LCNB CORP - FORM 8-K - EX-99.2 - January 29, 2021

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Exhibit 99.2
LCNB Corp. and Subsidiaries
Financial Highlights
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended
Year Ended
12/31/2020
9/30/2020
6/30/2020
3/31/2020
12/31/2019
12/31/2020
12/31/2019
Condensed Income Statement
Interest income
$15,945 15,322 15,957 16,556 16,424 63,780 65,194 
Interest expense
1,432 1,793 1,959 2,378 2,577 7,562 10,788 
Net interest income
14,513 13,529 13,998 14,178 13,847 56,218 54,406 
Provision (credit) for loan losses
(151)976 16 1,173 (6)2,014 207 
Net interest income after provision
14,664 12,553 13,982 13,005 13,853 54,204 54,199 
Non-interest income
4,305 4,278 3,319 3,839 3,222 15,741 12,348 
Non-interest expense
11,944 11,653 11,116 11,072 11,007 45,785 43,522 
Income before income taxes
7,025 5,178 6,185 5,772 6,068 24,160 23,025 
Provision for income taxes
1,283 928 1,128 746 1,238 4,085 4,113 
Net income
$5,742 4,250 5,057 5,026 4,830 20,075 18,912 
Amort/Accret income on acquired loans
$186                                                                                                          294 667 400 1,328 1,281 
Amort/Accret expenses on acquired interest-bearing liabilities
$1 — 2 3 3 6 293 
Tax-equivalent net interest income
$14,577 13,594 14,066 14,254 13,937 56,491 54,852 
Per Share Data
Dividends per share
$0.19 0.18 0.18 0.18 0.18 0.73 0.69 
Basic earnings per common share
$0.44 0.33 0.39 0.39 0.37 1.55 1.44 
Diluted earnings per common share
$0.44 0.33 0.39 0.39 0.37 1.55 1.44 
Book value per share
$18.73 18.46 18.27 18.00 17.63 18.73 17.63 
Tangible book value per share
$13.93 13.66 13.47 13.18 12.78 13.93 12.78 
Weighted average common shares outstanding:
Basic
12,852,614 12,937,865 12,940,975 12,926,077 12,912,106 12,914,277 13,078,920 
Diluted
12,852,657 12,937,901 12,941,001 12,927,666 12,916,000 12,914,584 13,082,893 
Shares outstanding at period end
12,858,325 12,926,686 12,975,879 12,969,076 12,936,783 12,858,325 12,936,783 
Selected Financial Ratios
Return on average assets
1.31 %0.97 %1.19 %1.23 %1.17 %1.18 %1.15 %
Return on average equity
9.52 %7.08 %8.63 %8.75 %8.42 %8.49 %8.42 %
Return on average tangible equity12.83 %9.56 %11.74 %12.00 %11.63 %11.53 %11.72 %
Dividend payout ratio
43.18 %54.55 %46.15 %46.15 %48.65 %47.10 %47.92 %
Net interest margin (tax equivalent)
3.71 %3.47 %3.70 %3.92 %3.76 %3.70 %3.71 %
Efficiency ratio (tax equivalent)
63.26 %65.20 %63.94 %61.19 %64.15 %63.39 %64.76 %
Selected Balance Sheet Items
Cash and cash equivalents
$31,730 $24,485 42,736 24,795 20,765 
Debt and equity securities
248,624 199,044 194,883 183,123 219,791 
Loans:
Commercial and industrial
$100,254 $124,628 125,492 85,356 78,306 
Commercial, secured by real estate
843,230 843,943 833,286 829,461 804,953 
Residential real estate
309,692 327,689 334,349 318,009 322,533 
Consumer
36,917 36,504 32,859 28,955 25,232 
  Agricultural
10,100 8,920 11,071 10,519 11,509 
Other, including deposit overdrafts
363 403 283 436 1,193 
Deferred net origination fees
(1,135)(1,927)(1,902)(349)(275)                                                               
  Loans, gross
1,299,421 1,340,160 1,335,438 1,272,387 1,243,451 
Less allowance for loan losses
5,728 5,974 5,016 5,008 4,045 
  Loans, net
$1,293,693 1,334,186 1,330,422 1,267,379 1,239,406 
Total earning assets
$1,562,392 1,547,538 1,554,537 1,462,485 1,466,988 
Total assets
1,745,884 1,725,615 1,735,332 1,636,280 1,639,308 
Total deposits
1,455,423 1,430,394 1,438,921 1,345,872 1,348,280 


