on acquired
interest-bearing liabilities
$
638
$
459
$
309
—
—
1,096
—
Tax-equivalent net interest income
$
15,256
$
13,933
$
14,703
13,617
14,223
29,189
28,212
Per Share
Data
Dividends per share
$
0.22
$
0.22
$
0.22
0.21
0.21
0.44
0.42
Basic earnings (loss) per common share
$
0.07
$
0.15
$
(0.02
)
0.37
0.42
0.21
0.79
Diluted earnings (loss) per common
share
$
0.07
$
0.15
$
(0.02
)
0.37
0.42
0.21
0.79
Book value per share
$
17.33
$
17.67
$
17.86
18.10
18.20
17.33
18.20
Tangible book value per share
$
10.08
$
11.26
$
11.42
12.72
12.81
10.08
12.81
Weighted average common shares
outstanding:
Basic
14,033,264
13,112,302
12,378,289
11,038,720
11,056,308
13,610,854
11,122,371
Diluted
14,033,264
13,112,302
12,378,289
11,038,720
11,056,308
13,610,854
11,122,371
Shares outstanding at period end
14,151,755
13,224,276
13,173,569
11,123,382
11,116,080
14,151,755
11,116,080
Selected
Financial Ratios
Return on average assets
0.15
%
0.34
%
(0.05
)%
0.82
%
0.98
%
0.24
%
0.93
%
Return on average equity
1.53
%
3.28
%
(0.53
)%
7.92
%
9.22
%
2.38
%
8.78
%
Return on average tangible common
equity
2.02
%
4.39
%
(0.72
)%
11.21
%
13.07
%
3.17
%
12.46
%
Dividend payout ratio
314.29
%
146.67
%
NM
56.76
%
50.00
%
209.52
%
53.16
%
Net interest margin (tax equivalent)
2.86
%
2.72
%
2.99
%
3.04
%
3.28
%
2.80
%
3.28
%
Efficiency ratio (tax equivalent)
92.19
%
86.62
%
91.02
%
71.21
%
67.59
%
89.51
%
69.42
%
Selected Balance
Sheet Items
Cash and cash equivalents
$
34,872
$
32,951
$
39,723
43,422
26,020
Debt and equity securities
312,241
306,775
318,723
309,094
314,763
Loans:
Commercial and industrial
$
125,703
$
122,229
$
120,411
125,751
127,553
Commercial, secured by real estate
1,117,798
1,099,601
1,107,556
981,787
961,173
Residential real estate
458,949
398,250
459,073
313,286
312,338
Consumer
22,912
24,137
25,578
27,018
29,007
Agricultural
11,685
12,647
10,952
11,278
9,955
Other, including deposit overdrafts
233
73
82
80
69
Deferred net origination fees
(533
)
(583
)
(181
)
(796
)
(844
)
Loans, gross
1,736,747
1,656,354
1,723,471
1,458,404
1,439,251
Less allowance for credit losses
11,270
10,557
10,525
7,932
7,956
Loans, net
$
1,725,477
1,645,797
1,712,946
1,450,472
1,431,295
Loans held for sale
44,002
75,581
—
—
—
NM - Not Meaningful
Three Months Ended
Six Months Ended
06-30-2024
03-31-2024
12-31-2023
09-30-2023
06-30-2023
06-30-2024
06-30-2023
Selected Balance
Sheet Items, continued
Allowance for Credit Losses on
Loans:
Allowance for credit losses, beginning of
period
$
10,557
10,525
7,932
7,956
7,858
Fair value adjustment for purchased credit
deteriorated loans
189
—
493
—
—
Provision for credit losses
542
77
2,203
9
131
Losses charged off
(87
)
(78
)
(126
)
(57
)
(49
)
Recoveries
69
33
23
24
16
Allowance for credit losses, end of
period
$
11,270
10,557
10,525
7,932
7,956
Total earning assets
$
2,058,110
$
1,971,130
$
2,045,382
1,787,796
$
1,756,157
Total assets
2,371,313
2,283,151
2,291,592
1,981,668
1,950,763
Total deposits
1,943,060
1,858,493
1,824,389
1,616,890
1,596,709
Short-term borrowings
—
10,000
97,395
