Attached files
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EX-99.1 - EXHIBIT 99.1 - LCNB CORP | exhibit9912015qr3.htm |
8-K - 8-K - LCNB CORP | lcnb-x8xk2015qr3xearningsr.htm |
Exhibit 99.2
LCNB Corp. and Subsidiaries
Financial Highlights
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||||||||
9/30/2015 | 6/30/2015 | 3/31/2015 | 12/31/2014 | 9/30/2014 | 9/30/2015 | 9/30/2014 | ||||||||||||||||
Condensed Income Statement | ||||||||||||||||||||||
Interest income | $ | 10,409 | $ | 11,348 | 10,090 | 10,367 | 9,906 | 31,847 | 29,110 | |||||||||||||
Interest expense | 912 | 748 | 762 | 844 | 911 | 2,422 | 2,746 | |||||||||||||||
Net interest income | 9,497 | 10,600 | 9,328 | 9,523 | 8,995 | 29,425 | 26,364 | |||||||||||||||
Provision for loan losses | 240 | 677 | 69 | 193 | 401 | 986 | 737 | |||||||||||||||
Net interest income after provision | 9,257 | 9,923 | 9,259 | 9,330 | 8,594 | 28,439 | 25,627 | |||||||||||||||
Non-interest income | 2,386 | 2,831 | 2,306 | 2,449 | 2,315 | 7,523 | 6,693 | |||||||||||||||
Non-interest expense | 8,088 | 8,426 | 7,649 | 7,334 | 7,238 | 24,163 | 23,510 | |||||||||||||||
Income before income taxes | 3,555 | 4,328 | 3,916 | 4,445 | 3,671 | 11,799 | 8,810 | |||||||||||||||
Provision for income taxes | 922 | 1,205 | 1,082 | 1,228 | 953 | 3,209 | 2,158 | |||||||||||||||
Net income | $ | 2,633 | 3,123 | 2,834 | 3,217 | 2,718 | 8,590 | 6,652 | ||||||||||||||
Per Share Data | ||||||||||||||||||||||
Dividends per share | $ | 0.16 | 0.16 | 0.16 | 0.16 | 0.16 | 0.48 | 0.48 | ||||||||||||||
Basic earnings per share | $ | 0.26 | 0.33 | 0.30 | 0.34 | 0.30 | 0.89 | 0.72 | ||||||||||||||
Diluted earnings per share | $ | 0.26 | 0.32 | 0.30 | 0.34 | 0.29 | 0.88 | 0.71 | ||||||||||||||
Book value per share | $ | 14.22 | 13.91 | 13.80 | 13.50 | 13.24 | 14.22 | 13.24 | ||||||||||||||
Tangible book value per share | $ | 10.66 | 10.33 | 10.40 | 10.08 | 9.80 | 10.66 | 9.80 | ||||||||||||||
Average basic shares outstanding | 9,898,233 | 9,694,732 | 9,312,636 | 9,306,382 | 9,299,691 | 9,637,344 | 9,293,866 | |||||||||||||||
Average diluted shares outstanding | 10,005,788 | 9,804,728 | 9,410,774 | 9,403,013 | 9,405,013 | 9,742,839 | 9,407,110 | |||||||||||||||
Shares outstanding at period end | 9,903,294 | 9,896,904 | 9,317,583 | 9,311,318 | 9,305,208 | 9,903,294 | 9,305,208 | |||||||||||||||
Selected Financial Ratios | ||||||||||||||||||||||
Return on average assets | 0.82 | % | 1.03 | % | 1.02 | % | 1.14 | % | 0.95 | % | 0.95 | % | 0.79 | % | ||||||||
Return on average equity | 7.51 | % | 9.21 | % | 9.01 | % | 10.18 | % | 8.71 | % | 8.55 | % | 7.30 | % | ||||||||
Dividend payout ratio | 61.54 | % | 48.48 | % | 53.33 | % | 47.06 | % | 53.33 | % | 53.93 | % | 66.67 | % | ||||||||
Net interest margin (tax equivalent) | 3.37 | % | 3.95 | % | 3.83 | % | 3.82 | % | 3.57 | % | 3.71 | % | 3.60 | % | ||||||||
Efficiency ratio (tax equivalent) | 65.97 | % | 61.08 | % | 63.90 | % | 59.48 | % | 61.97 | % | 63.55 | % | 68.95 | % | ||||||||
Selected Balance Sheet Items | ||||||||||||||||||||||
Investment securities and stock | $ | 391,430 | 378,651 | 329,429 | 314,074 | 322,341 | ||||||||||||||||
Loans: | ||||||||||||||||||||||
Commercial and industrial | $ | 45,325 | 47,958 | 36,447 | 35,424 | 34,997 | ||||||||||||||||
Commercial, secured by real estate | 407,818 | 399,551 | 381,371 | 379,141 | 371,533 | |||||||||||||||||
