LCNB Corp. Reports Record Financial Results for the Three and Six Months Ended June 30, 2022

Loans, Net Increased 4.2% Year-over-Year to $1.37 Billion

Total Deposits Increased 5.2% Year-over-Year to $1.66 Billion

Credit Quality Remains Strong with Total Nonperforming Loans Declining to $0.6 Million, or 0.04% of Total Loans

Second Quarter Earnings Per Share Increased 19.5% to a Quarterly Record of $0.49 Per Diluted Share

LCNB Corp. ("LCNB") (NASDAQ: LCNB) today announced financial results for the three and six months ended June 30, 2022.

Commenting on the financial results, LCNB President and Chief Executive Officer Eric Meilstrup said, “LCNB produced strong financial results during the second quarter. Second quarter basic and diluted earnings per share of $0.49 were a quarterly record and benefited from a 5.6% increase in net interest income, an $889,000 gain from the sale of other real estate owned, and our share repurchase program. Solid core profitability combined with our repurchase program also drove an improvement in second quarter return on tangible equity, which grew to 15.52% for the three months ended June 30, 2022.”

Mr. Meilstrup continued, “We believe we are well positioned to navigate the fluid business environment because of our historically strong asset quality, diversified sources of revenue, and the value of our community-oriented financial services. Supporting our commercial, retail, and wealth customers and expanding our diverse financial services to more customers and markets throughout the greater Cincinnati, Dayton, Chillicothe, and Columbus markets are important components of our growth initiatives. Our personal and business banking services, combined with our Wealth Management offerings, provide a powerful platform suite of financial products to our local communities. I am encouraged by the progress we are making attracting more customers to LCNB and growing our balance sheet.”

"We also remain committed to returning excess capital to our shareholders through our dividend policy and share buyback program. Year-to-date, we have retired approximately 8.7% of our common stock through our share repurchase program. In addition, LCNB’s year-to-date dividend payout ratio of nearly 46% and annualized dividend yield of approximately 5% reflects management and the Board’s desire to return a meaningful amount of our earnings back to our shareholders,” concluded Mr. Meilstrup.

Income Statement

Net income for the 2022 second quarter was $5,618,000, compared to $5,290,000 for the same period last year. Earnings per basic and diluted share for the 2022 second quarter were $0.49, compared to $0.41 for the same period last year. Net income for the six-month period ended June 30, 2022, was $10,141,000, compared to $10,530,000 for the same period last year. Earnings per basic and diluted share for the six-month period ended June 30, 2022, were $0.87, compared to $0.82 for the same period last year.

Net interest income for the three months ended June 30, 2022, was $15,167,000, compared to $14,369,000 for the comparable period in 2021. Net interest income for the six-month period ended June 30, 2022, increased $649,000 to $29,390,000, as compared to $28,741,000 in the same period last year. Favorably contributing to the variances for both the three- and six- month periods were overall growth in the taxable debt securities and loan portfolios and decreases in the average rates paid on deposits, aided by a shift from higher cost certificates of deposit to lower cost demand and savings products.

Non-interest income for the three months ended June 30, 2022, decreased $786,000, or by 18.2% to $3,528,000, compared to $4,314,000 for the same period last year. For the six months ended June 30, 2022, non-interest income decreased $701,000, or by 9.0% to $7,078,000, compared to $7,779,000 for the same period last year. Non-interest income for the three and six months ended June 30, 2021, included a one-time refund on the Company’s Ohio Financial Institutions Taxes, which was included in other operating income. The primary drivers for the remainder of the second quarter decrease included decreased fiduciary income, decreased gains from sales of loans, and net unrealized losses recognized on LCNB’s equity securities investment portfolio. Drivers for the remainder of the first half year-over-year decrease in non-interest income included net unrealized losses recognized on LCNB’s equity securities investment portfolio.

Non-interest expense for the three months ended June 30, 2022, was $739,000 less than the comparable period in 2021 primarily due to an $889,000 gain from the sale of other real estate owned during the 2022 second quarter, which was partially offset by a $140,000 impairment charge included in other operating expense that was associated with the sale of the Company’s Colerain Office building. For the first half ended June 30, 2022, non-interest expense increased $19,000 from the comparable period in 2021.

