Attached files
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8-K - 8-K - LCNB CORP | lcnb-x8xk2017qr2xearningsr.htm |
EX-99.1 - EXHIBIT 99.1 - LCNB CORP | lcnb-x8xkexhibit9912017qr2.htm |
Exhibit 99.2
LCNB Corp. and Subsidiaries
Financial Highlights
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended | Six Months Ended | ||||||||||||||||||||
6/30/2017 | 3/31/2017 | 12/31/2016 | 9/30/2016 | 6/30/2016 | 6/30/2017 | 6/30/2016 | |||||||||||||||
Condensed Income Statement | |||||||||||||||||||||
Interest income | $ | 10,934 | 10,864 | 11,226 | 10,895 | 11,008 | 21,798 | 21,629 | |||||||||||||
Interest expense | 861 | 877 | 887 | 885 | 883 | 1,738 | 1,732 | ||||||||||||||
Net interest income | 10,073 | 9,987 | 10,339 | 10,010 | 10,125 | 20,060 | 19,897 | ||||||||||||||
Provision for loan losses | 222 | 15 | 55 | 372 | 396 | 237 | 486 | ||||||||||||||
Net interest income after provision | 9,851 | 9,972 | 10,284 | 9,638 | 9,729 | 19,823 | 19,411 | ||||||||||||||
Non-interest income | 2,790 | 2,430 | 2,615 | 2,846 | 2,750 | 5,220 | 5,392 | ||||||||||||||
Non-interest expense | 8,611 | 7,968 | 7,908 | 8,593 | 8,468 | 16,579 | 16,760 | ||||||||||||||
Income before income taxes | 4,030 | 4,434 | 4,991 | 3,891 | 4,011 | 8,464 | 8,043 | ||||||||||||||
Provision for income taxes | 1,027 | 1,188 | 1,337 | 995 | 1,043 | 2,215 | 2,111 | ||||||||||||||
Net income | $ | 3,003 | 3,246 | 3,654 | 2,896 | 2,968 | 6,249 | 5,932 | |||||||||||||
Accreted income on acquired loans | $ | 180 | 220 | 495 | 223 | 304 | 400 | 647 | |||||||||||||
Tax-equivalent net interest income | $ | 10,494 | 10,410 | 10,772 | 10,432 | 10,538 | 20,904 | 20,704 | |||||||||||||
Per Share Data | |||||||||||||||||||||
Dividends per share | $ | 0.16 | 0.16 | 0.16 | 0.16 | 0.16 | 0.32 | 0.32 | |||||||||||||
Basic earnings per common share | $ | 0.30 | 0.32 | 0.37 | 0.29 | 0.30 | 0.62 | 0.60 | |||||||||||||
Diluted earnings per common share | $ | 0.30 | 0.32 | 0.37 | 0.29 | 0.29 | 0.62 | 0.59 | |||||||||||||
Book value per share | $ | 14.77 | 14.52 | 14.30 | 14.70 | 14.66 | 14.77 | 14.66 | |||||||||||||
Tangible book value per share | $ | 11.38 | 11.11 | 10.86 | 11.24 | 11.17 | 11.38 | 11.17 | |||||||||||||
Average basic common shares outstanding | 10,004,422 | 9,995,054 | 9,984,344 | 9,962,571 | 9,922,024 | 9,999,765 | 9,919,070 | ||||||||||||||
Average diluted common shares outstanding | 10,011,312 | 10,002,878 | 9,997,565 | 9,977,592 | 9,943,797 | 10,007,192 | 9,971,900 | ||||||||||||||
Shares outstanding at period end | 10,014,004 | 10,009,642 | 9,998,025 | 9,993,695 | 9,937,262 | 10,014,004 | 9,937,262 | ||||||||||||||
Selected Financial Ratios | |||||||||||||||||||||
Return on average assets | 0.91 | % | 1.01 | % | 1.10 | % | 0.87 | % | 0.92 | % | 0.96 | % | 0.92 | % | |||||||
Return on average equity | 8.15 | % | 9.10 | % | 9.91 | % | 7.82 | % | 8.28 | % | 8.62 | % | 8.32 | % | |||||||
Dividend payout ratio | 53.33 | % | 50.00 | % | 43.24 | % | 55.17 | % | 53.33 | % | 51.61 | % | 53.33 | % | |||||||
Net interest margin (tax equivalent) | 3.50 | % | 3.55 | % | 3.56 | % | 3.42 | % | 3.55 | % | 3.53 | % | 3.52 | % | |||||||
Efficiency ratio (tax equivalent) | 64.82 | % | 62.06 | % | 59.07 | % | 64.71 | % | 63.73 | % | 63.47 | % | 64.22 | % | |||||||
Selected Balance Sheet Items | |||||||||||||||||||||
