Non-interest income increased 9.7%
year-over-year to $3.9 million
Strengthening balance sheet as cash and cash
equivalents grew by 3.4% and debt and equity securities decreased
by 6.5%
Asset quality remains excellent with total
nonperforming loans to total loans of 0.20% at March 31, 2024
LCNB successfully completed the Eagle Financial
Bancorp, Inc. acquisition on April 12, 2024
Management expects earnings growth will
reaccelerate in the fourth quarter of 2024
LCNB Corp. ("LCNB") (NASDAQ: LCNB) today announced financial
results for the three months ended March 31, 2024.
Commenting on the financial results, LCNB President and Chief
Executive Officer, Eric Meilstrup said, “Our first quarter
performance reflects our near-term focus on integrating the
November 2023 Cincinnati Federal acquisition and completing the
merger with Eagle Financial Bancorp, Inc. (“EFBI” or “Eagle”),
which I am pleased to report closed on April 12, 2024. I am excited
by the opportunities underway to leverage the benefits of these two
acquisitions and serve compelling communities within the greater
Cincinnati region. While we expect one-time merger-related expenses
will continue throughout the first half of 2024, we believe we are
well positioned for earnings growth to reaccelerate in the fourth
quarter of 2024.”
“We are simultaneously pursuing organic growth opportunities
while providing our communities with best-in-class and local
financial services. Total assets managed by LCNB Wealth Management
increased 19.4% year-over-year and are up 8.6% over the past three
months. The continued growth of LCNB Wealth Management demonstrates
the value our financial, trust, and investment products provide to
our local communities,” Mr. Meilstrup continued.
“In addition to the growth strategies underway, we are also
focused on maintaining excellent asset quality and pursuing
initiatives that strengthen our balance sheet. As we successfully
execute these actions over the coming quarters, we believe we will
enhance our earnings power, strengthen our competitive advantage,
and position LCNB National Bank for long-term success. I am proud
of the direction LCNB is headed, and I look forward to updating
shareholders on the progress we are making,” concluded Mr.
Meilstrup.
Income Statement
Net income for the 2024 first quarter was $1.9 million, compared
to net income of $4.2 million for the same period last year.
Earnings per basic and diluted share for the 2024 first quarter
were $0.15, compared to $0.37 for the same period last year.
Adjusted net income accounts for the impact of one-time
merger-related expenses, net of tax, associated with the Cincinnati
Federal and EFBI acquisitions. Adjusted net income for the 2024
first quarter was $2.6 million, or $0.20 per diluted share,
compared to $4.2 million, or $0.37 per diluted share, for the same
period last year.
Net interest income for the three months ended March 31, 2024,
was $13.9 million, compared to $13.9 million for the comparable
period in 2023. 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 offset by increased interest expense from
higher IRA and time certificate balances, increased long-term debt,
and interest rate-related variances.
For the 2024 first quarter, LCNB’s tax equivalent net interest
margin was 2.73%, compared to 3.28% for the same period last year.
The decrease in the net interest margin reflects the current
interest rate environment. As depositors moved funds from
non-interest bearing deposits into higher rate products, the
average rate paid on interest-bearing liabilities increased 142
basis points. During the same period, the average rate earned from
interest-earning assets increased a more gradual 66 basis
points.
Non-interest income for the three months ended March 31, 2024
was $3.9 million, compared to $3.6 million for the same period last
year. The increase in non-interest income for the three-month
period was primarily due to higher fiduciary income and higher
gains on sales of loans due to a higher volume of loans sold.
Management considers various factors when determining the volume of
loans to sell, including liquidity needs and sources and pricing
available in the secondary market. LCNB's inventory of new loans is
also a factor. The first quarter 2024 was the first quarter that
LCNB operated in the expanded market it obtained through the merger
with Cincinnati Federal. Partially offsetting the increases in
non-interest income during the quarter was a $214,000 pretax loss
on the sale of approximately $9.8 million of debt securities.
Non-interest expense for the three months ended March 31, 2024
was $2.9 million higher than the comparable period in 2023,
primarily due to higher personnel and operating expenses primarily
associated with the integration of Cincinnati Federal and $775,000
of one-time expenses associated with the Cincinnati Federal and
EFBI acquisitions.
Capital Allocation
During the three months ended March 31, 2024, LCNB did not
repurchase any of its outstanding shares. At March 31, 2024, LCNB
had 315,047 shares remaining under its February 2023 share
repurchase program.
For the first quarter ended March 31, 2024, LCNB paid $0.22 per
share in dividends, a 4.8% increase from $0.21 per share in the
first quarter of last year.
