Q3 2024 net income improved 11.4%
year-over-year to $4.5 million, producing a 0.76% return on average
assets
Q3 2024 net income adjusted for merger-related
costs increased 9.1% year-over-year to $4.8 million and up 16.8%
from Q2 2024
LCNB Wealth Management assets up 24.4%
year-over-year to a record $1.37 billion and have increased 3.9%
from June 30, 2024
Tangible book value increased from $10.08 per
share at June 30, 2024 to $10.97 at September 30, 2024
LCNB Corp. ("LCNB") (NASDAQ: LCNB) today announced financial
results for the three months and nine months ended September 30,
2024.
Commenting on the financial results, LCNB President and Chief
Executive Officer Eric Meilstrup said, “Our 2024 third quarter
results are encouraging and reflect the growing benefits of the
April 2024 Eagle Financial Bancorp, Inc. (“EFBI” or “Eagle”)
acquisition and the November 2023 Cincinnati Bancorp, Inc.
(“Cincinnati Federal”) acquisition. I am pleased to report that
LCNB returned to year-over-year growth in both net income and
adjusted net income, which was one quarter ahead of our plan. This
is a testament to the hard work of the LCNB team, the growing
contribution of our new operating model, and the multi-year
opportunities we are pursuing to drive value for our
shareholders.”
Mr. Meilstrup continued, “Over the near-term, we continue to
focus on fully integrating the Eagle and Cincinnati Federal
acquisitions, improving efficiencies, and pursuing opportunistic
asset sales that we believe will further enhance our balance sheet
and earn a quick payback. As we look to 2025 and beyond, we believe
there are significant opportunities to leverage the continued
success and growth of LCNB Wealth Management by offering our wealth
management solutions to more customers across our growing
footprint, as well as to the Eagle and Cincinnati Federal customers
that we believe will benefit from our local, personalized, and
proven offerings.”
“Despite the complex banking environment, 2024 is proving to be
a transformative year for LCNB, marked by the integration of two
strategic acquisitions that have increased and strengthened our
market position. These moves are a testament to our resilience,
commitment to growth, and unwavering focus on long-term value
creation. We remain confident in our ability to adapt, innovate,
and lead, and we are excited about the opportunities ahead as we
continue to build a stronger, more diversified business for the
future,” concluded Mr. Meilstrup.
Income Statement
Net income for the 2024 third quarter was $4.5 million, compared
to net income of $4.1 million for the same period last year.
Earnings per basic and diluted share for the 2024 third quarter
were $0.31, compared to $0.37 for the same period last year. Net
income for the nine-month period ended September 30, 2024 was $7.4
million, compared to $12.9 million for the same period last year.
Earnings per basic and diluted share for the nine-month period
ended September 30, 2024 was $0.53, compared to $1.16 for the same
period last year.
Adjusted net income for the 2024 third quarter was $4.8 million,
or $0.34 per basic and diluted share, compared to $4.4 million, or
$0.40 per basic and diluted share, for the same period last year.
Adjusted net income for the nine months ended September 30, 2024
was $11.4 million, or $0.83 per basic and diluted share, compared
to $13.6 million, or $1.22 per basic and diluted share, in the
prior year period.
Net interest income for the three months ended September 30,
2024 was $15.0 million, compared to $13.6 million for the
comparable period in 2023. Net interest income for the nine-month
period ended September 30, 2024 was $44.1 million, as compared to
$41.7 million in the same period last year. An increase in interest
income from loans, due to a higher volume of average loans
outstanding and an increase in 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 third quarter, LCNB’s tax equivalent net interest
margin was 2.84%, compared to 3.04% for the same period last year.
Net interest margin for the nine-month period ended September 30,
2024 was 2.81%, as compared to 3.20% in the same period last
year.
Non-interest income for the three months ended September 30,
2024, was $6.4 million, compared to $3.6 million for the same
period last year. For the nine months ended September 30, 2024
non-interest income increased $3.6 million, or by 33.4%, to $14.4
million, compared to $10.8 million for the same period last year.
The increase in non-interest income for both the three- and
nine-month periods was primarily due to net gains from sales of
loans. In addition, non-interest income for both the three- and
nine-month periods benefitted from increased: fiduciary income,
service charges, and bank-owned life insurance income.