Capital Allocation

During the 2022 second quarter, LCNB invested $0.5 million to repurchase 33,035 shares of its outstanding stock at an average price of $15.48 per share. Year-to-date, LCNB invested $21.5 million to repurchase 1,084,723 shares of its outstanding stock at an average price of $19.87 per share. This equates to approximately 8.7% of the Company’s outstanding common stock prior to the repurchase. At June 30, 2022, LCNB had 466,965 shares remaining under its May 27, 2022, share repurchase program.

For the second quarter ended June 30, 2022, LCNB paid $0.20 per share in dividends, a 5.3% increase from $0.19 per share for the second quarter last year. Year-to-date, LCNB paid $0.40 per share in dividends, compared to $0.38 per share for the first half last year.

Balance Sheet

Total assets at June 30, 2022 increased 3.0% to a record $1.91 billion from $1.86 billion at June 30, 2021. Net loans at June 30, 2022, increased 4.2% to $1.37 billion, compared to $1.31 billion at June 30, 2021.

Total deposits at June 30, 2022 increased 5.2% to a record $1.66 billion, compared to $1.58 billion at June 30, 2021, as LCNB continues to experience year-over-year growth in both interest-bearing and non-interest-bearing accounts.

Long-term debt at June 30, 2022 was $15 million greater than at December 31, 2021 due to the restructuring of a $20 million short-term line of credit into a $15 million three year term loan and a $5 million short-term line of credit.

Asset Quality

For the 2022 second quarter, LCNB recorded a $377,000 provision for loan losses, compared to a credit of $15,000 for the 2021 second quarter. For the six months ended June 30, 2022, LCNB recorded a provision for loan losses of $426,000, compared to a credit for loan losses of $67,000 for the six months ended June 30, 2021. The $493,000 year-over-year increase in the provision for loan losses was partially due to higher year-over-year net charge-offs and additional provisioning for the increase in volume of the commercial real estate loan portfolio.

Net charge-offs for the 2022 second quarter were $74,000, compared to $12,000 for the same period last year. For the 2022 six-month period, net charge-offs were $99,000 or 0.01% of average loans, compared to $9,000 for the 2021 six-month period.

Total nonperforming loans, which includes non-accrual loans and loans past due 90 days or more and still accruing interest, decreased $2,739,000 from $3,338,000 or 0.25% of total loans at June 30, 2021, to $599,000 or 0.04% of total loans at June 30, 2022. The decrease in nonperforming loans was primarily a result of the completion of the foreclosure process on a commercial real estate loan and the reclassification of that loan to other real estate owned. Nonperforming assets to total assets was 0.03% at June 30, 2022, compared to 0.18% at June 30, 2021.

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. 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 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 LCNB’s 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 LCNB’s Annual Report on Form 10-K for the year ended December 31, 2021, 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 LCNB’s business and operations. Additionally, LCNB’s 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. the significant risks and uncertainties for LCNB's business, results of operations and financial condition, as well as its regulatory capital and liquidity ratios and other regulatory requirements, caused by the COVID-19 pandemic, which will depend on several factors, including the scope and duration of the pandemic, its influence on financial markets, the effectiveness of LCNB's work from home arrangements and staffing levels in operational facilities, the impact of market participants on which LCNB relies, and actions taken by governmental authorities and other third parties in response to the pandemic;
  3. the disruption of global, national, state, and local economies associated with the COVID-19 pandemic and the Russia/Ukraine conflict, which could affect LCNB's liquidity and capital positions, impair the ability of our borrowers to repay outstanding loans, impair collateral values, and further increase the allowance for credit losses;
  4. LCNB’s ability to integrate future acquisitions may be unsuccessful, or may be more difficult, time-consuming, or costly than expected;
  5. LCNB may incur increased loan charge-offs in the future;
  6. LCNB may face competitive loss of customers;
  7. changes in the interest rate environment, which may include continued interest rate increases, may have results on LCNB’s operations materially different from those anticipated by LCNB’s market risk management functions;
  8. changes in general economic conditions and increased competition could adversely affect LCNB’s operating results;
  9. 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;
  10. LCNB may experience difficulties growing loan and deposit balances;
  11. 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;
  12. deterioration in the financial condition of the U.S. banking system may impact the valuations of investments LCNB has made in the securities of other financial institutions resulting in either actual losses or other than temporary impairments on such investments;
  13. difficulties with technology or data security breaches, including cyberattacks, that could negatively affect LCNB's ability to conduct business and its relationships with customers, vendors, and others;
  14. adverse weather events and natural disasters and global and/or national epidemics; and
  15. government intervention in the U.S. financial system, including the effects of recent legislative, tax, accounting and regulatory actions and reforms, including the Coronavirus Aid, Relief, and Economic Security ("CARES") Act, 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, and the Tax Cuts and Jobs Act.