30,000
112,289
Long-term debt
162,150
162,638
113,123
112,641
18,122
Total shareholders’ equity
245,214
233,663
235,303
201,349
202,316
Equity to assets ratio
10.34
%
10.23
%
10.27
%
10.16
%
10.37
%
Loans to deposits ratio
89.38
%
89.12
%
94.47
%
90.20
%
90.14
%
Tangible common equity (TCE)
$
142,679
$
145,850
$
146,999
141,508
142,362
Tangible common assets (TCA)
2,268,778
2,195,338
2,203,288
1,921,827
1,890,809
TCE/TCA
6.29
%
6.64
%
6.67
%
7.36
%
7.53
%
Selected Average
Balance Sheet Items
Cash and cash equivalents
$
39,396
$
51,366
$
49,436
36,177
30,742
45,378
33,205
Debt and equity securities
309,668
310,771
310,274
313,669
321,537
310,222
324,320
Loans, including loans held for sale
$
1,818,253
$
1,722,568
$
1,622,911
1,451,153
1,405,939
1,770,410
1,397,708
Less allowance for credit losses on
loans
11,386
10,523
8,826
7,958
7,860
10,954
7,692
Net loans
$
1,806,867
1,712,045
1,614,085
1,443,195
1,398,079
1,759,456
1,390,016
Total earning assets, including loans held
for sale
$
2,142,064
$
2,056,656
$
1,952,121
1,775,713
1,737,256
2,099,362
1,733,160
Total assets
2,404,782
2,294,766
2,182,477
1,971,269
1,927,956
2,349,774
1,925,004
Total deposits
1,965,987
1,824,546
1,759,677
1,610,508
1,604,346
1,895,268
1,594,159
Short-term borrowings
11,291
65,052
64,899
63,018
79,485
38,171
86,996
Long-term debt
162,555
150,177
115,907
72,550
18,514
156,366
18,747
Total shareholders’ equity
243,927
235,119
220,678
203,967
204,085
239,523
203,257
Equity to assets ratio
10.14
%
10.25
%
10.11
%
10.35
%
10.59
%
10.19
%
10.56
%
Loans to deposits ratio
92.49
%
94.41
%
92.23
%
90.11
%
87.63
%
93.41
%
87.68
%
Asset
Quality
Net charge-offs
$
18
$
45
$
102
33
33
63
49
Other real estate owned
—
—
—
—
—
—
—
Non-accrual loans
$
2,845
$
2,719
$
80
85
451
2,845
451
Loans past due 90 days or more and still
accruing
159
524
72
176
256
159
256
Total nonperforming loans
$
3,004
3,243
152
261
707
3,004
707
Net charge-offs to average loans
0.00
%
0.01
%
0.02
%
0.01
%
0.01
%
0.01
%
0.01
%
Allowance for credit losses on loans to
total loans
0.65
%
0.64
%
0.61
%
0.54
%
0.55
%
Nonperforming loans to total loans
0.17
%
0.20
%
0.01
%
0.02
%
0.05
%
Nonperforming assets to total assets
0.13
%
0.14
%
0.01
%
0.01
%
0.04
%
Three Months Ended
Six Months Ended
06-30-2024
03-31-2024
12-31-2023
09-30-2023
06-30-2023
06-30-2024
06-30-2023
Assets Under
Management
LCNB Corp. total assets
$
2,371,313
2,283,151
2,291,592
1,981,668
1,950,763
Trust and investments (fair value)
897,746
890,800
806,770
731,342
744,149
Mortgage loans serviced
422,951
386,490
391,800
146,483
143,093
Cash management
93,842
13,314
2,375
2,445
2,668
Brokerage accounts (fair value)
419,646
411,211
392,390
368,854
384,889
Total assets managed
$
4,205,498
3,984,966
3,884,927
3,230,792
3,225,562
Reconciliation of
Net Income Less Tax-Effected Merger-Related Costs
Net income (loss)
$
925
1,915
(293
)
4,070
4,694
2,840
8,851
Merger expenses
2,320
775
3,914
302
415
3,095
440
Provision for credit losses on non-PCD
loans
763
—
1,722
—
—
763
—
Loss on sale of below-market acquired