Non-interest expense for the three months ended September 30,
2024 was $15.4 million, compared to $12.2 million for the same
period last year. The $3.1 million increase was primarily due to
higher personnel and operating expenses. For the nine months ended
September 30, 2024, non-interest expense was $11.8 million higher
than the comparable period in 2023, partially due to an increase of
$5.1 million in salaries and employee benefit costs, a $782,000
increase in FDIC insurance premiums, and a $2.6 million increase in
merger-related expenses.
Capital Allocation
During the nine months ended September 30, 2024, LCNB did not
repurchase any of its outstanding shares. At September 30, 2024,
LCNB had 315,047 shares remaining under its share repurchase
program.
For the third quarter ended September 30, 2024, LCNB paid $0.22
per share in dividends, a 4.8% increase from $0.21 per share in the
third quarter of last year. Year-to-date, LCNB has paid $0.66 per
share in dividends, compared to $0.63 per share for the nine months
of last year.
Balance Sheet
Total assets at September 30, 2024 increased 18.4%, to $2.35
billion, from $1.98 billion at September 30, 2023. Net loans at
September 30, 2024 increased 17.7%, to $1.71 billion, compared to
$1.45 billion at September 30, 2023. The year-over-year increase
resulted primarily from the completion of the Cincinnati Federal
and Eagle acquisitions. Total loans at September 30, 2024, not
including loans acquired from the Cincinnati Federal and Eagle
transactions, were flat with the same period a year ago. During the
nine months ended September 30, 2024, the bank originated $306.5
million in loans of which $100.4 million were sold into the
secondary market.
Loans held for sale totaled $35.7 million at September 30, 2024.
$31.4 million of the loans held for sale balance represents
acquired loans. LCNB entered into a letter of intent to sell the
acquired balance of loans held for sale during the fourth quarter
of 2024 and, once complete, anticipates the proceeds will be used
for general corporate purposes, which may include supporting loan
growth, paying down higher cost funding sources, or adding to
liquidity balances.
Total deposits at September 30, 2024 increased 18.6% to $1.92
billion, compared to $1.62 billion at September 30, 2023. Not
including the Cincinnati Federal and Eagle acquisitions, total
deposits increased 8.5% organically, or by $138 million, from
September 30, 2023.
Assets Under Management
Total assets managed at September 30, 2024 were a record $4.25
billion, compared to $3.23 billion at September 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, cash management, 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 third quarter, LCNB recorded a provision for credit
losses of $660,000, compared to a recovery of credit losses of
$114,000 for the 2023 third quarter. For the nine months ended
September 30, 2024, LCNB recorded a total provision for credit
losses of $1.3 million, compared to a total recovery of credit
losses of $141,000 for the nine months ended September 30,
2023.
Net charge-offs for the 2024 third quarter were $84,000, or
0.02% 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 nine-month period, net charge-offs were $147,000, or
0.01% of average loans, compared to net charge-offs of $82,000, or
0.01% of average loans, for the 2023 nine-month period.
Total nonperforming loans, which include non-accrual loans and
loans past due 90 days or more and still accruing interest, were
$3.3 million, or 0.19% of total loans, at September 30, 2024,
compared to $261,000, or 0.02% of total loans, at September 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 0.14% at September 30, 2024, compared to
0.01% at September 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:
1.
the success, impact, and timing of the
implementation of LCNB’s business strategies;
2.
LCNB’s ability to integrate recent and
future acquisitions, including Cincinnati Federal and EFBI, may be
unsuccessful or may be more difficult, time-consuming, or costly
than expected;
3.
LCNB may incur increased loan charge-offs
in the future and the allowance for credit losses may be
inadequate;
4.
LCNB may face competitive loss of
customers;
5.
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;
6.
changes in general economic conditions and
increased competition could adversely affect LCNB’s operating
results;
7.
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;
8.
LCNB may experience difficulties growing
loan and deposit balances;
9.
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;
10.
global or domestic 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;
11.
difficulties with technology or data
security breaches, including cyberattacks or widespread outages,
could negatively affect LCNB's ability to conduct business and its
relationships with customers, vendors, and others;
12.
