LCNB Corp. Reports Financial Results for the Three and Six Months Ended June 30, 2020

LEBANON, Ohio--()--LCNB Corp. ("LCNB") (NASDAQ: LCNB) today announced net income of $5,057,000 (total basic and diluted earnings per share of $0.39) and $10,083,000 (total basic and diluted earnings per share of $0.78) for the three and six months ended June 30, 2020, respectively. This compares to net income of $4,728,000 (total basic and diluted earnings per share of $0.36) and $9,355,000 (total basic and diluted earnings per share of $0.71) for the same three and six month periods in 2019.

Commenting on the financial results, LCNB President and Chief Executive Officer Eric Meilstrup said, "We are pleased to report strong financial results for the second quarter and first half of 2020, despite the challenging conditions resulting from the COVID-19 pandemic. Gross loans increased $92.0 million or 7.4% since December 31, 2019, including $45.5 million in Paycheck Protection Program ("PPP") loans. Total assets increased $96.0 million or 5.9% during the same period. LCNB's return on average assets was 1.19% and 1.21% for the respective three and six month periods in 2020 and return on average equity for the same periods was 8.63% and 8.69%."

Net interest income for the three and six months ended June 30, 2020 was, respectively, $408,000 and $1,195,000 greater than the comparable periods in 2019, due to growth in the average balance of LCNB's loan portfolio, partially offset by a decrease in the average rate earned on that portfolio. Also contributing to the increase in net interest income was a decrease in the average rate paid on deposits. These net favorable items were partially offset by a decrease in average investment securities.

The provision for loan losses for the three months ended June 30, 2020 was $38,000 less than the comparable period in 2019 and the six month period was $1,240,000 greater than the comparable period in 2019. Approximately 69% of the increase in the provision for the six month period was due to an adjustment to the allowance for potential impacts from the economic recession caused by the COVID-19 pandemic. Non-accrual loans and loans past due 90 days or more and still accruing interest increased $928,000, from $2,986,000 or 0.24% of total loans at June 30, 2019 to $3,914,000 or 0.29% of total loans at June 30, 2020.

Non-interest income for the three and six months ended June 30, 2020 was, respectively, $321,000 and $1,388,000 greater than the comparable periods in 2019 primarily due to increases in fiduciary income, gains from sales of loans, and increases in income from bank owned life insurance, partially offset by a decrease in service charges and fees on deposit accounts. The increase for the six month period included gains from the sale of equity securities, which is recorded in other operating income in the consolidated condensed statements of income, and gains from the sale of debt securities. Income from bank owned life insurance increased partially due to new policies purchased in the third quarter 2019 and partially due to a mortality benefit received during the first quarter 2020.

Non-interest expense for the three and six months ended June 30, 2020 was, respectively, $283,000 and $655,000 greater than the comparable periods in 2019, primarily due to increases in salaries and employee benefits, partially offset by decreases in marketing expense and FDIC insurance premiums. Salaries and employee benefits increased primarily due to salary and wage increases and newly hired employees, including additional business development positions. An increase in health insurance costs also contributed to the increase in salaries and employee benefits. FDIC insurance premiums decreased due to a small bank assessment credit received during the first and second quarters 2020. LCNB has used the credit in full and anticipates subsequent quarterly premium payments will return to normal levels.

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.

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, 2019, 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. LCNB’s ability to integrate recent and future acquisitions may be unsuccessful, or may be more difficult, time-consuming or costly than expected;
  4. LCNB may incur increased charge-offs in the future;
  5. LCNB may face competitive loss of customers;
  6. changes in the interest rate environment may have results on LCNB’s operations materially different from those anticipated by LCNB’s market risk management functions;
  7. changes in general economic conditions and increased competition could adversely affect LCNB’s operating results;
  8. 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;
  9. LCNB may experience difficulties growing loan and deposit balances;
  10. 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;
  11. 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;
  12. 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;
  13. adverse weather events and natural disasters and global and/or national epidemics; and
  14. government intervention in the U.S. financial system, including the effects of recent legislative, tax, accounting and regulatory actions and reforms, including 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

