Attached files
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8-K - 8-K - LCNB CORP | lcnb-x8xk2015qr4xearningsr.htm |
EX-99.1 - EXHIBIT 99.1 - LCNB CORP | lcnb-x8xkexhibit9912015qr4.htm |
Exhibit 99.2
LCNB Corp. and Subsidiaries
Financial Highlights
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended | Year Ended | ||||||||||||||||||||
12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | 12/31/2014 | 12/31/2015 | 12/31/2014 | |||||||||||||||
Condensed Income Statement | |||||||||||||||||||||
Interest income | $ | 10,812 | 10,409 | 11,348 | 10,090 | 10,367 | 42,659 | 39,477 | |||||||||||||
Interest expense | 906 | 912 | 748 | 762 | 844 | 3,328 | 3,590 | ||||||||||||||
Net interest income | 9,906 | 9,497 | 10,600 | 9,328 | 9,523 | 39,331 | 35,887 | ||||||||||||||
Provision for loan losses | 380 | 240 | 677 | 69 | 193 | 1,366 | 930 | ||||||||||||||
Net interest income after provision | 9,526 | 9,257 | 9,923 | 9,259 | 9,330 | 37,965 | 34,957 | ||||||||||||||
Non-interest income | 2,600 | 2,386 | 2,831 | 2,306 | 2,449 | 10,123 | 9,142 | ||||||||||||||
Non-interest expense | 8,229 | 8,088 | 8,426 | 7,649 | 7,334 | 32,392 | 30,844 | ||||||||||||||
Income before income taxes | 3,897 | 3,555 | 4,328 | 3,916 | 4,445 | 15,696 | 13,255 | ||||||||||||||
Provision for income taxes | 1,013 | 922 | 1,205 | 1,082 | 1,228 | 4,222 | 3,386 | ||||||||||||||
Net income | $ | 2,884 | 2,633 | 3,123 | 2,834 | 3,217 | 11,474 | 9,869 | |||||||||||||
Per Share Data | |||||||||||||||||||||
Dividends per share | $ | 0.16 | 0.16 | 0.16 | 0.16 | 0.16 | 0.64 | 0.64 | |||||||||||||
Basic earnings per share | $ | 0.29 | 0.26 | 0.33 | 0.30 | 0.34 | 1.18 | 1.06 | |||||||||||||
Diluted earnings per share | $ | 0.29 | 0.26 | 0.32 | 0.30 | 0.34 | 1.17 | 1.05 | |||||||||||||
Book value per share | $ | 14.12 | 14.22 | 13.91 | 13.80 | 13.50 | 14.12 | 13.50 | |||||||||||||
Tangible book value per share | $ | 10.58 | 10.66 | 10.33 | 10.40 | 10.08 | 10.58 | 10.08 | |||||||||||||
Average basic shares outstanding | 9,905,612 | 9,898,233 | 9,694,732 | 9,312,636 | 9,306,382 | 9,704,965 | 9,297,019 | ||||||||||||||
Average diluted shares outstanding | 10,014,908 | 10,005,788 | 9,804,728 | 9,410,774 | 9,403,013 | 9,811,476 | 9,406,346 | ||||||||||||||
Shares outstanding at period end | 9,925,547 | 9,903,294 | 9,896,904 | 9,317,583 | 9,311,318 | 9,925,547 | 9,311,318 | ||||||||||||||
Selected Financial Ratios | |||||||||||||||||||||
Return on average assets | 0.89 | % | 0.82 | % | 1.03 | % | 1.02 | % | 1.14 | % | 0.94 | % | 0.88 | % | |||||||
Return on average equity | 8.07 | % | 7.51 | % | 9.21 | % | 9.01 | % | 10.18 | % | 8.43 | % | 8.04 | % | |||||||
Dividend payout ratio | 55.17 | % | 61.54 | % | 48.48 | % | 53.33 | % | 47.06 | % | 54.24 | % | 60.38 | % | |||||||
Net interest margin (tax equivalent) | 3.46 | % | 3.37 | % | 3.95 | % | 3.83 | % | 3.82 | % | 3.64 | % | 3.66 | % | |||||||
Efficiency ratio (tax equivalent) | 63.80 | % | 65.97 | % | 61.08 | % | 63.90 | % | 59.48 | % | 63.61 | % | 66.44 | % | |||||||
Selected Balance Sheet Items | |||||||||||||||||||||
Investment securities and stock | $ | 406,981 | 391,430 | 378,651 | 329,429 | 314,074 | |||||||||||||||
Loans: | |||||||||||||||||||||
Commercial and industrial | $ | 45,275 | 45,325 | 47,958 | 36,447 | 35,424 | |||||||||||||||
Commercial, secured by real estate | 419,633 | 407,264 | 399,551 | 381,371 | 379,141 | ||||||||||||||||