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
13.
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
Nine Months Ended
9/30/2024
6/30/2024
3/31/2024
12/31/2023
9/30/2023
9/30/2024
9/30/2023
Condensed Income
Statement
Interest income
$
26,398
26,965
24,758
23,310
19,668
78,121
56,289
Interest expense
11,428
11,748
10,863
8,651
6,097
34,039
14,599
Net interest income
14,970
15,217
13,895
14,659
13,571
44,082
41,690
Provision for (recovery of) credit
losses
660
528
125
2,218
(114
)
1,313
(141
)
Net interest income after provision for
(recovery of) credit losses
14,310
14,689
13,770
12,441
13,685
42,769
41,831
Non-interest income
6,407
4,080
3,929
4,606
3,578
14,416
10,805
Non-interest expense
15,387
17,825
15,472
17,576
12,244
48,684
36,847
Income (loss) before income taxes
5,330
944
2,227
(529
)
5,019
8,501
15,789
Provision for (benefit from) income
taxes
798
19
312
(236
)
949
1,129
2,868
Net income (loss)
$
4,532
925
1,915
(293
)
4,070
7,372
12,921
Supplemental
Income Statement Information
Accretion income on acquired loans
$
800
1,248
776
410
—
2,824
75
Amortization expenses on acquired
interest-bearing liabilities
$
378
638
459
309
—
1,475
—
Tax-equivalent net interest income
$
15,013
15,256
13,933
14,703
13,617
44,202
41,829
Pre-provision, pre-tax net income
$
5,990
1,472
2,352
1,689
4,905
9,814
15,648
Per Share
Data
Dividends per share
$
0.22
0.22
0.22
0.22
0.21
0.66
0.63
Basic earnings (loss) per common share
$
0.31
0.07
0.15
(0.02
)
0.37
0.53
1.16
Diluted earnings (loss) per common
share
$
0.31
0.07
0.15
(0.02
)
0.37
0.53
1.16
Book value per share
$
17.95
17.33
17.67
17.86
18.10
17.95
18.10
Tangible book value per share
$
10.97
10.08
11.26
11.42
12.72
10.97
12.72
Weighted average common shares
outstanding:
Basic
14,103,358
14,033,264
13,112,302
12,378,289
11,038,720
13,761,582
11,094,185
Diluted
14,103,358
14,033,264
13,112,302
12,378,289
11,038,720
13,761,582
11,094,185
Shares outstanding at period end
14,110,210
14,151,755
13,224,276
13,173,569
11,123,382
14,110,210
11,123,382
Selected
Financial Ratios
Return on average assets
0.76
%
0.15
%
0.34
%
(0.05
)%
0.82
%
0.42
%
0.89
%
Return on average equity
7.23
%
1.53
%
3.28
%
(0.53
)%
7.92
%
4.06
%
8.49
%
Return on average tangible common
equity
9.49
%
2.02
%
4.39
%
(0.72
)%
11.21
%
5.37
%
12.04
%
Dividend payout ratio
70.97
%
314.29
%
146.67
%
NM
56.76
%
124.53
%
54.31
%
Net interest margin (tax equivalent)
2.84
%
2.86
%
2.72
%
2.99
%
3.04
%
2.81
%
3.20
%
Efficiency ratio (tax equivalent)
71.83
%
92.19
%
86.62
%
91.02
%
71.21
%
83.05
%
70.01
%
Selected Balance
Sheet Items
Cash and cash equivalents
$
39,374
$
34,872
$
32,951
$
39,723
43,422
Debt and equity securities
313,545
312,241
306,775
318,723
309,094
Loans:
Commercial and industrial
$
119,079
$
125,703
$
122,229
$
120,411
125,751
Commercial, secured by real estate
1,105,405
1,117,798
1,099,601
1,107,556
981,787
Residential real estate
459,740
458,949
398,250
459,073
313,286
Consumer
22,088
22,912
24,137
25,578
27,018
Agricultural
13,113
11,685
12,647
10,952
11,278
Other, including deposit overdrafts
496
233
73
82
80
Deferred net origination fees
(861
)
(533
)
(583
)
(181
)
(796
)
Loans, gross
1,719,060
1,736,747
1,656,354
1,723,471
1,458,404
Less allowance for credit losses
11,867
11,270