 

 

6/30/2020

 

3/31/2020

 

12/31/2019

 

9/30/2019

 

6/30/2019

 

6/30/2020

 

6/30/2019

Condensed Income Statement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

15,957

 

 

16,556

 

 

16,424

 

 

16,329

 

 

16,328

 

 

32,513

 

 

32,441

 

Interest expense

 

1,959

 

 

2,378

 

 

2,577

 

 

2,751

 

 

2,738

 

 

4,337

 

 

5,460

 

Net interest income

 

13,998

 

 

14,178

 

 

13,847

 

 

13,578

 

 

13,590

 

 

28,176

 

 

26,981

 

Provision (credit) for loan losses

 

16

 

 

1,173

 

 

(6)

 

 

264

 

 

54

 

 

1,189

 

 

(51)

 

Net interest income after provision

 

13,982

 

 

13,005

 

 

13,853

 

 

13,314

 

 

13,536

 

 

26,987

 

 

27,032

 

Non-interest income

 

3,319

 

 

3,839

 

 

3,222

 

 

3,356

 

 

2,998

 

 

7,158

 

 

5,770

 

Non-interest expense

 

11,116

 

 

11,072

 

 

11,007

 

 

10,982

 

 

10,833

 

 

22,188

 

 

21,533

 

Income before income taxes

 

6,185

 

 

5,772

 

 

6,068

 

 

5,688

 

 

5,701

 

 

11,957

 

 

11,269

 

Provision for income taxes

 

1,128

 

 

746

 

 

1,238

 

 

961

 

 

973

 

 

1,874

 

 

1,914

 

Net income

 

$

5,057

 

 

5,026

 

 

4,830

 

 

4,727

 

 

4,728

 

 

10,083

 

 

9,355

 

Amort/Accret income on acquired loans

 

$

294

 

 

667

 

 

400

 

 

302

 

 

355

 

 

961

 

 

579

 

Amort/Accret expenses on acquired interest-bearing liabilities

 

$

2

 

 

3

 

 

3

 

 

4

 

 

142

 

 

4

 

 

286

 

Tax-equivalent net interest income

 

$

14,006

 

 

14,254

 

 

13,937

 

 

13,679

 

 

13,700

 

 

28,319

 

 

27,236

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends per share

 

$

0.18

 

 

0.18

 

 

0.18

 

 

0.17

 

 

0.17

 

 

0.36

 

 

0.34

 

Basic earnings per common share

 

$

0.39

 

 

0.39

 

 

0.37

 

 

0.36

 

 

0.36

 

 

0.78

 

 

0.71

 

Diluted earnings per common share

 

$

0.39

 

 

0.39

 

 

0.37

 

 

0.36

 

 

0.36

 

 

0.78

 

 

0.71

 

Book value per share

 

$

18.27

 

 

18.00

 

 

17.63

 

 

17.44

 

 

17.18

 

 

18.27

 

 

17.18

 

Tangible book value per share

 

$

13.47

 

 

13.18

 

 

12.78

 

 

12.57

 

 

12.31

 

 

13.47

 

 

12.31

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

12,940,975

 

 

12,926,077

 

 

12,912,106

 

 

12,932,950

 

 

13,192,691

 

 

12,933,528

 

 

13,237,909

 

Diluted

 

12,941,001

 

 

12,927,666

 

 

12,916,000

 

 

12,937,145

 

 

13,196,665

 

 

12,934,158

 

 

13,241,752

 

Shares outstanding at period end

 

12,975,879

 

 

12,969,076

 

 

12,936,783

 

 

12,927,463

 

 

12,978,554

 

 

12,975,879

 

 

12,978,554

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

1.19

%

 

1.23

%

 

1.17

%

 

1.13

%

 

1.16

%

 

1.21

%

 

1.15

%

Return on average equity

 

8.63

%

 

8.75

%

 

8.42

%

 

8.33

%

 

8.46

%

 

8.69

%

 