Residential real estate | 274,054 | 273,249 | 255,926 | 254,087 | 248,113 | |||||||||||||||||
Consumer | 19,283 | 19,718 | 17,296 | 18,006 | 19,305 | |||||||||||||||||
Agricultural | 15,462 | 13,434 | 9,816 | 11,472 | 9,249 | |||||||||||||||||
Other, including deposit overdrafts | 676 | 638 | 678 | 680 | 2,651 | |||||||||||||||||
Deferred net origination costs (fees) | 215 | 188 | 151 | 146 | 67 | |||||||||||||||||
Loans, gross | 762,833 | 754,736 | 701,685 | 698,956 | 685,915 | |||||||||||||||||
Less allowance for loan losses | 2,958 | 2,879 | 2,837 | 3,121 | 3,298 | |||||||||||||||||
Loans, net | $ | 759,875 | 751,857 | 698,848 | 695,835 | 682,617 | ||||||||||||||||
Total assets | $ | 1,275,171 | 1,249,363 | 1,129,497 | 1,108,066 | 1,123,356 | ||||||||||||||||
Total deposits | 1,103,513 | 1,084,033 | 973,725 | 946,205 | 956,633 | |||||||||||||||||
Short-term borrowings | 14,931 | 12,731 | 13,454 | 16,645 | 24,954 | |||||||||||||||||
Long-term debt | 6,016 | 6,085 | 6,153 | 11,357 | 11,432 | |||||||||||||||||
Total shareholders’ equity | 140,851 | 137,698 | 128,576 | 125,695 | 123,179 | |||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||
9/30/2015 | 6/30/2015 | 3/31/2015 | 12/31/2014 | 9/30/2014 | 9/30/2015 | 9/30/2014 | ||||||||||||||||
Selected Balance Sheet Items, continued | ||||||||||||||||||||||
Tangible common equity (TCE) | $ | 105,063 | 101,694 | 96,340 | 93,277 | 90,579 | ||||||||||||||||
Tangible common assets (TCA) | 1,239,383 | 1,213,359 | 1,097,261 | 1,075,648 | 1,090,756 | |||||||||||||||||
TCE/TA | 8.48 | % | 8.38 | % | 8.78 | % | 8.67 | % | 8.30 | % | ||||||||||||
Loans to deposit ratio | 69.13 | % | 69.62 | % | 72.06 | % | 73.87 | % | 71.70 | % | ||||||||||||
Equity to assets ratio | 11.05 | % | 11.02 | % | 11.38 | % | 11.34 | % | 10.97 | % | ||||||||||||
Selected Average Balance Sheet Items | ||||||||||||||||||||||
Investment securities and stock | $ | 385,353 | 360,750 | 313,279 | 311,395 | 348,469 | 353,391 | 333,200 | ||||||||||||||
Loans | $ | 760,159 | 737,021 | 699,959 | 694,185 | 688,972 | 732,600 | 674,181 | ||||||||||||||
Less allowance for loan losses | 2,885 | 2,865 | 2,870 | 3,075 | 3,288 | 2,873 | 3,342 | |||||||||||||||
Net loans | $ | 757,274 | 734,156 | 697,089 | 691,110 | 685,684 | 729,727 | 670,839 | ||||||||||||||
Total assets | $ | 1,267,171 | 1,220,938 | 1,125,326 | 1,123,949 | 1,140,922 | 1,204,909 | 1,119,396 | ||||||||||||||
Total deposits | 1,099,730 | 1,057,818 | 969,658 | 967,505 | 976,109 | 1,042,879 | 963,521 | |||||||||||||||
Short-term borrowings | 13,450 | 12,803 | 13,824 | 12,217 | 22,547 | 13,358 | 15,697 | |||||||||||||||
Long-term debt | 6,040 | 6,108 | 6,598 | 11,382 | 11,457 | 6,247 | 11,602 | |||||||||||||||
Total shareholders’ equity | 139,032 | 136,003 | 127,608 | 125,302 | 123,807 | 134,256 | 121,845 | |||||||||||||||
Asset Quality | ||||||||||||||||||||||
Net charge-offs | $ | 160 | 636 | 352 | 370 | 496 | ||||||||||||||||
Other real estate owned | 1,208 | 1,364 | 1,364 | 1,370 | 1,460 | |||||||||||||||||
Non-accrual loans | 2,254 | 1,961 | 3,972 | 5,599 | 6,264 | |||||||||||||||||
Loans past due 90 days or more and still accruing | 130 | 128 | 355 | 203 | 111 | |||||||||||||||||
Total nonperforming loans | $ | 2,384 | 2,089 | 4,327 | 5,802 | 6,375 | ||||||||||||||||
Net charge-offs to average loans | 0.08 | % | 0.35 | % | 0.20 | % | 0.21 | % | 0.29 | % | ||||||||||||