Balance Sheet
Total assets at March 31, 2024 increased 18.6% to $2.28 billion
from $1.92 billion at March 31, 2023. Net loans at March 31, 2024
increased 18.7% to $1.65 billion, compared to $1.39 billion at
March 31, 2023. The year-over-year improvement resulted primarily
from the contribution of continued organic loan growth and the
completion of the Cincinnati Federal acquisition. Not including the
Cincinnati Federal acquisition, total net loans increased 2.0%
organically, or by $27.8 million from the same period a year
ago.
Loans held for sale totaled $75.6 million at March 31, 2024 and
are primarily composed of loans scheduled to be sold to an investor
during the second quarter of 2024. LCNB anticipates that proceeds
from the sale will be used for general corporate purposes, which
may include supporting loan growth, paying down short-term
borrowings and long-term debt, and adding to liquidity
balances.
Total deposits at March 31, 2024 increased 15.9% to $1.86
billion, compared to $1.60 billion at March 31, 2023. Not including
the Cincinnati Federal acquisition, total deposits increased 4.5%
organically, or by $71.4 million since March 31, 2023.
Assets Under Management
Total assets managed at March 31, 2024 were a record $3.98
billion, compared to $3.16 billion at March 31, 2023. The
year-over-year increase in total assets managed was primarily due
to the Cincinnati Federal acquisition and organic growth in LCNB
Corp. total assets, trust and investments, 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 first quarter, LCNB recorded a provision for credit
losses of $125,000, compared to a recovery of credit losses of
$57,000 for the 2023 first quarter.
Net charge-offs for the 2024 first quarter were $45,000, or
0.01% of average loans, compared to net charge-offs of $16,000, or
0.00% of average loans, annualized, for the same period last
year.
Total nonperforming loans, which include non-accrual loans and
loans past due 90 days or more and still accruing interest, were
$3.2 million, or 0.19% of total loans at March 31, 2024, compared
to $701,000 or 0.05% of total loans at March 31, 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. The nonperforming assets to total assets ratio was
0.14% at March 31, 2024, compared to 0.04% at March 31, 2023.
Merger Agreement with Eagle Financial Bancorp, Inc.
On April 12, 2024, LCNB completed the acquisition of EFBI and
the merger of EAGLE.bank with and into LCNB National Bank.
EAGLE.bank operated three full-service banking offices in
Cincinnati, Ohio.
With the addition of EFBI, LCNB now operates 36 full-service
banking offices in Ohio and one branch office in Northern Kentucky.
Assuming the transaction had been completed as of March 31, 2024,
LCNB would have had total deposits of $1.99 billion and total loans
of $1.79 billion at March 31, 2024.
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
03-31-2024
12-31-2023
09-30-2023
06-30-2023
03-31-2023
Condensed Income
Statement
Interest income
$
24,758
$
23,310
19,668
18,703
17,918
Interest expense
10,863
8,651
6,097
4,526
3,976
Net interest income
13,895
14,659
13,571
14,177
13,942
Provision for (recovery of) credit
losses
125
2,218
(114
)
30
(57
)
Net interest income after provision for
(recovery of) credit losses
13,770
12,441
13,685
14,147
13,999
Non-interest income
3,929
4,606
3,578
3,646
3,581
Non-interest expense
15,472
17,576
12,244
12,078
12,525
Income (loss) before income taxes
2,227
(529
)
5,019
5,715
5,055
Provision for (benefit from) income
taxes
312
(236
)
949
1,021
898
Net income (loss)
$
1,915
$
(293
)
$
4,070
$
4,694
4,157
Supplemental
Income Statement Information
Amort/Accret income on acquired loans
$
776
$
410
—
—
75
Tax-equivalent net interest income
$
13,933
$
14,703
13,617
14,223
13,989
Per Share
Data
Dividends per share
$
0.22
$
0.22
0.21
0.21
0.21