8.47

%

Return on average tangible equity

 

11.74

%

 

12.00

%

 

11.63

%

 

11.57

%

 

11.87

%

 

11.92

%

 

11.84

%

Dividend payout ratio

 

46.15

%

 

46.15

%

 

48.65

%

 

47.22

%

 

47.22

%

 

46.15

%

 

47.89

%

Net interest margin (tax equivalent)

 

3.70

%

 

3.92

%

 

3.76

%

 

3.67

%

 

3.72

%

 

3.81

%

 

3.71

%

Efficiency ratio (tax equivalent)

 

63.94

%

 

61.19

%

 

64.15

%

 

64.47

%

 

64.87

%

 

62.54

%

 

65.24

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Balance Sheet Items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

42,736

 

 

24,795

 

 

20,765

 

 

22,826

 

 

23,185

 

 

 

 

 

Debt and equity securities

 

194,883

 

 

183,123

 

 

219,791

 

 

239,730

 

 

246,701

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

125,492

 

 

85,356

 

 

78,306

 

 

71,576

 

 

79,513

 

 

 

 

 

Commercial, secured by real estate

 

833,286

 

 

829,461

 

 

804,953

 

 

797,842

 

 

793,863

 

 

 

 

 

Residential real estate

 

334,349

 

 

318,009

 

 

322,533

 

 

320,703

 

 

326,029

 

 

 

 

 

Consumer

 

32,859

 

 

28,955

 

 

25,232

 

 

23,918

 

 

19,649

 

 

 

 

 

Agricultural

 

11,071

 

 

10,519

 

 

11,509

 

 

11,525

 

 

10,843

 

 

 

 

 

Other, including deposit overdrafts

 

283

 

 

436

 

 

1,193

 

 

456

 

 

373

 

 

 

 

 

Deferred net origination fees

 

(1,902)

 

 

(349)

 

 

(275)

 

 

(128)

 

 

(9)

 

 

 

 

 

Loans, gross

 

1,335,438

 

 

1,272,387

 

 

1,243,451

 

 

1,225,892

 

 

1,230,261

 

 

 

 

 

Less allowance for loan losses

 

5,016

 

 

5,008

 

 

4,045

 

 

4,167

 

 

4,112

 

 

 

 

 

Loans, net

 

$

1,330,422

 

 

1,267,379

 

 

1,239,406

 

 

1,221,725

 

 

1,226,149

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total earning assets

 

$

1,554,537

 

 

1,462,485

 

 

1,466,988

 

 

1,470,074

 

 

1,482,913

 

 

 

 

 

Total assets

 

1,735,332

 

 

1,636,280

 

 

1,639,308

 

 

1,644,447

 

 

1,642,012

 

 

 

 

 

Total deposits

 

1,438,921

 

 

1,345,872

 

 

1,348,280

 

 

1,355,383

 

 

1,357,959

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

6/30/2020

 

3/31/2020

 

12/31/2019

 

9/30/2019

 

6/30/2019

 

6/30/2020

 

6/30/2019

Selected Balance Sheet Items, continued

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt

 

33,998

 

 

35,996

 

 

40,994

 

 

41,990

 

 

41,986

 

 

 

 

 

Total shareholders’ equity

 

237,047

 

 

233,478

 

 

228,048

 

 

225,492

 

 

222,972

 

 

 

 

 

Equity to assets ratio

 

13.66

%

 

14.27

%

 

13.91

%

 

13.71

%

 

13.58

%

 

 

 

 

Loans to deposits ratio

 

92.81

%

 

94.54

%

 

92.22

%

 

90.45

%

 

90.60

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity (TCE)

 

$

174,823

 

 

170,994

 

 

165,304

 

 

162,485

 

 

159,702

 

 

 

 

 

Tangible common assets (TCA)

 

1,673,108

 

 

1,573,796

 

 

1,576,564

 

 

1,581,440

 

 

1,578,742

 

 

 

 

 

TCE/TCA

 

10.45

%

 

10.87

%

 

10.49

%

 

