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LCNB Corp. Reports Financial Results for the Three and Nine Months Ended September 30, 2024

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 LCNBs 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 LCNBs 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 LCNBs business and operations. Additionally, LCNBs 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

 

 

Contacts

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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