Basic earnings (loss) per common share
$
0.15
$
(0.02
)
0.37
0.42
0.37
Diluted earnings (loss) per common
share
$
0.15
$
(0.02
)
0.37
0.42
0.37
Book value per share
$
17.67
$
17.86
18.10
18.20
18.22
Tangible book value per share
$
11.03
$
11.16
12.72
12.81
12.86
Weighted average common shares
outstanding:
Basic
13,112,302
12,378,289
11,038,720
11,056,308
11,189,170
Diluted
13,112,302
12,378,289
11,038,720
11,056,308
11,189,170
Shares outstanding at period end
13,224,276
13,173,569
11,123,382
11,116,080
11,202,063
Selected
Financial Ratios
Return on average assets
0.34
%
(0.05
)%
0.82
%
0.98
%
0.88
%
Return on average equity
3.28
%
(0.53
)%
7.92
%
9.22
%
8.33
%
Return on average tangible common
equity
4.39
%
(0.72
)%
11.21
%
13.07
%
11.85
%
Dividend payout ratio
146.67
%
NM
56.76
%
50.00
%
56.76
%
Net interest margin (tax equivalent)
2.72
%
2.99
%
3.04
%
3.28
%
3.28
%
Efficiency ratio (tax equivalent)
86.62
%
91.02
%
71.21
%
67.59
%
71.29
%
Selected Balance
Sheet Items
Cash and cash equivalents
$
32,951
$
39,723
43,422
26,020
31,876
Debt and equity securities
306,775
318,723
309,094
314,763
328,194
Loans:
Commercial and industrial
$
122,229
$
120,411
125,751
127,553
124,240
Commercial, secured by real estate
1,099,601
1,107,556
981,787
961,173
932,208
Residential real estate
398,250
459,073
313,286
312,338
303,051
Consumer
24,137
25,578
27,018
29,007
28,611
Agricultural
12,647
10,952
11,278
9,955
7,523
Other, including deposit overdrafts
73
82
80
69
62
Deferred net origination fees
(583
)
(181
)
(796
)
(844
)
(865
)
Loans, gross
1,656,354
1,723,471
1,458,404
1,439,251
1,394,830
Less allowance for credit losses
10,557
10,525
7,932
7,956
7,858
Loans, net
$
1,645,797
1,712,946
1,450,472
1,431,295
1,386,972
Loans held for sale
75,581
—
—
—
—
NM - Not Meaningful
Three Months Ended
03-31-2024
12-31-2023
09-30-2023
06-30-2023
03-31-2023
Selected Balance
Sheet Items, continued
Allowance for Credit Losses on
Loans:
Allowance for credit losses, beginning of
period
$
10,525
7,932
7,956
7,858
5,646
Cumulative change in accounting principle
- ASC 326
—
—
—
—
2,196
Fair value adjustment for purchased credit
deteriorated loans
—
493
—
—
—
Provision for credit losses
77
2,203
9
131
32
Losses charged off
(78
)
(126
)
(57
)
(49
)
(36
)
Recoveries
33
23
24
16
20
Allowance for credit losses, end of
period
$
10,557
10,525
7,932
7,956
7,858
Total earning assets
$
1,971,130
$
2,045,382
1,787,796
1,756,157
$
1,736,829
Total assets
2,283,151
2,291,592
1,981,668
1,950,763
1,924,531
Total deposits
1,858,493
1,824,389
1,616,890
1,596,709
1,603,881
Short-term borrowings
10,000
97,395
30,000
112,289
76,500
Long-term debt
162,638
113,123
112,641
18,122
18,598
Total shareholders’ equity
233,663
235,303
201,349
202,316
204,072
Equity to assets ratio
10.23
%
10.27
%
10.16
%
10.37
%
10.60
%
Loans to deposits ratio
89.12
%
94.47
%
90.20
%
90.14
%
86.97
%
Tangible common equity (TCE)
$
145,850
$
146,999
141,508
142,362
144,006
Tangible common assets (TCA)
2,195,338
2,203,288
1,921,827
1,890,809
1,864,457
TCE/TCA
6.64
%
6.67
%
7.36
%
7.53
%
7.72
%
Selected Average
Balance Sheet Items
Cash and cash equivalents
$
51,366
$
49,436
36,177
30,742
35,712
Debt and equity securities
310,771
310,274
313,669
321,537
327,123
Loans, including loans held for sale
$
1,722,568
$
1,622,911
1,451,153
1,405,939
1,389,385
Less allowance for credit losses on
loans
10,523
8,826
7,958
7,860
7,522
Net loans
$
1,712,045
1,614,085
1,443,195
1,398,079
1,381,863
Total earning assets, including loans held
for sale
$
2,056,656
$
1,952,121
1,775,713
1,737,256
1,729,008
Total assets
2,294,766
2,182,477
1,971,269
1,927,956
1,921,742
Total deposits
1,824,546
1,759,677
1,610,508
1,604,346
1,583,857
Short-term borrowings
65,052
64,899
63,018
79,485
94,591
Long-term debt
150,177
115,907
72,550
18,514
18,983
Total shareholders’ equity
235,119
220,678
203,967
204,085