10.27

%

 

10.12

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Average Balance Sheet Items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

46,292

 

 

25,101

 

 

26,501

 

 

28,293

 

 

29,523

 

 

35,712

 

 

27,332

 

Debt and equity securities

 

182,371

 

 

204,912

 

 

231,115

 

 

243,553

 

 

249,954

 

 

193,642

 

 

257,972

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

1,318,753

 

 

1,252,554

 

 

1,230,845

 

 

1,227,806

 

 

1,217,726

 

 

1,285,654

 

 

1,213,292

 

Less allowance for loan losses

 

4,998

 

 

3,938

 

 

4,076

 

 

3,986

 

 

4,088

 

 

4,468

 

 

4,081

 

Net loans

 

$

1,313,755

 

 

1,248,616

 

 

1,226,769

 

 

1,223,820

 

 

1,213,638

 

 

1,281,186

 

 

1,209,211

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total earning assets

 

$

1,528,610

 

 

1,462,946

 

 

1,469,469

 

 

1,480,096

 

 

1,479,225

 

 

1,495,779

 

 

1,479,924

 

Total assets

 

1,704,303

 

 

1,638,486

 

 

1,643,793

 

 

1,654,034

 

 

1,637,645

 

 

1,671,394

 

 

1,636,370

 

Total deposits

 

1,412,082

 

 

1,346,770

 

 

1,352,101

 

 

1,365,702

 

 

1,352,449

 

 

1,379,426

 

 

1,343,042

 

Short-term borrowings

 

82

 

 

1,415

 

 

622

 

 

468

 

 

243

 

 

749

 

 

11,675

 

Long-term debt

 

34,964

 

 

38,325

 

 

41,742

 

 

41,988

 

 

42,567

 

 

36,644

 

 

43,616

 

Total shareholders’ equity

 

235,587

 

 

231,058

 

 

227,595

 

 

225,216

 

 

224,203

 

 

233,322

 

 

222,844

 

Equity to assets ratio

 

13.82

%

 

14.10

%

 

13.85

%

 

13.62

%

 

13.69

%

 

13.96

%

 

13.62

%

Loans to deposits ratio

 

93.39

%

 

93.00

%

 

91.03

%

 

89.90

%

 

90.04

%

 

93.20

%

 

90.34

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs (recoveries)

 

$

8

 

 

210

 

 

115

 

 

209

 

 

68

 

 

218

 

 

(117)

 

Other real estate owned

 

0

 

 

0

 

 

197

 

 

197

 

 

197

 

 

0

 

 

197

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans

 

3,876

 

 

2,829

 

 

3,210

 

 

3,523

 

 

2,962

 

 

3,876

 

 

2,962

 

Loans past due 90 days or more and still accruing

 

38

 

 

39

 

 

 

 

 

 

24

 

 

38

 

 

24

 

Total nonperforming loans

 

$

3,914

 

 

2,868

 

 

3,210

 

 

3,523

 

 

2,986

 

 

3,914

 

 

2,986

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs (recoveries) to average loans

 

0.00

%

 

0.07

%

 

0.04

%

 

0.07

%

 

0.02

%

 

0.03

%

 

(0.02)

%

Allowance for loan losses to total loans

 

0.38

%

 

0.39

%

 

0.33

%

 

0.34

%

 

0.33

%

 

0.38

%

 

0.33

%

Nonperforming loans to total loans

 

0.29

%

 

0.23

%

 

0.26

%

 

0.29

%

 

0.24

%

 

0.29

%

 

0.24

%

Nonperforming assets to total assets

 

0.23

%

 

0.18

%

 

0.21

%

 

0.23

%

 

0.19

%

 

0.23

%

 

0.19

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets Under Management

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LCNB Corp. total assets

 

$

1,735,332

 

 

1,636,280

 

 

1,639,308

 

 

1,644,447

 

 

1,642,012

 

 

 

 

 

Trust and investments (fair value)

 

516,076

 

 

455,974

 

 

435,664

 

 

411,724

 