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.

LCNB Corp. and Subsidiaries

Financial Highlights

(Dollars in thousands, except per share amounts)

(Unaudited)

 

 

Three Months Ended

 

Six Months Ended

 

6/30/2022

 

3/31/2022

 

12/31/2021

 

9/30/2021

 

6/30/2021

 

6/30/2022

 

6/30/2021

Condensed Income Statement

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

$

16,208

 

 

15,122

 

 

15,189

 

 

 

15,024

 

 

15,429

 

 

31,330

 

 

30,964

 

Interest expense

 

1,041

 

 

899

 

 

879

 

 

 

951

 

 

1,060

 

 

1,940

 

 

2,223

 

Net interest income

 

15,167

 

 

14,223

 

 

14,310

 

 

 

14,073

 

 

14,369

 

 

29,390

 

 

28,741

 

Provision (credit) for loan losses

 

377

 

 

49

 

 

(508

)

 

 

306

 

 

(15

)

 

426

 

 

(67

)

Net interest income after provision (credit) for loan losses

 

14,790

 

 

14,174

 

 

14,818

 

 

 

13,767

 

 

14,384

 

 

28,964

 

 

28,808

 

Non-interest income

 

3,528

 

 

3,550

 

 

4,347

 

 

 

4,106

 

 

4,314

 

 

7,078

 

 

7,779

 

Non-interest expense

 

11,469

 

 

12,250

 

 

12,311

 

 

 

12,029

 

 

12,208

 

 

23,719

 

 

23,700

 

Income before income taxes

 

6,849

 

 

5,474

 

 

6,854

 

 

 

5,844

 

 

6,490

 

 

12,323

 

 

12,887

 

Provision for income taxes

 

1,231

 

 

951

 

 

1,227

 

 

 

1,027

 

 

1,200

 

 

2,182

 

 

2,357

 

Net income

$

5,618

 

 

4,523

 

 

5,627

 

 

 

4,817

 

 

5,290

 

 

10,141

 

 

10,530

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Income Statement Information

 

 

 

 

 

 

 

 

 

 

 

 

Amort/Accret income on acquired loans

$

61

 

 

66

 

 

116

 

 

 

132

 

 

216

 

 

127

 

 

465

 

Tax-equivalent net interest income

$

15,217

 

 

14,273

 

 

14,365

 

 

 

14,129

 

 

14,427

 

 

29,490

 

 

28,858

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Data

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends per share

$

0.20

 

 

0.20

 

 

0.20

 

 

 

0.19

 

 

0.19

 

 

0.40

 

 

0.38

 

Basic earnings per common share

$

0.49

 

 

0.38

 

 

0.45

 

 

 

0.39

 

 

0.41

 

 

0.87

 

 

0.82

 

Diluted earnings per common share

$

0.49

 

 

0.38

 

 

0.45

 

 

 

0.39

 

 

0.41

 

 

0.87

 

 

0.82

 

Book value per share

$

17.84

 

 

18.14

 

 

19.22

 

 

 

19.17

 

 

18.99

 

 

17.84

 

 

18.99

 

Tangible book value per share

$

12.53

 

 

12.84

 

 

14.33

 

 

 

14.28

 

 

14.15

 

 

12.53

 

 

14.15

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

11,337,805

 

 

11,818,614

 

 

12,370,702

 

 

 

12,455,276

 

 

12,743,726

 

 

11,576,873

 

 

12,769,131

 

Diluted

 

11,337,805

 

 

11,818,614

 

 

12,370,702

 

 

 

12,455,276

 

 

12,743,726

 

 

11,576,873

 