202,419
Equity to assets ratio
10.25
%
10.11
%
10.35
%
10.59
%
10.53
%
Loans to deposits ratio
94.41
%
92.23
%
90.11
%
87.63
%
87.72
%
Asset
Quality
Net charge-offs
$
45
$
102
33
33
16
Other real estate owned
—
—
—
—
—
Non-accrual loans
$
2,719
$
80
85
451
701
Loans past due 90 days or more and still
accruing
524
72
176
256
—
Total nonperforming loans
$
3,243
152
261
707
701
Net charge-offs to average loans
0.01
%
0.02
%
0.01
%
0.01
%
0.00
%
Allowance for credit losses on loans to
total loans
0.64
%
0.61
%
0.54
%
0.55
%
0.56
%
Nonperforming loans to total loans
0.20
%
0.01
%
0.02
%
0.05
%
0.05
%
Nonperforming assets to total assets
0.14
%
0.01
%
0.01
%
0.04
%
0.04
%
Three Months Ended
03-31-2024
12-31-2023
09-30-2023
06-30-2023
03-31-2023
Assets Under
Management
LCNB Corp. total assets
$
2,283,151
2,291,592
1,981,668
1,950,763
1,924,531
Trust and investments (fair value)
890,800
806,770
731,342
744,149
716,578
Mortgage loans serviced
386,490
391,800
146,483
143,093
142,167
Cash management
13,314
2,375
2,445
2,668
1,831
Brokerage accounts (fair value)
411,211
392,390
368,854
384,889
374,066
Total assets managed
$
3,984,966
3,884,927
3,230,792
3,225,562
3,159,173
Reconciliation of
Net Income Less Tax-Effected Merger-Related Costs
Net income (loss)
$
1,915
(293
)
4,070
4,694
4,157
Merger expenses
775
3,914
302
415
25
Provision for credit losses on non-PCD
loans
—
1,722
—
—
—
Tax effect
(90
)
(1,102
)
(3
)
(63
)
(4
)
Adjusted net income
$
2,600
4,241
4,369
5,046
4,178
Adjusted basic and diluted earnings per
share
$
0.20
$
0.34
0.40
0.45
0.37
Adjusted return on average assets
0.46
%
0.77
%
0.88
%
1.05
%
0.88
%
Adjusted return on average equity
4.45
%
7.62
%
8.50
%
9.92
%
8.37
%
Three Months Ended March
31,
Three Months Ended December
31,
2024
2023
2023
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)
$
1,722,568
22,682
5.30
%
$
1,389,385
16,143
4.71
%
$
1,622,911
21,113
5.16
%
Interest-bearing demand deposits
23,317
324
5.59
%
12,500
157
5.09
%
18,936
280
5.87
%
Federal Reserve Bank stock
5,509
(4
)
(0.29
)%
4,652
—
—
%
4,930
144
11.59
%
Federal Home Loan Bank stock
16,239
341
8.45
%
6,796
62
3.70
%
12,607
273
8.59
%
Investment securities:
Equity securities
4,995
40
3.22
%
4,337
37
3.46
%
4,415
62
5.57
%
Debt securities, taxable
265,164
1,232
1.87
%
286,369
1,343
1.90
%
265,736
1,273
1.90
%
Debt securities, non-taxable (2)
18,864
181
3.86
%
24,969
223
3.62
%
22,586
209
3.67
%
Total earnings assets
2,056,656
24,796
4.85
%
1,729,008
17,965
4.21
%
1,952,121
23,354
4.75
%
Non-earning assets
248,633
200,256
239,182
Allowance for credit losses
(10,523
)
(7,522
)
(8,826
)
Total assets
$
2,294,766
$
1,921,742
$
2,182,477
Interest-bearing demand and money market
deposits
$
643,199
3,917
2.45
%
$
505,382
1,245
1.00
%
$
574,349
2,710
1.87
%
Savings deposits
368,049
206
0.23
%
415,873
139
0.14
%
402,791
323
0.32
%
IRA and time certificates
370,130
4,067
4.42
%
185,297
1,072
2.35
%
302,434
3,321
4.36
%
Short-term borrowings
65,052
935
5.78
%
94,591
1,304
5.59
%
64,899
918
5.61
%
Long-term debt
150,177
1,738
4.65
%
18,983
216
4.61
%
115,907
1,379
4.72
%
Total interest-bearing liabilities
1,596,607
10,863
2.74
%
1,220,126
3,976
1.32
%
1,460,380
8,651
2.35
%
Demand deposits
443,168
477,305
480,103
Other liabilities
19,872
21,892
21,316
Equity
235,119
202,419
220,678
Total liabilities and equity
$
2,294,766
$
1,921,742
$
2,182,477
Net interest rate spread (3)
2.11
%
2.89
%
2.40
%
Net interest income and net interest
margin on a taxable-equivalent basis (4)
13,933
2.72
%
13,989
3.28
%
14,703
2.99
%
Ratio of interest-earning assets to
interest-bearing liabilities
128.81
%
141.71
%
133.67
%
(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
(Dollars in thousands)
March 31, 2024
(Unaudited)
December 31, 2023
ASSETS:
Cash and due from banks
$
24,950
36,535
Interest-bearing demand deposits