 

382,462

 

 

 

 

 

Mortgage loans serviced

 

100,189

 

 

94,805

 

 

93,596

 

 

90,784

 

 

88,444

 

 

 

 

 

Cash management

 

116,615

 

 

77,471

 

 

75,948

 

 

117,530

 

 

71,973

 

 

 

 

 

Brokerage accounts (fair value)

 

255,276

 

 

235,278

 

 

268,059

 

 

262,038

 

 

260,202

 

 

 

 

 

Total assets managed

 

$

2,723,488

 

 

2,499,808

 

 

2,512,575

 

 

2,526,523

 

 

2,445,093

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LCNB CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

 

(Dollars in thousands)

   

 

 

June 30, 2020
(Unaudited)

 

December 31, 2019

ASSETS:

 

 

 

 

Cash and due from banks

 

$

18,520

 

 

17,019

 

Interest-bearing demand deposits

 

24,216

 

 

3,746

 

Total cash and cash equivalents

 

42,736

 

 

20,765

 

Investment securities:

 

 

 

 

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

 

2,163

 

 

2,312

 

Equity securities without a readily determinable fair value, at cost

 

2,099

 

 

2,099

 

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

 

153,529

 

 

178,000

 

Debt securities, held-to-maturity, at cost

 

27,237

 

 

27,525

 

Federal Reserve Bank stock, at cost

 

4,652

 

 

4,652

 

Federal Home Loan Bank stock, at cost

 

5,203

 

 

5,203

 

Loans, net

 

1,330,422

 

 

1,239,406

 

Premises and equipment, net

 

35,383

 

 

34,787

 

Operating leases right of use asset

 

5,532

 

 

5,444

 

Goodwill

 

59,221

 

 

59,221

 

Core deposit and other intangibles

 

3,558

 

 

4,006

 

Bank owned life insurance

 

41,596

 

 

41,667

 

Other assets

 

22,001

 

 

14,221

 

TOTAL ASSETS

 

$

1,735,332

 

 

1,639,308

 

 

 

 

 

 

LIABILITIES:

 

 

 

 

Deposits:

 

 

 

 

Noninterest-bearing

 

$

431,697

 

 

354,391

 

Interest-bearing

 

1,007,224

 

 

993,889

 

Total deposits

 

1,438,921

 

 

1,348,280

 

Long-term debt

 

33,998

 

 

40,994

 

Operating leases liability

 

5,558

 

 

5,446

 

Accrued interest and other liabilities

 

19,808

 

 

16,540

 

TOTAL LIABILITIES

 

1,498,285

 

 

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 at June 30, 2020 and December 31, 2019; issued 14,150,906 and 14,111,810 shares at June 30, 2020 and December 31, 2019, respectively

 

142,181

 

 

141,791

 

Retained earnings

 

109,845

 

 

104,431

 

Treasury shares at cost, 1,175,027 shares at June 30, 2020 and December 31, 2019

 

(18,847)

 

 

(18,847)

 

Accumulated other comprehensive income, net of taxes

 

3,868

 

 

673

 

TOTAL SHAREHOLDERS' EQUITY

 

237,047

 

 

228,048

 

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

 

$

1,735,332

 

 

1,639,308

 

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,

 

 

2020

 

2019

 

2020

 

2019

INTEREST INCOME:

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

14,822

 

 

14,662

 

 

30,049

 

 

29,200

 

Dividends on equity securities with a readily determinable fair value

 

13

 

 

15

 

 

27

 

 

32

 

Dividends on equity securities without a readily determinable fair value

 

12

 

 

16

 

 

28

 

 

32

 

Interest on debt securities, taxable

 

667

 

 

933

 

 

1,617

 

 

1,802

 

Interest on debt securities, non-taxable

 

254

 

 

417

 

 

539

 

 

961

 

Interest on interest-bearing time deposits

 

 

 

3

 

 

 

 

8

 

Other investments

 

189

 

 

282

 

 

253

 

 

406

 

TOTAL INTEREST INCOME

 