 

12,769,146

 

Shares outstanding at period end

 

11,374,515

 

 

11,401,503

 

 

12,414,956

 

 

 

12,434,084

 

 

12,634,845

 

 

11,374,515

 

 

12,634,845

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

1.18

%

 

0.96

%

 

1.18

%

 

 

1.02

%

 

1.15

%

 

1.07

%

 

1.17

%

Return on average equity

 

10.96

%

 

8.13

%

 

9.33

%

 

 

7.93

%

 

8.78

%

 

9.48

%

 

8.79

%

Return on average tangible common equity

 

15.52

%

 

11.11

%

 

12.51

%

 

 

10.62

%

 

11.76

%

 

13.18

%

 

11.79

%

Dividend payout ratio

 

40.82

%

 

52.63

%

 

44.44

%

 

 

48.72

%

 

46.34

%

 

45.98

%

 

46.34

%

Net interest margin (tax equivalent)

 

3.54

%

 

3.35

%

 

3.34

%

 

 

3.32

%

 

3.51

%

 

3.45

%

 

3.57

%

Efficiency ratio (tax equivalent)

 

61.18

%

 

68.73

%

 

65.79

%

 

 

65.96

%

 

65.14

%

 

64.86

%

 

64.69

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Balance Sheet Items

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

31,815

 

 

19,941

 

 

18,136

 

 

 

23,852

 

 

22,909

 

 

 

 

 

Debt and equity securities

 

337,952

 

 

330,715

 

 

345,649

 

 

 

352,066

 

 

349,199

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

$

114,971

 

 

105,805

 

 

101,792

 

 

 

91,246

 

 

97,240

 

 

 

 

 

Commercial, secured by real estate

 

905,703

 

 

906,140

 

 

889,108

 

 

 

862,202

 

 

836,085

 

 

 

 

 

Residential real estate

 

315,930

 

 

328,034

 

 

334,547

 

 

 

343,318

 

 

341,447

 

 

 

 

 

Consumer

 

30,308

 

 

32,445

 

 

34,190

 

 

 

35,349

 

 

35,257

 

 

 

 

 

Agricultural

 

7,412

 

 

7,980

 

 

10,647

 

 

 

8,852

 

 

8,765

 

 

 

 

 

Other, including deposit overdrafts

 

81

 

 

45

 

 

122

 

 

 

247

 

 

369

 

 

 

 

 

Deferred net origination fees

 

(928

)

 

(928

)

 

(961

)

 

 

(1,055

)

 

(1,398

)

 

 

 

 

Loans, gross

 

1,373,477

 

1,379,521

 

 

1,369,445

 

 

 

1,340,159

 

 

1,317,765

 

 

 

 

 

Less allowance for loan losses

 

5,833

 

 

5,530

 

 

5,506

 

 

 

5,828

 

 

5,652

 

 

 

 

 

Loans, net

$

1,367,644

 

 

1,373,991

 

 

1,363,939

 

 

 

1,334,331

 

 

1,312,113

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

6/30/2022

 

3/31/2022

 

12/31/2021

 

9/30/2021

 

6/30/2021

 

6/30/2022

 

6/30/2021

Selected Balance Sheet Items, continued

 

 

 

 

 

 

 

 

 

 

 

 

Total earning assets

$

1,722,853

 

 

1,712,115

 

 

1,716,420

 

 

 

1,695,281

 

 

1,671,462

 

 

 

 

 

Total assets

 

1,912,627

 

 

1,899,630

 

 

1,903,629

 

 

 

1,884,252

 

 

1,856,670

 

 

 

 

 

Total deposits

 

1,658,825

 

 

1,636,606

 

 

1,628,819

 

 

 

1,603,203

 

 

1,577,345

 

 

 

 

 

Short-term borrowings

 

5,000

 

 

24,746

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt

 

25,000

 

 

10,000

 

 

10,000

 

 

 

15,000

 

 

15,000

 

 

 

 

 

Total shareholders’ equity

 

202,960

 

 

206,875

 

 

238,604

 

 

 

238,419

 

 

239,952

 

 

 

 

 

Equity to assets ratio

 

10.61

%

 

10.89

%

 

12.53

%

 

 

12.65

%

 