8,001
3,188
Total cash and cash equivalents
32,951
39,723
Investment securities:
Equity securities with a readily
determinable fair value, at fair value
1,334
1,336
Equity securities without a readily
determinable fair value, at cost
3,666
3,666
Debt securities, available-for-sale, at
fair value
262,786
276,601
Debt securities, held-to-maturity, at
cost, net of allowance for credit losses of $5 and $5 at March 31,
2024 and December 31, 2023, respectively
16,746
16,858
Federal Reserve Bank stock, at cost
5,774
5,086
Federal Home Loan Bank stock, at cost
16,469
15,176
Loans, net of allowance for credit losses
of $10,557 and 10,525 at March 31, 2024 and December 31, 2023,
respectively
1,645,797
1,712,946
Loans held for sale
75,581
—
Premises and equipment, net
36,690
36,302
Operating lease right-of-use assets
5,838
6,000
Goodwill
79,559
79,509
Core deposit and other intangibles,
net
8,903
9,494
Bank-owned life insurance
50,165
49,847
Interest receivable
9,115
8,405
Other assets, net
31,777
30,643
TOTAL ASSETS
$
2,283,151
2,291,592
LIABILITIES:
Deposits:
Noninterest-bearing
$
435,580
462,267
Interest-bearing
1,422,913
1,362,122
Total deposits
1,858,493
1,824,389
Short-term borrowings
10,000
97,395
Long-term debt
162,638
113,123
Operating lease liabilities
6,123
6,261
Accrued interest and other liabilities
12,234
15,121
TOTAL LIABILITIES
2,049,488
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 16,435,659 and 16,384,952 shares at March
31, 2024 and December 31, 2023, respectively; outstanding
13,224,276 and 13,173,569 shares at March 31, 2024 and December 31,
2023, respectively
174,082
173,637
Retained earnings
139,050
140,017
Treasury shares at cost, 3,211,383 and
3,211,383 shares at March 31, 2024 and December 31, 2023,
respectively
(56,015
)
(56,015
)
Accumulated other comprehensive loss, net
of taxes
(23,454
)
(22,336
)
TOTAL SHAREHOLDERS' EQUITY
233,663
235,303
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY
$
2,283,151
$
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 March 31,
2024
2023
INTEREST INCOME:
Interest and fees on loans
$
22,682
16,143
Dividends on equity securities:
With a readily determinable fair value
9
17
Without a readily determinable fair
value
31
20
Interest on debt securities:
Taxable
1,232
1,343
Non-taxable
143
176
Other investments
661
219
TOTAL INTEREST INCOME
24,758
17,918
INTEREST EXPENSE:
Interest on deposits
8,190
2,456
Interest on short-term borrowings
935
1,304
Interest on long-term debt
1,738
216
TOTAL INTEREST EXPENSE
10,863
3,976
NET INTEREST INCOME
13,895
13,942
PROVISION FOR (RECOVERY OF) CREDIT
LOSSES
125
(57
)
NET INTEREST INCOME AFTER PROVISION FOR
(RECOVERY OF) CREDIT LOSSES
13,770
13,999
NON-INTEREST INCOME:
Fiduciary income
1,973
1,740
Service charges and fees on deposit
accounts
1,384
1,482
Net gains from sales of debt securities,
available-for-sale
(214
)
—
Bank-owned life insurance income
318
271
Net gains from sales of loans
522
6
Other operating income
(54
)
82
TOTAL NON-INTEREST INCOME
3,929
3,581
NON-INTEREST EXPENSE:
Salaries and employee benefits
8,554
7,349
Equipment expenses
390
361
Occupancy expense, net
1,005
963
State financial institutions tax
428
397
Marketing
174
192
Amortization of intangibles
236
111
FDIC insurance premiums, net
504
215
Contracted services
784
641
Merger-related expenses
775
25
Other non-interest expense
2,622
2,271
TOTAL NON-INTEREST EXPENSE
15,472
12,525
INCOME BEFORE INCOME TAXES
2,227
5,055
PROVISION FOR INCOME TAXES
312
898
NET INCOME
$
1,915
4,157
Earnings per common share:
Basic
$
0.15
0.37
Diluted
$
0.15
0.37
Weighted average common shares
outstanding:
Basic
13,112,302
11,189,170
Diluted
13,112,302
11,189,170
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240429430727/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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