Cash and cash equivalents | $ | 29,967 | 33,274 | 18,865 | 33,213 | 19,007 | |||||||||||||||
Investment securities and stock | 373,595 | 371,501 | 368,032 | 394,798 | 399,345 | ||||||||||||||||
Loans: | |||||||||||||||||||||
Commercial and industrial | $ | 38,651 | 40,039 | 41,878 | 40,097 | 45,153 | |||||||||||||||
Commercial, secured by real estate | 495,255 | 475,594 | 477,275 | 467,512 | 455,654 | ||||||||||||||||
Residential real estate | 258,710 | 260,853 | 265,788 | 268,574 | 266,625 | ||||||||||||||||
Consumer | 17,475 | 17,646 | 19,173 | 18,752 | 18,545 | ||||||||||||||||
Agricultural | 16,014 | 15,459 | 14,802 | 15,872 | 13,605 | ||||||||||||||||
Other, including deposit overdrafts | 547 | 609 | 633 | 619 | 635 | ||||||||||||||||
Deferred net origination costs | 281 | 281 | 254 | 236 | 248 | ||||||||||||||||
Loans, gross | 826,933 | 810,481 | 819,803 | 811,662 | 800,465 | ||||||||||||||||
Less allowance for loan losses | 3,382 | 3,328 | 3,575 | 3,798 | 3,373 | ||||||||||||||||
Loans, net | $ | 823,551 | 807,153 | 816,228 | 807,864 | 797,092 | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
6/30/2017 | 3/31/2017 | 12/31/2016 | 9/30/2016 | 6/30/2016 | 6/30/2017 | 6/30/2016 | |||||||||||||||
Selected Balance Sheet Items, continued | |||||||||||||||||||||
Total earning assets | $ | 1,211,096 | 1,200,544 | 1,188,322 | 1,222,614 | 1,201,563 | |||||||||||||||
Total assets | 1,335,571 | 1,319,074 | 1,306,799 | 1,333,536 | 1,312,635 | ||||||||||||||||
Total deposits | 1,143,920 | 1,148,198 | 1,110,905 | 1,158,921 | 1,124,698 | ||||||||||||||||
Short-term borrowings | 31,712 | 15,957 | 42,040 | 16,989 | 30,541 | ||||||||||||||||
Long-term debt | 402 | 480 | 598 | 662 | 726 | ||||||||||||||||
Total shareholders’ equity | 147,927 | 145,318 | 142,944 | 146,906 | 145,710 | ||||||||||||||||
Equity to assets ratio | 11.08 | % | 11.02 | % | 10.94 | % | 11.02 | % | 11.10 | % | |||||||||||
Loans to deposits ratio | 72.29 | % | 70.59 | % | 73.80 | % | 70.04 | % | 71.17 | % | |||||||||||
Tangible common equity (TCE) | $ | 113,542 | 110,745 | 108,178 | 111,946 | 110,541 | |||||||||||||||
Tangible common assets (TCA) | 1,301,186 | 1,284,501 | 1,272,033 | 1,298,576 | 1,277,466 | ||||||||||||||||
TCE/TCA | 8.73 | % | 8.62 | % | 8.50 | % | 8.62 | % | 8.65 | % | |||||||||||
Selected Average Balance Sheet Items | |||||||||||||||||||||
Cash and cash equivalents | $ | 33,639 | 26,672 | 28,422 | 32,011 | 29,399 | 30,173 | 28,466 | |||||||||||||
Investment securities and stock | 373,295 | 366,499 | 380,138 | 396,620 | 396,130 | 369,916 | 392,889 | ||||||||||||||
Loans | $ | 811,186 | 813,597 | 812,537 | 800,729 | 784,324 | 812,385 | 778,264 | |||||||||||||
Less allowance for loan losses | 3,334 | 3,557 | 3,654 | 3,382 | 3,103 | 3,445 | 3,116 | ||||||||||||||
Net loans | $ | 807,852 | 810,040 | 808,883 | 797,347 | 781,221 | 808,940 | 775,148 | |||||||||||||
Total earning assets | $ | 1,202,129 | 1,188,383 | 1,204,360 | 1,212,232 | 1,193,585 | 1,195,294 | 1,182,647 | |||||||||||||
Total assets | 1,321,442 | 1,308,591 | 1,316,037 | 1,323,532 | 1,303,073 | 1,315,052 | 1,290,543 | ||||||||||||||
Total deposits | 1,148,206 | 1,125,457 | 1,138,740 | 1,147,981 | 1,133,403 | 1,136,895 | 1,118,867 | ||||||||||||||
Short-term borrowings | 15,030 | 28,500 | 20,406 | 16,328 | 14,355 | 21,728 | 17,532 | ||||||||||||||
Long-term debt | 441 | 537 | 620 | 684 | 747 | 489 | 1,002 | ||||||||||||||