Residential real estate | 273,139 | 274,054 | 273,249 | 255,926 | 254,087 | ||||||||||||||||
Consumer | 18,510 | 19,283 | 19,718 | 17,296 | 18,006 | ||||||||||||||||
Agricultural | 13,479 | 16,016 | 13,434 | 9,816 | 11,472 | ||||||||||||||||
Other, including deposit overdrafts | 665 | 676 | 638 | 678 | 680 | ||||||||||||||||
Deferred net origination costs | 237 | 215 | 188 | 151 | 146 | ||||||||||||||||
Loans, gross | 770,938 | 762,833 | 754,736 | 701,685 | 698,956 | ||||||||||||||||
Less allowance for loan losses | 3,129 | 2,958 | 2,879 | 2,837 | 3,121 | ||||||||||||||||
Loans, net | $ | 767,809 | 759,875 | 751,857 | 698,848 | 695,835 | |||||||||||||||
Total assets | $ | 1,280,531 | 1,275,171 | 1,249,363 | 1,129,497 | 1,108,066 | |||||||||||||||
Total deposits | 1,087,160 | 1,103,513 | 1,084,033 | 973,725 | 946,205 | ||||||||||||||||
Short-term borrowings | 37,387 | 14,931 | 12,731 | 13,454 | 16,645 | ||||||||||||||||
Long-term debt | 5,947 | 6,016 | 6,085 | 6,153 | 11,357 | ||||||||||||||||
Total shareholders’ equity | 140,108 | 140,851 | 137,698 | 128,576 | 125,695 | ||||||||||||||||
Equity to assets ratio | 10.94 | % | 11.05 | % | 11.02 | % | 11.38 | % | 11.34 | % | |||||||||||
Loans to deposit ratio | 70.91 | % | 69.13 | % | 69.62 | % | 72.06 | % | 73.87 | % |
Three Months Ended | Year Ended | ||||||||||||||||||||
12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | 12/31/2014 | 12/31/2015 | 12/31/2014 | |||||||||||||||
Selected Balance Sheet Items, continued | |||||||||||||||||||||
Tangible common equity (TCE) | $ | 104,529 | 105,063 | 101,694 | 96,340 | 93,277 | |||||||||||||||
Tangible common assets (TCA) | 1,244,952 | 1,239,383 | 1,213,359 | 1,097,261 | 1,075,648 | ||||||||||||||||
TCE/TCA | 8.40 | % | 8.48 | % | 8.38 | % | 8.78 | % | 8.67 | % | |||||||||||
Selected Average Balance Sheet Items | |||||||||||||||||||||
Investment securities and stock | $ | 406,423 | 385,353 | 360,750 | 313,279 | 311,395 | 366,758 | 327,704 | |||||||||||||
Loans | $ | 764,440 | 760,159 | 737,021 | 699,959 | 694,185 | 740,626 | 679,223 | |||||||||||||
Less allowance for loan losses | 2,929 | 2,885 | 2,865 | 2,870 | 3,075 | 2,888 | 3,275 | ||||||||||||||
Net loans | $ | 761,511 | 757,274 | 734,156 | 697,089 | 691,110 | 737,738 | 675,948 | |||||||||||||
Total assets | $ | 1,285,114 | 1,267,171 | 1,220,938 | 1,125,326 | 1,123,949 | 1,225,112 | 1,120,515 | |||||||||||||
Total deposits | 1,107,214 | 1,099,730 | 1,057,818 | 969,658 | 967,505 | 1,059,095 | 964,526 | ||||||||||||||
Short-term borrowings | 20,290 | 13,450 | 12,803 | 13,824 | 12,217 | 15,105 | 14,820 | ||||||||||||||
Long-term debt | 5,970 | 6,040 | 6,108 | 6,598 | 11,382 | 6,177 | 11,546 | ||||||||||||||
Total shareholders’ equity | 141,751 | 139,032 | 136,003 | 127,608 | 125,302 | 136,145 | 122,716 | ||||||||||||||
Asset Quality | |||||||||||||||||||||
Net charge-offs | $ | 210 | 160 | 636 | 352 | 370 | |||||||||||||||
Other real estate owned | 846 | 1,208 | 1,364 | 1,364 | 1,370 | ||||||||||||||||
Non-accrual loans | 1,722 | 2,254 | 1,961 | 3,972 | 5,599 | ||||||||||||||||
Loans past due 90 days or more and still accruing | 559 | 130 | 128 | 355 | 203 | ||||||||||||||||
Total nonperforming loans | $ | 2,281 | 2,384 | 2,089 | 4,327 | 5,802 | |||||||||||||||
Net charge-offs to average loans | 0.11 | % | 0.08 | % | 0.35 | % | 0.20 | % | 0.21 | % | |||||||||||