Allowance for loan losses to total loans | 0.39 | % | 0.38 | % | 0.40 | % | 0.45 | % | 0.48 | % | ||||||||||||
Nonperforming loans to total loans | 0.31 | % | 0.28 | % | 0.62 | % | 0.83 | % | 0.93 | % | ||||||||||||
Nonperforming assets to total assets | 0.28 | % | 0.28 | % | 0.50 | % | 0.65 | % | 0.70 | % | ||||||||||||
Assets Under Management | ||||||||||||||||||||||
LCNB Corp. total assets | $ | 1,275,171 | 1,249,363 | 1,129,497 | 1,108,066 | 1,123,356 | ||||||||||||||||
Trust and investments (fair value) | 258,675 | 272,209 | 264,122 | 258,266 | 255,409 | |||||||||||||||||
Mortgage loans serviced | 113,610 | 117,204 | 116,534 | 120,433 | 123,792 | |||||||||||||||||
Business cash management | 6,809 | 6,628 | 5,839 | 5,811 | 5,846 | |||||||||||||||||
Brokerage accounts (fair value) | 142,151 | 144,186 | 141,439 | 132,823 | 127,303 | |||||||||||||||||
Total assets managed | $ | 1,796,416 | 1,789,590 | 1,657,431 | 1,625,399 | 1,635,706 | ||||||||||||||||
Non-GAAP Financial Measures | ||||||||||||||||||||||
Accreted income on acquired loans | $ | 243 | 1,348 | 326 | 442 | 375 | 1,917 | 1,110 | ||||||||||||||
Net income | $ | 2,633 | 3,123 | 2,834 | 3,217 | 2,718 | 8,590 | 6,652 | ||||||||||||||
Less (add) net gain (loss) on sales of securities, net of tax | 0 | 146 | 73 | 37 | 64 | 219 | 61 | |||||||||||||||
Add merger-related expenses, net of tax | 32 | 363 | 50 | 26 | 3 | 461 | 902 | |||||||||||||||
Core net income | $ | 2,665 | 3,340 | 2,811 | 3,206 | 2,657 | 8,832 | 7,493 | ||||||||||||||
Basic core earnings per share | $ | 0.27 | 0.34 | 0.30 | 0.34 | 0.29 | 0.92 | 0.81 | ||||||||||||||
Diluted core earnings per share | $ | 0.27 | 0.34 | 0.30 | 0.34 | 0.28 | 0.91 | 0.80 | ||||||||||||||
Adjusted return on average assets | 0.83 | % | 1.10 | % | 1.01 | % | 1.13 | % | 0.92 | % | 0.98 | % | 0.89 | % | ||||||||
Adjusted return on average equity | 7.60 | % | 9.85 | % | 8.86 | % | 10.06 | % | 8.44 | % | 8.80 | % | 8.17 | % | ||||||||
Core efficiency ratio (tax equivalent) | 65.57 | % | 58.23 | % | 63.91 | % | 59.48 | % | 62.46 | % | 62.41 | % | 65.12 | % |
LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
September 30, 2015 (Unaudited) | December 31, 2014 | ||||||
ASSETS: | |||||||
Cash and due from banks | $ | 18,844 | 14,235 | ||||
Interest-bearing demand deposits | 14,367 | 1,610 | |||||
Total cash and cash equivalents | 33,211 | 15,845 | |||||
Investment securities: | |||||||
Available-for-sale, at fair value | 360,741 | 285,365 | |||||
Held-to-maturity, at cost | 24,575 | 22,725 | |||||
Federal Reserve Bank stock, at cost | 2,476 | 2,346 | |||||
Federal Home Loan Bank stock, at cost | 3,638 | 3,638 | |||||
Loans, net | 759,875 | 695,835 | |||||
Premises and equipment, net | 22,434 | 20,733 | |||||
Goodwill | 30,187 | 27,638 | |||||
Core deposit and other intangibles | 5,601 | 4,780 | |||||
Bank owned life insurance | 22,406 | 21,936 | |||||
Other assets | 10,027 | 7,225 | |||||
TOTAL ASSETS | $ | 1,275,171 | 1,108,066 | ||||
LIABILITIES: | |||||||
Deposits: | |||||||
Noninterest-bearing | $ | 238,796 | 213,303 | ||||
Interest-bearing | 864,717 | 732,902 | |||||
Total deposits | 1,103,513 | 946,205 | |||||
Short-term borrowings | 14,931 | 16,645 | |||||
Long-term debt | 6,016 | 11,357 | |||||
Accrued interest and other liabilities | 9,860 | 8,164 | |||||
TOTAL LIABILITIES | 1,134,320 | 982,371 | |||||