15,957

 

 

16,328

 

 

32,513

 

 

32,441

 

INTEREST EXPENSE:

 

 

 

 

 

 

 

 

Interest on deposits

 

1,732

 

 

2,464

 

 

3,849

 

 

4,750

 

Interest on short-term borrowings

 

 

 

2

 

 

7

 

 

221

 

Interest on long-term debt

 

227

 

 

272

 

 

481

 

 

489

 

TOTAL INTEREST EXPENSE

 

1,959

 

 

2,738

 

 

4,337

 

 

5,460

 

NET INTEREST INCOME

 

13,998

 

 

13,590

 

 

28,176

 

 

26,981

 

PROVISION (CREDIT) FOR LOAN LOSSES

 

16

 

 

54

 

 

1,189

 

 

(51)

 

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES

 

13,982

 

 

13,536

 

 

26,987

 

 

27,032

 

NON-INTEREST INCOME:

 

 

 

 

 

 

 

 

Fiduciary income

 

1,201

 

 

1,058

 

 

2,304

 

 

2,092

 

Service charges and fees on deposit accounts

 

1,237

 

 

1,497

 

 

2,532

 

 

2,805

 

Net gains (losses) on sales of debt securities

 

 

 

1

 

 

221

 

 

(17)

 

Bank owned life insurance income

 

287

 

 

183

 

 

888

 

 

365

 

Gains from sales of loans

 

317

 

 

64

 

 

437

 

 

93

 

Other operating income

 

277

 

 

195

 

 

776

 

 

432

 

TOTAL NON-INTEREST INCOME

 

3,319

 

 

2,998

 

 

7,158

 

 

5,770

 

NON-INTEREST EXPENSE:

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

6,648

 

 

6,243

 

 

13,416

 

 

12,405

 

Equipment expenses

 

289

 

 

278

 

 

576

 

 

544

 

Occupancy expense, net

 

723

 

 

744

 

 

1,405

 

 

1,507

 

State financial institutions tax

 

420

 

 

436

 

 

856

 

 

874

 

Marketing

 

258

 

 

297

 

 

435

 

 

599

 

Amortization of intangibles

 

260

 

 

260

 

 

520

 

 

517

 

FDIC insurance premiums, net

 

31

 

 

112

 

 

30

 

 

238

 

Contracted services

 

475

 

 

475

 

 

877

 

 

939

 

Other real estate owned

 

1

 

 

48

 

 

(9)

 

 

51

 

Merger-related expenses

 

 

 

20

 

 

 

 

87

 

Other non-interest expense

 

2,011

 

 

1,920

 

 

4,082

 

 

3,772

 

TOTAL NON-INTEREST EXPENSE

 

11,116

 

 

10,833

 

 

22,188

 

 

21,533

 

INCOME BEFORE INCOME TAXES

 

6,185

 

 

5,701

 

 

11,957

 

 

11,269

 

PROVISION FOR INCOME TAXES

 

1,128

 

 

973

 

 

1,874

 

 

1,914

 

NET INCOME

 

$

5,057

 

 

4,728

 

 

10,083

 

 

9,355

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

 

$

0.18

 

 

0.17

 

 

0.36

 

 

0.34

 

Earnings per common share:

 

 

 

 

 

 

 

 

Basic

 

0.39

 

 

0.36

 

 

0.78

 

 

0.71

 

Diluted

 

0.39

 

 

0.36

 

 

0.78

 

 

0.71

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

12,940,975

 

 

13,192,691

 

 

12,933,528

 

 

13,237,909

 

Diluted

 

12,941,001

 

 

13,196,665

 

 

12,934,158

 

 

13,241,752

 

 

Contacts

LCNB Corp.
Eric J. Meilstrup, CEO and President, 800-344-BANK
Robert C. Haines II, Executive Vice President and CFO, 800-344-BANK

Contacts

LCNB Corp.
Eric J. Meilstrup, CEO and President, 800-344-BANK
Robert C. Haines II, Executive Vice President and CFO, 800-344-BANK