10,557
10,525
7,932
Loans, net
$
1,707,193
$
1,725,477
$
1,645,797
$
1,712,946
1,450,472
Loans held for sale
$
35,687
44,002
75,581
—
—
NM - Not Meaningful
Three Months Ended
Nine Months Ended
9/30/2024
6/30/2024
3/31/2024
12/31/2023
9/30/2023
9/30/2024
9/30/2023
Selected Balance Sheet Items,
continued
Allowance for Credit Losses on
Loans:
Allowance for credit losses, beginning of
period
$
11,270
10,557
10,525
7,932
7,956
Fair value adjustment for purchased credit
deteriorated loans
—
189
—
493
—
Provision for credit losses on loans
681
542
77
2,203
9
Losses charged off
(122
)
(87
)
(78
)
(126
)
(57
)
Recoveries
38
69
33
23
24
Allowance for credit losses, end of
period
$
11,867
11,270
10,557
10,525
7,932
Total earning assets
$
2,044,318
2,058,110
1,971,130
2,045,382
$
1,787,796
Total assets
2,346,908
2,371,313
2,283,151
2,291,592
1,981,668
Total deposits
1,917,005
1,943,060
1,858,493
1,824,389
1,616,890
Short-term borrowings
—
—
10,000
97,395
30,000
Long-term debt
155,662
162,150
162,638
113,123
112,641
Total shareholders’ equity
253,246
245,214
233,663
235,303
201,349
Equity to assets ratio
10.79
%
10.34
%
10.23
%
10.27
%
10.16
%
Loans to deposits ratio
89.67
%
89.38
%
89.12
%
94.47
%
90.20
%
Tangible common equity (TCE)
$
154,728
142,679
145,850
146,999
$
141,508
Tangible common assets (TCA)
2,248,390
2,268,778
2,195,338
2,203,288
1,921,827
TCE/TCA
6.88
%
6.29
%
6.64
%
6.67
%
7.36
%
Selected Average
Balance Sheet Items
Cash and cash equivalents
$
39,697
39,396
51,366
49,436
36,177
43,486
34,234
Debt and equity securities
314,255
309,668
310,771
310,274
313,669
311,551
320,706
Loans, including loans held for sale
$
1,770,330
1,818,253
1,722,568
1,622,911
1,451,153
1,770,383
1,415,719
Less allowance for credit losses on
loans
11,281
11,386
10,523
8,826
7,958
11,064
7,782
Net loans
$
1,759,049
1,806,867
1,712,045
1,614,085
1,443,195
1,759,319
1,407,937
Total earning assets, including loans held
for sale
$
2,099,954
$
2,142,064
$
2,056,656
$
1,952,121
1,775,713
2,099,536
1,747,476
Total assets
2,365,676
2,404,782
2,294,766
2,182,477
1,971,269
2,355,113
1,940,591
Total deposits
1,936,601
1,965,987
1,824,546
1,759,677
1,610,508
1,909,146
1,599,668
Short-term borrowings
11
11,291
65,052
64,899
63,018
25,358
78,916
Long-term debt
158,419
162,555
150,177
115,907
72,550
157,056
36,878
Total shareholders’ equity
249,370
243,927
235,119
220,678
203,967
242,829
203,496
Equity to assets ratio
10.54
%
10.14
%
10.25
%
10.11
%
10.35
%
10.31
%
10.49
%
Loans to deposits ratio
91.41
%
92.49
%
94.41
%
92.23
%
90.11
%
92.73
%
88.50
%
Asset
Quality
Net charge-offs
$
84
18
45
102
33
147
82
Other real estate owned
—
—
—
—
—
—
—
Non-accrual loans
$
3,001
2,845
2,719
80
85
3,001
85
Loans past due 90 days or more and still
accruing
283
159
524
72
176
283
176
Total nonperforming loans
$
3,284
3,004
3,243
152
261
3,284
261
Net charge-offs to average loans
0.02
%
—
%
0.01
%
0.02
%
0.01
%
0.01
%
0.01
%
Allowance for credit losses on loans to
total loans
0.69
%
0.65
%
0.64
%
0.61
%
0.54
%
Nonperforming loans to total loans
0.19
%
0.17
%
0.20
%
0.01
%
0.02
%
Nonperforming assets to total assets
0.14
%
0.13
%
0.14
%
0.01
%
0.01
%
Three Months Ended
Nine Months Ended
9/30/2024
6/30/2024
3/31/2024
12/31/2023
9/30/2023
9/30/2024
9/30/2023