SHAREHOLDERS' EQUITY: | |||||||
Preferred shares – no par value, authorized 1,000,000 shares, none outstanding | — | — | |||||
Common shares – no par value, authorized 12,000,000 shares, issued 10,656,921 and 10,064,945 shares at September 30, 2015 and December 31, 2014, respectively | 76,711 | 67,181 | |||||
Retained earnings | 73,330 | 69,394 | |||||
Treasury shares at cost, 753,627 shares at September 30, 2015 and December 31, 2014 | (11,665 | ) | (11,665 | ) | |||
Accumulated other comprehensive loss, net of taxes | 2,475 | 785 | |||||
TOTAL SHAREHOLDERS' EQUITY | 140,851 | 125,695 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 1,275,171 | 1,108,066 |
LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||
INTEREST INCOME: | ||||||||||||
Interest and fees on loans | $ | 8,540 | 8,168 | 26,572 | 24,008 | |||||||
Interest on investment securities – | ||||||||||||
Taxable | 1,094 | 984 | 2,983 | 2,901 | ||||||||
Non-taxable | 732 | 716 | 2,087 | 2,019 | ||||||||
Other short-term investments | 43 | 38 | 205 | 182 | ||||||||
TOTAL INTEREST INCOME | 10,409 | 9,906 | 31,847 | 29,110 | ||||||||
INTEREST EXPENSE: | ||||||||||||
Interest on deposits | 834 | 800 | 2,187 | 2,423 | ||||||||
Interest on short-term borrowings | 5 | 10 | 13 | 18 | ||||||||
Interest on long-term debt | 73 | 101 | 222 | 305 | ||||||||
TOTAL INTEREST EXPENSE | 912 | 911 | 2,422 | 2,746 | ||||||||
NET INTEREST INCOME | 9,497 | 8,995 | 29,425 | 26,364 | ||||||||
PROVISION FOR LOAN LOSSES | 240 | 401 | 986 | 737 | ||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 9,257 | 8,594 | 28,439 | 25,627 | ||||||||
NON-INTEREST INCOME: | ||||||||||||
Trust income | 754 | 688 | 2,406 | 2,071 | ||||||||
Service charges and fees on deposit accounts | 1,314 | 1,245 | 3,655 | 3,619 | ||||||||
Net gain (loss) on sales of securities | — | 97 | 332 | 93 | ||||||||
Bank owned life insurance income | 156 | 165 | 470 | 507 | ||||||||
Gains from sales of mortgage loans | 34 | 24 | 288 | 92 | ||||||||
Other operating income | 128 | 96 | 372 | 311 | ||||||||
TOTAL NON-INTEREST INCOME | 2,386 | 2,315 | 7,523 | 6,693 | ||||||||
NON-INTEREST EXPENSE: | ||||||||||||
Salaries and employee benefits | 4,340 | 4,022 | 13,011 | 11,896 | ||||||||
Equipment expenses | 324 | 337 | 914 | 976 | ||||||||
Occupancy expense, net | 570 | 541 | 1,749 | 1,706 | ||||||||
State franchise tax | 251 | 231 | 753 | 714 | ||||||||
Marketing | 176 | 212 | 559 | 541 | ||||||||
Amortization of intangibles | 189 | 150 | 510 | 424 | ||||||||
FDIC insurance premiums | 136 | 183 | 432 | 492 | ||||||||
Merger-related expenses | 49 | 4 | 641 | 1,366 | ||||||||
Other non-interest expense | 2,053 | 1,558 | 5,594 | 5,395 | ||||||||
TOTAL NON-INTEREST EXPENSE | 8,088 | 7,238 | 24,163 | 23,510 | ||||||||
INCOME BEFORE INCOME TAXES | 3,555 | 3,671 | 11,799 | 8,810 | ||||||||
PROVISION FOR INCOME TAXES | 922 | 953 | 3,209 | 2,158 | ||||||||
NET INCOME | $ | 2,633 | 2,718 | 8,590 | 6,652 | |||||||
Dividends declared per common share | $ | 0.16 | 0.16 | 0.48 | 0.48 | |||||||
Earnings per common share: | ||||||||||||
Basic | $ | 0.26 | 0.30 | 0.89 | 0.72 | |||||||
Diluted | 0.26 | 0.29 | 0.88 | 0.71 | ||||||||
Weighted average common shares outstanding: | ||||||||||||
Basic | 9,898,233 | 9,299,691 | 9,637,344 | 9,293,866 | ||||||||
Diluted | 10,005,788 | 9,405,013 | 9,742,839 | 9,407,110 |