Total shareholders’ equity | 147,826 | 144,672 | 146,602 | 147,371 | 144,185 | 146,258 | 143,316 | ||||||||||||||
Equity to assets ratio | 11.19 | % | 11.06 | % | 11.14 | % | 11.13 | % | 11.06 | % | 11.12 | % | 11.11 | % | |||||||
Loans to deposits ratio | 70.65 | % | 72.29 | % | 71.35 | % | 69.75 | % | 69.20 | % | 71.46 | % | 69.56 | % | |||||||
Asset Quality | |||||||||||||||||||||
Net charge-offs | $ | 168 | 262 | 278 | (53 | ) | 173 | 430 | 242 | ||||||||||||
Other real estate owned | 0 | 0 | 0 | 270 | 682 | 0 | 682 | ||||||||||||||
Non-accrual loans | 3,747 | 3,869 | 5,725 | 4,619 | 2,697 | 3,747 | 2,697 | ||||||||||||||
Loans past due 90 days or more and still accruing | 141 | 12 | 23 | 20 | 369 | 141 | 369 | ||||||||||||||
Total nonperforming loans | $ | 3,888 | 3,881 | 5,748 | 4,639 | 3,066 | 3,888 | 3,066 | |||||||||||||
Net charge-offs to average loans | 0.08 | % | 0.13 | % | 0.14 | % | (0.03 | )% | 0.09 | % | 0.11 | % | 0.06 | % | |||||||
Allowance for loan losses to total loans | 0.41 | % | 0.41 | % | 0.44 | % | 0.47 | % | 0.42 | % | 0.41 | % | 0.42 | % | |||||||
Nonperforming loans to total loans | 0.47 | % | 0.48 | % | 0.70 | % | 0.57 | % | 0.38 | % | 0.47 | % | 0.38 | % | |||||||
Nonperforming assets to total assets | 0.29 | % | 0.29 | % | 0.44 | % | 0.37 | % | 0.29 | % | 0.29 | % | 0.29 | % | |||||||
Assets Under Management | |||||||||||||||||||||
LCNB Corp. total assets | $ | 1,335,571 | 1,319,074 | 1,306,799 | 1,333,536 | 1,312,635 | |||||||||||||||
Trust and investments (fair value) | 315,450 | 316,856 | 303,534 | 293,808 | 284,118 | ||||||||||||||||
Mortgage loans serviced | 98,234 | 99,324 | 100,982 | 105,018 | 107,189 | ||||||||||||||||
Cash management | 45,519 | 29,102 | 30,319 | 27,453 | 28,362 | ||||||||||||||||
Brokerage accounts (fair value) | 209,019 | 199,019 | 188,663 | 179,244 | 163,596 | ||||||||||||||||
Total assets managed | $ | 2,003,793 | 1,963,375 | 1,930,297 | 1,939,059 | 1,895,900 |
LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(Dollars in thousands)
June 30, 2017 (Unaudited) | December 31, 2016 | |||||
ASSETS: | ||||||
Cash and due from banks | $ | 19,399 | 18,378 | |||
Interest-bearing demand deposits | 10,568 | 487 | ||||
Total cash and cash equivalents | 29,967 | 18,865 | ||||
Investment securities: | ||||||
Available-for-sale, at fair value | 328,788 | 320,659 | ||||
Held-to-maturity, at cost | 38,437 | 41,003 | ||||
Federal Reserve Bank stock, at cost | 2,732 | 2,732 | ||||
Federal Home Loan Bank stock, at cost | 3,638 | 3,638 | ||||
Loans, net | 823,551 | 816,228 | ||||
Premises and equipment, net | 34,980 | 30,244 | ||||
Goodwill | 30,183 | 30,183 | ||||
Core deposit and other intangibles | 4,202 | 4,582 | ||||
Bank owned life insurance | 27,604 | 27,307 | ||||
Other assets | 11,489 | 11,358 | ||||
TOTAL ASSETS | $ | 1,335,571 | 1,306,799 | |||
LIABILITIES: | ||||||
Deposits: | ||||||
Noninterest-bearing | $ | 275,346 | 271,332 | |||
Interest-bearing | 868,574 | 839,573 | ||||
Total deposits | 1,143,920 | 1,110,905 | ||||
Short-term borrowings | 31,712 | 42,040 | ||||
Long-term debt | 402 | 598 | ||||
Accrued interest and other liabilities | 11,610 | 10,312 | ||||
TOTAL LIABILITIES | 1,187,644 | 1,163,855 | ||||