Allowance for loan losses to total loans | 0.41 | % | 0.39 | % | 0.38 | % | 0.40 | % | 0.45 | % | |||||||||||
Nonperforming loans to total loans | 0.30 | % | 0.31 | % | 0.28 | % | 0.62 | % | 0.83 | % | |||||||||||
Nonperforming assets to total assets | 0.24 | % | 0.28 | % | 0.28 | % | 0.50 | % | 0.65 | % | |||||||||||
Assets Under Management | |||||||||||||||||||||
LCNB Corp. total assets | $ | 1,280,531 | 1,275,171 | 1,249,363 | 1,129,497 | 1,108,066 | |||||||||||||||
Trust and investments (fair value) | 283,193 | 258,675 | 272,209 | 264,122 | 258,266 | ||||||||||||||||
Mortgage loans serviced | 111,837 | 113,610 | 117,204 | 116,534 | 120,433 | ||||||||||||||||
Business cash management | 7,271 | 6,809 | 6,628 | 5,839 | 5,811 | ||||||||||||||||
Brokerage accounts (fair value) | 148,956 | 142,151 | 144,186 | 141,439 | 132,823 | ||||||||||||||||
Total assets managed | $ | 1,831,788 | 1,796,416 | 1,789,590 | 1,657,431 | 1,625,399 | |||||||||||||||
Non-GAAP Financial Measures | |||||||||||||||||||||
Accreted income on acquired loans | $ | 219 | 243 | 1,348 | 326 | 442 | 2,136 | 1,553 | |||||||||||||
Amortization of acquired deposit premiums | $ | 34 | 46 | 211 | 186 | 191 | 477 | 801 | |||||||||||||
Net income | $ | 2,884 | 2,633 | 3,123 | 2,834 | 3,217 | 11,474 | 9,869 | |||||||||||||
Less (add) net gain (loss) on sales of securities, net of tax | 108 | 0 | 146 | 73 | 37 | 327 | 98 | ||||||||||||||
Add merger-related expenses, net of tax | 2 | 32 | 363 | 66 | 26 | 463 | 928 | ||||||||||||||
Core net income | $ | 2,778 | 2,665 | 3,340 | 2,827 | 3,206 | 11,610 | 10,699 | |||||||||||||
Basic core earnings per share | $ | 0.28 | 0.27 | 0.34 | 0.30 | 0.34 | 1.20 | 1.15 | |||||||||||||
Diluted core earnings per share | $ | 0.28 | 0.27 | 0.34 | 0.30 | 0.34 | 1.18 | 1.14 | |||||||||||||
Adjusted return on average assets | 0.86 | % | 0.83 | % | 1.10 | % | 1.01 | % | 1.13 | % | 0.95 | % | 0.95 | % | |||||||
Adjusted return on average equity | 7.77 | % | 7.60 | % | 9.85 | % | 8.86 | % | 10.06 | % | 8.53 | % | 8.67 | % | |||||||
Core efficiency ratio (tax equivalent) | 64.60 | % | 65.57 | % | 58.23 | % | 63.91 | % | 59.48 | % | 62.96 | % | 63.62 | % |
LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
December 31, 2015 (Unaudited) | December 31, 2014 | ||||||
ASSETS: | |||||||
Cash and due from banks | $ | 14,155 | 14,235 | ||||
Interest-bearing demand deposits | 832 | 1,610 | |||||
Total cash and cash equivalents | 14,987 | 15,845 | |||||
Investment securities: | |||||||
Available-for-sale, at fair value | 377,978 | 285,365 | |||||
Held-to-maturity, at cost | 22,633 | 22,725 | |||||
Federal Reserve Bank stock, at cost | 2,732 | 2,346 | |||||
Federal Home Loan Bank stock, at cost | 3,638 | 3,638 | |||||
Loans, net | 767,809 | 695,835 | |||||
Premises and equipment, net | 22,100 | 20,733 | |||||
Goodwill | 30,183 | 27,638 | |||||
Core deposit and other intangibles | 5,396 | 4,780 | |||||
Bank owned life insurance | 22,561 | 21,936 | |||||
Other assets | 10,514 | 7,225 | |||||
TOTAL ASSETS | $ | 1,280,531 | 1,108,066 | ||||
LIABILITIES: | |||||||
Deposits: | |||||||
Noninterest-bearing | $ | 250,306 | 213,303 | ||||
Interest-bearing | 836,854 | 732,902 | |||||
Total deposits | 1,087,160 | 946,205 | |||||
Short-term borrowings | 37,387 | 16,645 | |||||
Long-term debt | 5,947 | 11,357 | |||||
Accrued interest and other liabilities | 9,929 | 8,164 | |||||