Assets Under Management
LCNB Corp. total assets
$
2,346,908
2,371,313
2,283,151
2,291,592
1,981,668
Trust and investments (fair value)
933,341
897,746
890,800
806,770
731,342
Mortgage loans serviced
366,175
422,951
386,490
391,800
146,483
Cash management
165,218
93,842
13,314
2,375
2,445
Brokerage accounts (fair value)
435,611
419,646
411,211
392,390
368,854
Total assets managed
$
4,247,253
4,205,498
3,984,966
3,884,927
3,230,792
Reconciliation of
Net Income Less Tax-Effected Merger-Related Costs
Net income (loss)
$
4,532
925
1,915
(293
)
4,070
7,372
12,921
Merger expenses
281
2,320
775
3,914
302
3,376
742
Provision for credit losses on non-PCD
loans
—
763
—
1,722
—
763
—
Loss on sale of below-market acquired
loans
—
843
—
—
—
843
—
Tax effect
(48
)
(773
)
(90
)
(1,102
)
(3
)
(911
)
(83
)
Adjusted net income
$
4,765
4,078
2,600
4,241
4,369
11,443
13,580
Adjusted basic and diluted earnings per
share
$
0.34
$
0.29
$
0.20
$
0.34
0.40
0.83
1.22
Adjusted return on average assets
0.80
%
0.68
%
0.46
%
0.77
%
0.88
%
0.65
%
0.94
%
Adjusted return on average equity
7.60
%
6.72
%
4.45
%
7.62
%
8.50
%
6.29
%
8.92
%
Three Months Ended September
30,
Three Months Ended June
30,
2024
2023
2024
Average
Interest
Average
Average
Interest
Average
Average
Interest
Average
Outstanding
Earned/
Yield/
Outstanding
Earned/
Yield/
Outstanding
Earned/
Yield/
Balance
Paid
Rate
Balance
Paid
Rate
Balance
Paid
Rate
Loans (1)
$
1,770,330
24,342
5.47
%
$
1,451,153
17,875
4.89
%
$
1,818,253
24,836
5.49
%
Interest-bearing demand deposits
15,369
209
5.41
%
10,891
152
5.54
%
14,143
215
6.11
%
Federal Reserve Bank stock
6,393
(1
)
(0.06
)%
4,652
—
—
%
6,248
180
11.59
%
Federal Home Loan Bank stock
20,710
464
8.91
%
7,007
134
7.59
%
20,152
367
7.32
%
Investment securities:
Equity securities
5,026
40
3.17
%
3,382
38
4.46
%
4,985
39
3.15
%
Debt securities, taxable
262,220
1,181
1.79
%
274,494
1,296
1.87
%
259,768
1,183
1.83
%
Debt securities, non-taxable (2)
19,906
206
4.12
%
24,134
219
3.60
%
18,515
184
4.00
%
Total earnings assets
2,099,954
26,441
5.01
%
1,775,713
19,714
4.40
%
2,142,064
27,004
5.07
%
Non-earning assets
277,003
203,514
274,104
Allowance for credit losses
(11,281
)
(7,958
)
(11,386
)
Total assets
$
2,365,676
$
1,971,269
$
2,404,782
Interest-bearing demand and money market
deposits
$
585,823
3,006
2.04
%
$
541,487
2,298
1.68
%
$
648,772
3,575
2.22
%
Savings deposits
367,045
274
0.30
%
379,515
129
0.13
%
372,240
307
0.33
%
IRA and time certificates
538,070
6,298
4.66
%
230,030
1,999
3.45
%
493,297
5,808
4.74
%
Short-term borrowings
11
—
0.00
%
63,018
830
5.23
%
11,291
181
6.45
%
Long-term debt
158,419
1,850
4.65
%
72,550
841
4.60
%
162,555
1,877
4.64
%
Total interest-bearing liabilities
1,649,368
11,428
2.76
%
1,286,600
6,097
1.88
%
1,688,155
11,748
2.80
%
Demand deposits
445,663
459,476
451,678
Other liabilities
21,275
21,226
21,022
Equity
249,370
203,967
243,927
Total liabilities and equity
$
2,365,676
$
1,971,269
$
2,404,782
Net interest rate spread (3)
2.25
%
2.52
%
2.27
%
Net interest income and net interest
margin on a taxable-equivalent basis (4)
15,013
2.84
%
13,617
3.04
%
15,256
2.86
%
Ratio of interest-earning assets to
interest-bearing liabilities
127.32
%
138.02
%
126.89
%
(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.