loans
843
—
—
—
—
843
—
Tax effect
(773
)
(90
)
(1,102
)
(3
)
(63
)
(863
)
(67
)
Adjusted net income
$
4,078
2,600
4,241
4,369
5,046
6,678
9,224
Adjusted basic and diluted earnings per
share
$
0.29
$
0.20
$
0.34
0.40
0.45
0.49
0.82
Adjusted return on average assets
0.68
%
0.46
%
0.77
%
0.88
%
1.05
%
0.57
%
0.97
%
Adjusted return on average equity
6.72
%
4.45
%
7.62
%
8.50
%
9.92
%
5.61
%
9.15
%
Three Months Ended June
30,
Three Months Ended March
31,
2024
2023
2024
Average Outstanding
Balance
Interest Earned/ Paid
Average Yield/ Rate
Average Outstanding Balance
Interest Earned/ Paid
Average Yield/ Rate
Average Outstanding Balance
Interest Earned/ Paid
Average Yield/ Rate
Loans (1)
$
1,818,253
24,836
5.49
%
$
1,405,939
16,763
4.78
%
$
1,722,568
22,682
5.30
%
Interest-bearing demand deposits
14,143
215
6.11
%
9,780
144
5.91
%
23,317
324
5.59
%
Federal Reserve Bank stock
6,248
180
11.59
%
4,652
140
12.07
%
5,509
(4
)
(0.29
)%
Federal Home Loan Bank stock
20,152
367
7.32
%
6,713
121
7.23
%
16,239
341
8.45
%
Investment securities:
Equity securities
4,985
39
3.15
%
3,386
38
4.50
%
4,995
40
3.22
%
Debt securities, taxable
259,768
1,183
1.83
%
282,325
1,323
1.88
%
265,164
1,232
1.87
%
Debt securities, non-taxable (2)
18,515
184
4.00
%
24,461
220
3.61
%
18,864
181
3.86
%
Total earnings assets
2,142,064
27,004
5.07
%
1,737,256
18,749
4.33
%
2,056,656
24,796
4.85
%
Non-earning assets
274,104
198,560
248,633
Allowance for credit losses
(11,386
)
(7,860
)
(10,523
)
Total assets
$
2,404,782
$
1,927,956
$
2,294,766
Interest-bearing demand and money market
deposits
$
648,772
3,575
2.22
%
$
521,422
1,597
1.23
%
$
643,199
3,917
2.45
%
Savings deposits
372,240
307
0.33
%
395,367
134
0.14
%
368,049
206
0.23
%
IRA and time certificates
493,297
5,808
4.74
%
215,403
1,604
2.99
%
370,130
4,067
4.42
%
Short-term borrowings
11,291
181
6.45
%
79,485
1,008
5.09
%
65,052
935
5.78
%
Long-term debt
162,555
1,877
4.64
%
18,514
183
3.96
%
150,177
1,738
4.65
%
Total interest-bearing liabilities
1,688,155
11,748
2.80
%
1,230,191
4,526
1.48
%
1,596,607
10,863
2.74
%
Demand deposits
451,678
472,154
443,168
Other liabilities
21,022
21,526
19,872
Equity
243,927
204,085
235,119
Total liabilities and equity
$
2,404,782
$
1,927,956
$
2,294,766
Net interest rate spread (3)
2.27
%
2.85
%
2.11
%
Net interest income and net interest
margin on a taxable-equivalent basis (4)
15,256
2.86
%
14,223
3.28
%
13,933
2.72
%
Ratio of interest-earning assets to
interest-bearing liabilities
126.89
%
141.22
%
128.81
%
(1)
Includes non-accrual loans and loans held
for sale
(2)
Income from tax-exempt securities is
included in interest income on a taxable-equivalent basis. Interest
income has been divided by a factor comprised of the complement of
the incremental tax rate of 21%.
(3)
The net interest spread is the difference
between the average rate on total interest-earning assets and
interest-bearing liabilities.
(4)
The net interest margin is the
taxable-equivalent net interest income divided by average
interest-earning assets.