12.92

%

 

 

 

 

Loans to deposits ratio

 

82.80

%

 

84.29

%

 

84.08

%

 

 

83.59

%

 

83.54

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity (TCE)

$

142,557

 

 

146,360

 

 

177,949

 

 

 

177,501

 

 

178,771

 

 

 

 

 

Tangible common assets (TCA)

 

1,852,224

 

 

1,839,115

 

 

1,842,974

 

 

 

1,823,334

 

 

1,795,489

 

 

 

 

 

TCE/TCA

 

7.70

%

 

7.96

%

 

9.66

%

 

 

9.73

%

 

9.96

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Average Balance Sheet Items

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

28,787

 

 

32,826

 

 

29,614

 

 

 

34,557

 

 

45,414

 

 

30,788

 

 

41,385

 

Debt and equity securities

 

338,149

 

 

340,666

 

 

348,150

 

 

 

356,214

 

 

312,596

 

 

339,432

 

 

286,517

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

$

1,375,710

 

 

1,376,926

 

 

1,351,762

 

 

 

1,321,629

 

 

1,328,760

 

 

1,376,315

 

 

1,321,323

 

Less allowance for loan losses

 

5,532

 

 

5,503

 

 

5,843

 

 

 

5,567

 

 

5,678

 

 

5,517

 

 

5,696

 

Net loans

$

1,370,178

 

 

1,371,423

 

 

1,345,919

 

 

 

1,316,062

 

 

1,323,082

 

 

1,370,798

 

 

1,315,627

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total earning assets

$

1,722,503

 

 

1,727,335

 

 

1,708,392

 

 

 

1,688,589

 

 

1,666,126

 

 

1,724,938

 

 

1,628,066

 

Total assets

 

1,912,574

 

 

1,917,226

 

 

1,896,530

 

 

 

1,879,314

 

 

1,852,035

 

 

1,914,767

 

 

1,813,888

 

Total deposits

 

1,655,389

 

 

1,646,627

 

 

1,615,020

 

 

 

1,595,773

 

 

1,570,070

 

 

1,651,032

 

 

1,529,339

 

Short-term borrowings

 

18,263

 

 

12,503

 

 

893

 

 

 

1,320

 

 

716

 

 

15,399

 

 

530

 

Long-term debt

 

12,637

 

 

10,000

 

 

14,402

 

 

 

15,000

 

 

15,571

 

 

11,326

 

 

17,619

 

Total shareholders’ equity

 

205,645

 

 

225,725

 

 

239,174

 

 

 

240,976

 

 

241,651

 

 

215,629

 

 

241,585

 

Equity to assets ratio

 

10.75

%

 

11.77

%

 

12.61

%

 

 

12.82

%

 

13.05

%

 

11.26

%

 

13.32

%

Loans to deposits ratio

 

83.10

%

 

83.62

%

 

83.70

%

 

 

82.82

%

 

84.63

%

 

83.36

%

 

86.40

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs (recoveries)

$

74

 

 

25

 

 

(186

)

 

$

130

 

 

12

 

 

99

 

 

9

 

Other real estate owned

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans

$

599

 

 

1,455

 

 

1,481

 

 

 

2,629

 

 

3,338

 

 

599

 

 

3,338

 

Loans past due 90 days or more and still accruing

 

 

 

 

 

56

 

 

 

13

 

 

 

 

 

 

 

Total nonperforming loans

$

599

 

 

1,455

 

 

1,537

 

 

$

2,642

 

 

3,338

 

 

599

 

 

3,338

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs (recoveries) to average loans

 

0.02

%

 

0.01

%

 

(0.05

) %

 

 

0.04

%

 

0.00

%

 

0.01

%

 

0.00

%

Allowance for loan losses to total loans

 

0.42

%

 

0.40

%

 

0.40

%

 

 

0.43

%

 

0.43

%

 

0.42

%

 

0.43

%

Nonperforming loans to total loans

 

0.04

%

 

0.11

%

 

0.11

%

 

 

0.20

%

 

0.25

%

 

0.04

%

 

0.25

%

Nonperforming assets to total assets

 

0.03

%

 

0.08

%

 

0.08

%

 

 

0.14

%

 

0.18

%

 