For the Nine Months Ended
September 30,
2024
2023
Average
Interest
Average
Average
Interest
Average
Outstanding
Earned/
Yield/
Outstanding
Earned/
Yield/
Balance
Paid
Rate
Balance
Paid
Rate
Loans (1)
$
1,770,383
71,860
5.42
%
$
1,415,719
50,781
4.80
%
Interest-bearing demand deposits
17,602
747
5.67
%
11,051
453
5.48
%
Federal Reserve Bank stock
6,051
176
3.89
%
4,652
140
4.02
%
Federal Home Loan Bank stock
19,040
1,172
8.22
%
6,840
317
6.20
%
Investment securities:
Equity securities
5,002
119
3.18
%
3,698
113
4.09
%
Debt securities, taxable
262,360
3,596
1.83
%
280,998
3,962
1.89
%
Debt securities, non-taxable (2)
19,098
571
3.99
%
24,518
662
3.61
%
Total earnings assets
2,099,536
78,241
4.98
%
1,747,476
56,428
4.32
%
Non-earning assets
266,641
200,897
Allowance for credit losses
(11,064
)
(7,782
)
Total assets
$
2,355,113
$
1,940,591
Interest-bearing demand and money market
deposits
$
625,785
10,498
2.24
%
$
522,896
5,140
1.31
%
Savings deposits
369,104
787
0.28
%
396,785
402
0.14
%
IRA and time certificates
467,425
16,173
4.62
%
210,407
4,675
2.97
%
Short-term borrowings
25,358
1,116.00
5.88
%
78,916
3,142
5.32
%
Long-term debt
157,056
5,465
4.65
%
36,878
1,240
4.50
%
Total interest-bearing liabilities
1,644,728
34,039
2.76
%
1,245,882
14,599
1.57
%
Demand deposits
446,832
469,580
Other liabilities
20,724
21,633
Equity
242,829
203,496
Total liabilities and equity
$
2,355,113
$
1,940,591
Net interest rate spread (3)
2.22
%
2.75
%
Net interest income and net interest
margin on a taxable-equivalent basis (4)
44,202
2.81
%
41,829
3.20
%
Ratio of interest-earning assets to
interest-bearing liabilities
127.65
%
140.26
%
(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)
September 30, 2024
December 31, 2023
Unaudited
Audited
ASSETS:
Cash and due from banks
$
27,661
$
36,535
Interest-bearing demand deposits
11,713
3,188
Total cash and cash equivalents
39,374
39,723
Investment securities:
Equity securities with a readily
determinable fair value, at fair value
$
1,388
$
1,336
Equity securities without a readily
determinable fair value, at cost
3,666
3,666
Debt securities, available-for-sale, at
fair value
262,622
276,601
Debt securities, held-to-maturity, at
cost, net of allowance for credit losses of $7 and $5 at September
30, 2024 and December 31, 2023, respectively
18,730
16,858
Federal Reserve Bank stock, at cost
6,429
5,086
Federal Home Loan Bank stock, at cost
20,710
15,176
Loans, net of allowance for credit losses
of $11,867 and $10,525 at September 30, 2024 and December 31, 2023,
respectively
1,707,193
1,712,946
Loans held for sale
35,687
—
Premises and equipment, net
41,233
36,302
Operating lease right-of-use assets
5,853
6,000
Goodwill
90,209
79,509
Core deposit and other intangibles,
net
11,605
9,494
Bank-owned life insurance
53,650
49,847
Interest receivable
9,450
8,405
Other assets, net
39,109
30,643
TOTAL ASSETS
2,346,908
2,291,592
LIABILITIES:
Deposits:
Noninterest-bearing
$
446,626
$
462,267
Interest-bearing
1,470,379
1,362,122
Total deposits
1,917,005
1,824,389
Short-term borrowings
—
97,395
Long-term debt
155,662
113,123
Operating lease liabilities