Exhibit 99.2
LCNB CORP. AND
SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE
SHEETS
(Unaudited, dollars in
thousands)
June 30, 2024
December 31, 2023
ASSETS:
Cash and due from banks
$
25,750
36,535
Interest-bearing demand deposits
9,122
3,188
Total cash and cash equivalents
34,872
39,723
Investment securities:
Equity securities with a readily
determinable fair value, at fair value
1,330
1,336
Equity securities without a readily
determinable fair value, at cost
3,666
3,666
Debt securities, available-for-sale, at
fair value
261,357
276,601
Debt securities, held-to-maturity, at
cost, net of allowance for credit losses of $7 and $5 at June 30,
2024 and December 31, 2023, respectively
18,844
16,858
Federal Reserve Bank stock, at cost
6,334
5,086
Federal Home Loan Bank stock, at cost
20,710
15,176
Loans, net of allowance for credit losses
of $11,270 and 10,525 at June 30, 2024 and December 31, 2023,
respectively
1,725,477
1,712,946
Loans held for sale
44,002
—
Premises and equipment, net
40,766
36,302
Operating lease right-of-use assets
6,026
6,000
Goodwill
93,922
79,509
Core deposit and other intangibles,
net
12,135
9,494
Bank-owned life insurance
53,510
49,847
Interest receivable
9,473
8,405
Other assets, net
38,889
30,643
TOTAL ASSETS
$
2,371,313
2,291,592
LIABILITIES:
Deposits:
Noninterest-bearing
$
449,110
462,267
Interest-bearing
1,493,950
1,362,122
Total deposits
1,943,060
1,824,389
Short-term borrowings
—
97,395
Long-term debt
162,150
113,123
Operating lease liabilities
6,290
6,261
Accrued interest and other liabilities
14,599
15,121
TOTAL LIABILITIES
2,126,099
2,056,289
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; issued 17,363,138 and 16,384,952 shares at June
30, 2024 and December 31, 2023, respectively; outstanding
14,151,755 and 13,173,569 shares at June 30, 2024 and December 31,
2023, respectively
187,195
173,637
Retained earnings
136,883
140,017
Treasury shares at cost, 3,211,383 shares
at June 30, 2024 and December 31, 2023
(56,015
)
(56,015
)
Accumulated other comprehensive loss, net
of taxes
(22,849
)
(22,336
)
TOTAL SHAREHOLDERS' EQUITY
245,214
235,303
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY
$
2,371,313
$
2,291,592
Exhibit 99.2
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,
2024
2023
2024
2023
INTEREST INCOME:
Interest and fees on loans
$
24,836
16,763
47,518
32,906
Dividends on equity securities:
With a readily determinable fair value
9
8
18
25
Without a readily determinable fair
value
30
30
61
50
Interest on debt securities:
Taxable
1,183
1,323
2,415
2,666
Non-taxable
145
174
288
350
Other investments
762
405
1,423
624
TOTAL INTEREST INCOME
26,965
18,703
51,723
36,621
INTEREST EXPENSE:
Interest on deposits
9,690
3,335
17,880
5,791
Interest on short-term borrowings
181
1,008
1,116
2,312
Interest on long-term debt
1,877
183
3,615
399
TOTAL INTEREST EXPENSE
11,748
4,526
22,611
8,502
NET INTEREST INCOME
15,217
14,177
29,112
28,119
PROVISION FOR (RECOVERY OF) CREDIT
LOSSES
528
30
653
(27
)
NET INTEREST INCOME AFTER PROVISION FOR
(RECOVERY OF) CREDIT LOSSES
14,689
14,147
28,459
28,146
NON-INTEREST INCOME:
Fiduciary income
2,067
1,787
4,040
3,527
Service charges and fees on deposit
accounts
1,537
1,445
2,921
2,927
Net losses from sales of debt securities,
available-for-sale
—
—
(214
)
—
Bank-owned life insurance income
341
277
659
548
Net gains from sales of loans
50
3
572
9
Other operating income
85
134
31
216
TOTAL NON-INTEREST INCOME
4,080
3,646
8,009
7,227
NON-INTEREST EXPENSE:
Salaries and employee benefits
9,006
7,061
17,560
14,410
Equipment expenses
395
417
785
778
Occupancy expense, net
944
599
1,949
1,562
State financial institutions tax
476
396
904
793
Marketing
210
320
384
512
Amortization of intangibles
298
112
534
223
FDIC insurance premiums, net
394
224
898
439
Contracted services
844
666
1,628
1,307
Merger-related expenses
2,320
415
3,095
440
Other non-interest expense
2,938
1,868
5,560
4,139
TOTAL NON-INTEREST EXPENSE
17,825
12,078
33,297
24,603
INCOME BEFORE INCOME TAXES
944
5,715
3,171
10,770
PROVISION FOR INCOME TAXES
19
1,021
331
1,919
NET INCOME
$
925
4,694
2,840
8,851
Earnings per common share:
Basic
$
0.07
0.42
0.21
0.79
Diluted
$
0.07
0.42
0.21
0.79
Weighted average common shares
outstanding:
Basic
14,033,264
11,056,308
13,610,854
11,122,371
Diluted
14,033,264
11,056,308
13,610,854
11,122,371
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240723682222/en/
Company Contact: Eric J. Meilstrup President and Chief
Executive Officer LCNB National Bank (513) 932-1414
shareholderrelations@lcnb.com
Investor and Media Contact: Andrew M. Berger Managing
Director SM Berger & Company, Inc. (216) 464-6400
andrew@smberger.com
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