0.03

%

 

0.18

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets Under Management

 

 

 

 

 

 

 

 

 

 

 

 

 

LCNB Corp. total assets

$

1,912,627

 

 

1,899,630

 

 

1,903,629

 

 

 

1,884,252

 

 

1,856,670

 

 

 

 

 

Trust and investments (fair value)

 

625,984

 

 

700,353

 

 

722,093

 

 

 

713,936

 

 

701,838

 

 

 

 

 

Mortgage loans serviced

 

153,557

 

 

152,271

 

 

149,382

 

 

 

140,147

 

 

126,924

 

 

 

 

 

Cash management

 

38,914

 

 

75,302

 

 

34,009

 

 

 

72,622

 

 

80,177

 

 

 

 

 

Brokerage accounts (fair value)

 

303,663

 

 

326,290

 

 

334,670

 

 

 

319,495

 

 

314,491

 

 

 

 

 

Total assets managed

$

3,034,745

 

 

3,153,846

 

 

3,143,783

 

 

 

3,130,452

 

 

3,080,100

 

 

 

 

 

LCNB CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

(Dollars in thousands)

 

 

 

 

 

June 30, 2022

(Unaudited)

 

December 31,

2021

ASSETS:

 

 

 

Cash and due from banks

$

20,391

 

 

16,810

 

Interest-bearing demand deposits

 

11,424

 

 

1,326

 

Total cash and cash equivalents

 

31,815

 

 

18,136

 

Investment securities:

 

 

 

Equity securities with a readily determinable fair value, at fair value

 

2,250

 

 

2,546

 

Equity securities without a readily determinable fair value, at cost

 

2,099

 

 

2,099

 

Debt securities, available-for-sale, at fair value

 

301,232

 

 

308,177

 

Debt securities, held-to-maturity, at cost

 

22,516

 

 

22,972

 

Federal Reserve Bank stock, at cost

 

4,652

 

 

4,652

 

Federal Home Loan Bank stock, at cost

 

5,203

 

 

5,203

 

Loans, net

 

1,367,644

 

 

1,363,939

 

Premises and equipment, net

 

34,519

 

 

35,385

 

Operating leases right of use asset

 

6,101

 

 

6,357

 

Goodwill

 

59,221

 

 

59,221

 

Core deposit and other intangibles

 

2,178

 

 

2,473

 

Bank owned life insurance

 

43,758

 

 

43,224

 

Interest receivable

 

7,448

 

 

7,999

 

Other assets

 

21,991

 

 

21,246

 

TOTAL ASSETS

$

1,912,627

 

 

1,903,629

 

 

 

 

 

LIABILITIES:

 

 

 

Deposits:

 

 

 

Noninterest-bearing

$

499,124

 

 

501,531

 

Interest-bearing

 

1,159,701

 

 

1,127,288

 

Total deposits

 

1,658,825

 

 

1,628,819

 

Short-term borrowings

 

5,000

 

 

 

Long-term debt

 

25,000

 

 

10,000

 

Operating lease liabilities

 

6,227

 

 

6,473

 

Accrued interest and other liabilities

 

14,615

 

 

19,733

 

TOTAL LIABILITIES

 

1,709,667

 

 

1,665,025

 

 

 

 

 

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 14,258,074 and 14,213,792 shares at June 30, 2022 and December 31, 2021, respectively; outstanding 11,374,515 and 12,414,956 shares at June 30, 2022 and December 31, 2021, respectively

 

143,635

 

 

143,130

 

Retained earnings

 

131,894

 

 

126,312

 

Treasury shares at cost, 2,883,559 and 1,798,836 shares at June 30, 2022 and December 31, 2021, respectively

 

(50,629

)

 

(29,029

)

Accumulated other comprehensive loss, net of taxes

 

(21,940

)

 

(1,809

)

TOTAL SHAREHOLDERS' EQUITY

 

202,960

 

 

238,604

 

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

1,912,627

 

 

1,903,629

 

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,

 

2022

 

2021

 

2022

 

2021

INTEREST INCOME:

 

 

 

 

 

 

 

Interest and fees on loans

$

14,548

 

 

14,108

 

 

28,334

 

 

28,643

 

Dividends on equity securities with a readily determinable fair value

 