6,152
6,261
Accrued interest and other liabilities
14,843
15,121
TOTAL LIABILITIES
2,093,662
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 17,321,593 and 16,384,952 shares at
September 30, 2024 and December 31, 2023, respectively; outstanding
14,110,210 and 13,173,569 shares at September 30, 2024 and December
31, 2023, respectively
186,716
173,637
Retained earnings
138,325
140,017
Treasury shares at cost, 3,211,383 and
3,211,383 shares at September 30, 2024 and December 31, 2023,
respectively
(56,015
)
(56,015
)
Accumulated other comprehensive loss, net
of taxes
(15,780
)
(22,336
)
TOTAL SHAREHOLDERS' EQUITY
253,246
235,303
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY
$
2,346,908
$
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
Nine Months Ended
September 30,
September 30,
2024
2023
2024
2023
INTEREST INCOME:
Interest and fees on loans
$
24,342
17,875
$
71,860
50,781
Dividends on equity securities:
With a readily determinable fair value
10
9
28
34
Without a readily determinable fair
value
30
29
91
79
Interest on debt securities:
Taxable
1,181
1,296
3,596
3,962
Non-taxable
163
173
451
523
Other investments
672
286
2,095
910
TOTAL INTEREST INCOME
26,398
19,668
78,121
56,289
INTEREST EXPENSE:
Interest on deposits
9,578
4,426
27,458
10,217
Interest on short-term borrowings
—
830
1,116
3,142
Interest on long-term debt
1,850
841
5,465
1,240
TOTAL INTEREST EXPENSE
11,428
6,097
34,039
14,599
NET INTEREST INCOME
14,970
13,571
44,082
41,690
PROVISION FOR (RECOVERY OF) CREDIT
LOSSES
660
(114
)
1,313
(141
)
NET INTEREST INCOME AFTER PROVISION FOR
(RECOVERY OF) CREDIT LOSSES
14,310
13,685
42,769
41,831
NON-INTEREST INCOME:
Fiduciary income
2,097
1,736
6,137
5,263
Service charges and fees on deposit
accounts
1,899
1,397
4,820
4,324
Net losses from sales of debt securities,
available-for-sale
—
—
(214
)
—
Bank-owned life insurance income
654
282
1,313
830
Net gains from sales of loans
1,625
29
2,197
38
Other operating income
132
134
163
350
TOTAL NON-INTEREST INCOME
6,407
3,578
14,416
10,805
NON-INTEREST EXPENSE:
Salaries and employee benefits
9,025
7,044
26,585
21,454
Equipment expenses
420
397
1,205
1,175
Occupancy expense, net
966
805
2,915
2,367
State financial institutions tax
505
396
1,409
1,189
Marketing
320
223
704
735
Amortization of intangibles
304
113
838
336
FDIC insurance premiums, net
547
224
1,445
663
Contracted services
807
671
2,435
1,978
Merger-related expenses
281
302
3,376
742
Other non-interest expense
2,212
2,069
7,772
6,208
TOTAL NON-INTEREST EXPENSE
15,387
12,244
48,684
36,847
INCOME BEFORE INCOME TAXES
5,330
5,019
8,501
15,789
PROVISION FOR INCOME TAXES
798
949
1,129
2,868
NET INCOME
$
4,532
4,070
$
7,372
12,921
Earnings per common share:
Basic
0.31
0.37
0.53
1.16
Diluted
0.31
0.37
0.53
1.16
Weighted average common shares
outstanding:
Basic
14,103,358
11,038,720
13,761,582
11,094,185
Diluted
14,103,358
11,038,720
13,761,582
11,094,185
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241021950586/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
LCNB (NASDAQ:LCNB)
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