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 at June 30, 2017 and December 31, 2016; issued 10,767,631 and 10,751,652 shares at June 30, 2017 and December 31, 2016, respectively | 76,785 | 76,490 | ||||
Retained earnings | 83,782 | 80,736 | ||||
Treasury shares at cost, 753,627 shares at March 31, 2017 and December 31, 2016 | (11,665 | ) | (11,665 | ) | ||
Accumulated other comprehensive income, net of taxes | (975 | ) | (2,617 | ) | ||
TOTAL SHAREHOLDERS' EQUITY | 147,927 | 142,944 | ||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 1,335,571 | 1,306,799 |
LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||
INTEREST INCOME: | ||||||||||||
Interest and fees on loans | $ | 8,823 | 8,892 | 17,738 | 17,519 | |||||||
Interest on investment securities – | ||||||||||||
Taxable | 1,149 | 1,187 | 2,242 | 2,376 | ||||||||
Non-taxable | 795 | 794 | 1,594 | 1,552 | ||||||||
Other short-term investments | 167 | 135 | 224 | 182 | ||||||||
TOTAL INTEREST INCOME | 10,934 | 11,008 | 21,798 | 21,629 | ||||||||
INTEREST EXPENSE: | ||||||||||||
Interest on deposits | 846 | 870 | 1,689 | 1,693 | ||||||||
Interest on short-term borrowings | 12 | 8 | 42 | 22 | ||||||||
Interest on long-term debt | 3 | 5 | 7 | 17 | ||||||||
TOTAL INTEREST EXPENSE | 861 | 883 | 1,738 | 1,732 | ||||||||
NET INTEREST INCOME | 10,073 | 10,125 | 20,060 | 19,897 | ||||||||
PROVISION FOR LOAN LOSSES | 222 | 396 | 237 | 486 | ||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 9,851 | 9,729 | 19,823 | 19,411 | ||||||||
NON-INTEREST INCOME: | ||||||||||||
Trust income | 881 | 837 | 1,733 | 1,600 | ||||||||
Service charges and fees on deposit accounts | 1,312 | 1,243 | 2,534 | 2,436 | ||||||||
Net gain (loss) on sales of securities | 140 | 279 | 140 | 650 | ||||||||
Bank owned life insurance income | 297 | 191 | 486 | 360 | ||||||||
Gains from sales of loans | 63 | 61 | 102 | 102 | ||||||||
Other operating income | 97 | 139 | 225 | 244 | ||||||||
TOTAL NON-INTEREST INCOME | 2,790 | 2,750 | 5,220 | 5,392 | ||||||||
NON-INTEREST EXPENSE: | ||||||||||||
Salaries and employee benefits | 4,703 | 4,532 | 9,229 | 9,095 | ||||||||
Equipment expenses | 264 | 239 | 475 | 488 | ||||||||
Occupancy expense, net | 636 | 588 | 1,204 | 1,157 | ||||||||
State franchise tax | 286 | 276 | 570 | 557 | ||||||||
Marketing | 216 | 201 | 359 | 368 | ||||||||
Amortization of intangibles | 188 | 188 | 373 | 375 | ||||||||
FDIC insurance premiums | 108 | 162 | 212 | 327 | ||||||||
Contracted services | 375 | 223 | 623 | 450 | ||||||||
Other real estate owned | — | 356 | 5 | 385 | ||||||||
Other non-interest expense | 1,835 | 1,703 | 3,529 | 3,558 | ||||||||
TOTAL NON-INTEREST EXPENSE | 8,611 | 8,468 | 16,579 | 16,760 | ||||||||
INCOME BEFORE INCOME TAXES | 4,030 | 4,011 | 8,464 | 8,043 | ||||||||
PROVISION FOR INCOME TAXES | 1,027 | 1,043 | 2,215 | 2,111 | ||||||||
NET INCOME | $ | 3,003 | 2,968 | 6,249 | 5,932 | |||||||
Dividends declared per common share | $ | 0.16 | 0.16 | 0.32 | 0.32 | |||||||
Earnings per common share: | ||||||||||||
Basic | 0.30 | 0.30 | 0.62 | 0.60 | ||||||||
Diluted | 0.30 | 0.29 | 0.62 | 0.59 | ||||||||
Weighted average common shares outstanding: | ||||||||||||
Basic | 10,004,422 | 9,922,024 | 9,999,765 | 9,919,070 | ||||||||
Diluted | 10,011,312 | 9,943,797 | 10,007,192 | 9,971,900 |
Contacts
LCNB Corp.
Steve P. Foster, CEO & President, 800-344-BANK
Robert C. Haines II, Executive Vice President and CFO, 800-344-BANK