14

 

 

13

 

 

26

 

 

26

 

Dividends on equity securities without a readily determinable fair value

 

5

 

 

5

 

 

10

 

 

11

 

Interest on debt securities, taxable

 

1,254

 

 

905

 

 

2,349

 

 

1,623

 

Interest on debt securities, non-taxable

 

188

 

 

218

 

 

377

 

 

442

 

Other investments

 

199

 

 

180

 

 

234

 

 

219

 

TOTAL INTEREST INCOME

 

16,208

 

 

15,429

 

 

31,330

 

 

30,964

 

INTEREST EXPENSE:

 

 

 

 

 

 

 

Interest on deposits

 

775

 

 

945

 

 

1,514

 

 

1,973

 

Interest on short-term borrowings

 

163

 

 

1

 

 

249

 

 

2

 

Interest on long-term debt

 

103

 

 

114

 

 

177

 

 

248

 

TOTAL INTEREST EXPENSE

 

1,041

 

 

1,060

 

 

1,940

 

 

2,223

 

NET INTEREST INCOME

 

15,167

 

 

14,369

 

 

29,390

 

 

28,741

 

PROVISION (CREDIT) FOR LOAN LOSSES

 

377

 

 

(15

)

 

426

 

 

(67

)

NET INTEREST INCOME AFTER PROVISION (CREDIT) FOR LOAN LOSSES

 

14,790

 

 

14,384

 

 

28,964

 

 

28,808

 

NON-INTEREST INCOME:

 

 

 

 

 

 

 

Fiduciary income

 

1,643

 

 

1,735

 

 

3,338

 

 

3,264

 

Service charges and fees on deposit accounts

 

1,546

 

 

1,519

 

 

2,952

 

 

2,885

 

Bank owned life insurance income

 

269

 

 

269

 

 

534

 

 

536

 

Gains from sales of loans

 

64

 

 

151

 

 

188

 

 

194

 

Other operating income

 

6

 

 

640

 

 

66

 

 

900

 

TOTAL NON-INTEREST INCOME

 

3,528

 

 

4,314

 

 

7,078

 

 

7,779

 

NON-INTEREST EXPENSE:

 

 

 

 

 

 

 

Salaries and employee benefits

 

7,014

 

 

7,111

 

 

14,229

 

 

13,544

 

Equipment expenses

 

428

 

 

443

 

 

836

 

 

811

 

Occupancy expense, net

 

735

 

 

729

 

 

1,510

 

 

1,523

 

State financial institutions tax

 

437

 

 

437

 

 

873

 

 

881

 

Marketing

 

368

 

 

357

 

 

630

 

 

625

 

Amortization of intangibles

 

112

 

 

260

 

 

252

 

 

517

 

FDIC insurance premiums, net

 

134

 

 

123

 

 

260

 

 

236

 

Contracted services

 

679

 

 

623

 

 

1,289

 

 

1,163

 

Other real estate owned, net

 

(879

)

 

1

 

 

(879

)

 

2

 

Other non-interest expense

 

2,441

 

 

2,124

 

 

4,719

 

 

4,398

 

TOTAL NON-INTEREST EXPENSE

 

11,469

 

 

12,208

 

 

23,719

 

 

23,700

 

INCOME BEFORE INCOME TAXES

 

6,849

 

 

6,490

 

 

12,323

 

 

12,887

 

PROVISION FOR INCOME TAXES

 

1,231

 

 

1,200

 

 

2,182

 

 

2,357

 

NET INCOME

$

5,618

 

 

5,290

 

 

10,141

 

 

10,530

 

 

 

 

 

 

 

 

 

Dividends declared per common share

$

0.20

 

 

0.19

 

 

0.40

 

 

0.38

 

Earnings per common share:

 

 

 

 

 

 

 

Basic

 

0.49

 

 

0.41

 

 

0.87

 

 

0.82

 

Diluted

 

0.49

 

 

0.41

 

 

0.87

 

 

0.82

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

Basic

 

11,337,805

 

 

12,743,726

 

 

11,576,873

 

 

12,769,131

 

Diluted

 

11,337,805

 

 

12,743,726

 

 

11,576,873

 

 

12,769,146

 

 

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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