Three Months Ended
Year Ended
12/31/20209/30/20206/30/20203/31/202012/31/201912/31/202012/31/2019
Selected Balance Sheet Items, continued
Long-term debt
22,000 31,999 33,998 35,996 40,994 
Total shareholders’ equity
240,825 238,585 237,047 233,478 228,048 
Equity to assets ratio
13.79 %13.83 %13.66 %14.27 %13.91 %
Loans to deposits ratio
89.28 %93.69 %92.81 %94.54 %92.22 %
Tangible common equity (TCE)
$179,127 176,624 174,823 170,994 165,304 
Tangible common assets (TCA)
1,684,186 1,663,654 1,673,108 1,573,796 1,576,564 
TCE/TCA
10.64 %10.62 %10.45 %10.87 %10.49 %
Selected Average Balance Sheet Items
Cash and cash equivalents
$49,273 42,661 46,292 25,101 26,501 40,825 27,321 
Debt and equity securities
218,816 197,788 182,371 204,912 231,115 201,012 247,569 
Loans
$1,313,892 1,339,608 1,318,753 1,252,554 1,230,845 1,306,314 1,221,375 
Less allowance for loan losses
5,920 5,250 4,998 3,938 4,076 5,029 4,056 
Net loans
$1,307,972 1,334,358 1,313,755 1,248,616 1,226,769 1,301,285 1,217,319 
Total earning assets
$1,561,392 1,558,886 1,528,610 1,462,946 1,469,469 1,528,134 1,477,333 
Total assets
1,742,947 1,741,998 1,704,303 1,638,486 1,643,793 1,706,924 1,642,591 
Total deposits
1,447,217 1,445,573 1,412,082 1,346,770 1,352,101 1,413,093 1,351,036 
Short-term borrowings
— — 82 1,415 622 372 6,064 
Long-term debt
30,803 33,020 34,964 38,325 41,742 34,265 42,733 
Total shareholders’ equity
239,881 238,990 235,587 231,058 227,595 236,396 224,639 
Equity to assets ratio
13.76 %13.72 %13.82 %14.10 %13.85 %13.85 %13.62 %
Loans to deposits ratio
90.79 %92.67 %93.39 %93.00 %91.03 %92.44 %90.19 %
Asset Quality
Net charge-offs
$95 18 8 210 115 331 207 
Other real estate owned
— — — — 197 — 197 
Non-accrual loans
3,718 4,110 3,876 2,829 3,210 3,718 3,210 
Loans past due 90 days or more and still accruing
— 94 38 39 — — — 
Total nonperforming loans
$3,718 4,204 3,914 2,868 3,210 3,718 3,210 
Net charge-offs to average loans
0.03 %0.01 %0.00 %0.07 %0.04 %0.03 %0.02 %
Allowance for loan losses to total loans
0.44 %0.45 %0.38 %0.39 %0.33 %0.44 %0.33 %
Nonperforming loans to total loans
0.29 %0.31 %0.29 %0.23 %0.26 %0.29 %0.26 %
Nonperforming assets to total assets
0.21 %0.24 %0.23 %0.18 %0.21 %0.21 %0.21 %
Assets Under Management
LCNB Corp. total assets
$1,745,884 1,725,615 1,735,332 1,636,280 1,639,308 
Trust and investments (fair value)
628,414 524,502 516,076 455,974 435,664 
Mortgage loans serviced
137,188 120,546 100,189 94,805 93,596 
Cash management
116,792 119,520 116,615 77,471 75,948 
Brokerage accounts (fair value)
292,953 267,307 255,276 235,278 268,059 
Total assets managed
$2,921,231 2,757,490 2,723,488 2,499,808 2,512,575 


LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS

(Dollars in thousands)
December 31, 2020 (Unaudited)December 31, 2019
ASSETS:
Cash and due from banks$17,383 17,019 
Interest-bearing demand deposits14,347 3,746 
Total cash and cash equivalents31,730 20,765 
Investment securities:  
Equity securities with a readily determinable fair value, at fair value2,389 2,312 
Equity securities without a readily determinable fair value, at cost2,099 2,099 
Debt securities, available-for-sale, at fair value209,471 178,000 
Debt securities, held-to-maturity, at cost24,810 27,525 
Federal Reserve Bank stock, at cost4,652 4,652 
Federal Home Loan Bank stock, at cost5,203 5,203 
Loans, net1,293,693 1,239,406 
Premises and equipment, net35,376 34,787 
Operating leases right of use asset6,274 5,444 
Goodwill59,221 59,221 
Core deposit and other intangibles3,453 4,006 
Bank owned life insurance42,149 41,667 
Interest receivable8,337 3,926 
Other assets17,027 10,295 
TOTAL ASSETS$1,745,884 1,639,308 
LIABILITIES:  
Deposits:  
Noninterest-bearing$455,073 354,391 
Interest-bearing1,000,350 993,889 
Total deposits1,455,423 1,348,280 
Long-term debt22,000 40,994 
Operating lease liabilities6,371 5,446 
Accrued interest and other liabilities21,265 16,540 
TOTAL LIABILITIES1,505,059 1,411,260 
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 14,090,038 and 14,111,810 shares at December 31, 2020 and 2019, respectively; outstanding 12,858,325 and 12,936,783 shares at December 31, 2020 and 2019, respectively142,443 141,791 
Retained earnings115,058 104,431 
Treasury shares at cost, 1,231,713 and 1,175,027 shares at December 31,2020 and 2019, respectively(20,719)(18,847)
Accumulated other comprehensive income, net of taxes4,043 673 
TOTAL SHAREHOLDERS' EQUITY240,825 228,048 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$1,745,884 1,639,308 




LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended December 31, Year Ended 
December 31,
 2020201920202019
INTEREST INCOME:
Interest and fees on loans$14,839 14,937 59,267 59,009 
Dividends on equity securities with a readily determinable fair value14 15 54 62 
Dividends on equity securities without a readily determinable fair value4 17 37 65 
Interest on debt securities, taxable666 881 2,916 3,601 
Interest on debt securities, non-taxable239 337 1,027 1,677 
Interest on interest-bearing time deposits— — — 11 
Other investments183 237 479 769 
TOTAL INTEREST INCOME15,945 16,424 63,780 65,194 
INTEREST EXPENSE:    
Interest on deposits1,218 2,301 6,634 9,526 
Interest on short-term borrowings— 3 7 227 
Interest on long-term debt214 273 921 1,035 
TOTAL INTEREST EXPENSE1,432 2,577 7,562 10,788 
NET INTEREST INCOME14,513 13,847 56,218 54,406 
PROVISION (CREDIT) FOR LOAN LOSSES(151)(6)2,014 207 
NET INTEREST INCOME AFTER PROVISION (CREDIT) FOR LOAN LOSSES14,664 13,853 54,204 54,199 
NON-INTEREST INCOME:    
Fiduciary income1,430 1,139 5,009 4,354 
Service charges and fees on deposit accounts1,444 1,454 5,482 5,875 
Net gains (losses) on sales of debt securities— (4)221 (41)
Bank owned life insurance income278 289 1,441 943 
Gains from sales of loans861 121 2,297 328 
Other operating income292 223 1,291 889 
TOTAL NON-INTEREST INCOME4,305 3,222 15,741 12,348 
NON-INTEREST EXPENSE:    
Salaries and employee benefits6,899 6,512 27,178 25,320 
Equipment expenses460 343 1,377 1,209 
Occupancy expense, net730 703 2,875 2,961 
State financial institutions tax428 362 1,708 1,669 
Marketing348 310 1,254 1,319 
Amortization of intangibles263 263 1,046 1,043 
FDIC insurance premiums, net114 — 256 225 
Contracted services509 471 1,821 1,865 
Merger-related expenses— — — 114 
Other non-interest expense2,193 2,043 8,270 7,797 
TOTAL NON-INTEREST EXPENSE11,944 11,007 45,785 43,522 
INCOME BEFORE INCOME TAXES7,025 6,068 24,160 23,025 
PROVISION FOR INCOME TAXES1,283 1,238 4,085 4,113 
NET INCOME$5,742 4,830 20,075 18,912 
Dividends declared per common share$0.19 0.18 0.73 0.69 
Earnings per common share:   
Basic0.44 0.37 1.55 1.44 
Diluted0.44 0.37 1.55 1.44 
Weighted average common shares outstanding:
Basic12,852,614 12,912,106 12,914,277 13,078,920 
Diluted12,852,657 12,916,000 12,914,584 13,082,893 


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