TOTAL LIABILITIES | 1,140,423 | 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 10,679,174 and 10,064,945 shares at December 31, 2015 and December 31, 2014, respectively | 76,908 | 67,181 | |||||
Retained earnings | 74,629 | 69,394 | |||||
Treasury shares at cost, 753,627 shares at December 31, 2015 and December 31, 2014 | (11,665 | ) | (11,665 | ) | |||
Accumulated other comprehensive loss, net of taxes | 236 | 785 | |||||
TOTAL SHAREHOLDERS' EQUITY | 140,108 | 125,695 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 1,280,531 | 1,108,066 |
LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended December 31, | Year Ended December 31, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||
INTEREST INCOME: | ||||||||||||
Interest and fees on loans | $ | 8,713 | 8,698 | 35,285 | 32,706 | |||||||
Interest on investment securities – | ||||||||||||
Taxable | 1,214 | 856 | 4,197 | 3,757 | ||||||||
Non-taxable | 761 | 694 | 2,848 | 2,713 | ||||||||
Other short-term investments | 124 | 119 | 329 | 301 | ||||||||
TOTAL INTEREST INCOME | 10,812 | 10,367 | 42,659 | 39,477 | ||||||||
INTEREST EXPENSE: | ||||||||||||
Interest on deposits | 822 | 738 | 3,009 | 3,161 | ||||||||
Interest on short-term borrowings | 11 | 4 | 24 | 22 | ||||||||
Interest on long-term debt | 73 | 102 | 295 | 407 | ||||||||
TOTAL INTEREST EXPENSE | 906 | 844 | 3,328 | 3,590 | ||||||||
NET INTEREST INCOME | 9,906 | 9,523 | 39,331 | 35,887 | ||||||||
PROVISION FOR LOAN LOSSES | 380 | 193 | 1,366 | 930 | ||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 9,526 | 9,330 | 37,965 | 34,957 | ||||||||
NON-INTEREST INCOME: | ||||||||||||
Trust income | 856 | 832 | 3,262 | 2,903 | ||||||||
Service charges and fees on deposit accounts | 1,265 | 1,219 | 4,920 | 4,838 | ||||||||
Net gain (loss) on sales of securities | 163 | 56 | 495 | 149 | ||||||||
Bank owned life insurance income | 155 | 164 | 625 | 671 | ||||||||
Gains from sales of mortgage loans | 55 | 55 | 343 | 147 | ||||||||
Other operating income | 106 | 123 | 478 | 434 | ||||||||
TOTAL NON-INTEREST INCOME | 2,600 | 2,449 | 10,123 | 9,142 | ||||||||
NON-INTEREST EXPENSE: | ||||||||||||
Salaries and employee benefits | 4,582 | 3,866 | 17,593 | 15,762 | ||||||||
Equipment expenses | 343 | 340 | 1,257 | 1,316 | ||||||||
Occupancy expense, net | 558 | 526 | 2,307 | 2,232 | ||||||||
State franchise tax | 248 | 241 | 1,001 | 955 | ||||||||
Marketing | 161 | 162 | 720 | 703 | ||||||||
Amortization of intangibles | 190 | 150 | 700 | 574 | ||||||||
FDIC insurance premiums | 166 | 168 | 598 | 660 | ||||||||
Merger-related expenses | 2 | 34 | 643 | 1,400 | ||||||||
Other non-interest expense | 1,979 | 1,847 | 7,573 | 7,242 | ||||||||
TOTAL NON-INTEREST EXPENSE | 8,229 | 7,334 | 32,392 | 30,844 | ||||||||
INCOME BEFORE INCOME TAXES | 3,897 | 4,445 | 15,696 | 13,255 | ||||||||
PROVISION FOR INCOME TAXES | 1,013 | 1,228 | 4,222 | 3,386 | ||||||||
NET INCOME | $ | 2,884 | 3,217 | 11,474 | 9,869 | |||||||
Dividends declared per common share | $ | 0.16 | 0.16 | 0.64 | 0.64 | |||||||
Earnings per common share: | ||||||||||||
Basic | $ | 0.29 | 0.34 | 1.18 | 1.06 | |||||||
Diluted | 0.29 | 0.34 | 1.17 | 1.05 | ||||||||
Weighted average common shares outstanding: | ||||||||||||
Basic | 9,905,612 | 9,306,382 | 9,704,965 | 9,297,019 | ||||||||
Diluted | 10,014,908 | 9,403,013 | 9,811,476 | 9,406,346 |