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LCNB Corp. Reports Financial Results for the Three and Nine Months Ended September 30, 2019

LEBANON, Ohio--(BUSINESS WIRE)--

LCNB Corp. ("LCNB") (LCNB) today announced net income of $4,727,000 (total basic and diluted earnings per share of $0.36) and $14,082,000 (total basic and diluted earnings per share of $1.07) for the three and nine months ended September 30, 2019, respectively. This compares to net income of $4,201,000 (total basic and diluted earnings per share of $0.32) and $9,652,000 (total basic and diluted earnings per share of $0.84) for the same three and nine month periods in 2018.

Commenting on the financial results, LCNB Chief Executive Officer Eric Meilstrup said, "We are pleased to report strong earnings for the three and nine months ended September 30, 2019. Net income for the first nine months of 2019 was $4,430,000 greater than the first nine months of 2018, fueled by a $5,900,000 increase in net interest income that resulted primarily from a $63.4 million, or 5.5%, increase in our net loan portfolio, from $1.158 billion at September 30, 2018 to $1.222 billion at September 30, 2019. Part of the increase in net interest income was also due to a full nine months of net earnings on loans, deposits, and borrowings obtained through our merger with Columbus First Bancorp ("CFB") on May 31, 2018. Our return on average assets for the first nine months of 2019 was 1.15% and our return on average equity was 8.42%. Additionally, positive earnings growth allowed for increased shareholder dividends, from $0.48 per share for the first nine months of 2018 to $0.51 per share for the same period in 2019. LCNB remains committed to enhancing shareholder value. In addition to increased earnings and dividends, LCNB commenced a new share repurchase program during the second quarter 2019 that authorizes the repurchase of up to 500,000 shares of our outstanding common stock. Under this new program, we repurchased 400,000 shares during the second and third quarters."

Net interest income for the three and nine months ended September 30, 2019 was, respectively, $475,000 and $5,900,000 greater than the comparable periods in 2018, due to growth in the average balance of LCNB's loan portfolio and to an increase in the average rate earned on that portfolio, partially offset by a decrease in average investment securities and increases in average deposits and long-term borrowings and increases in the average rates paid for the deposits and borrowings. Loans, deposits, and long-term borrowings obtained through the merger with CFB were considerable components of the growth in the average balance of LCNB's loan portfolio and the increases in the average balances of deposits and long-term borrowings.

The provision for loan losses for the three and nine months ended September 30, 2019 was, respectively, $395,000 and $749,000 less than the comparable periods in 2018. Non-accrual loans and loans past due 90 days or more and still accruing interest increased $423,000, from $3,100,000 or 0.26% of total loans at December 31, 2018 to $3,523,000 or 0.29% of total loans at September 30, 2019. The increase in non-accrual loans is due to a loan with a carrying value of approximately $1.0 million that was newly classified as non-accrual during the third quarter 2019, This increase was partially offset by a net decrease in other loans classified as non-accrual or past due 90 days or more and still accruing interest.

Non-interest income for the three and nine months ended September 30, 2019 was, respectively, $435,000 and $778,000 greater than the comparable periods in 2018, primarily due to increases in fiduciary income, service charges and fees on deposit accounts, and bank owned life insurance income. Also contributing to the increase were market-driven increases in the fair value of equity security investments, which were recorded in other operating income in the consolidated condensed statements of income.

Non-interest expense for the three and nine months ended September 30, 2019 was, respectively, $665,000 and $1,938,000 greater than the comparable periods in 2018, primarily due to increases in salaries and employee benefits, state financial institutions tax, marketing, and contracted services expenses. Salaries and employee benefits increased primarily due to salary and wage increases and newly hired employees, including CFB employees retained. An increase in health insurance costs also contributed to the increase in salaries and employee benefits. State financial institutions tax expense increased due to a larger capital base (Ohio financial institutions tax is based on capital, not income), largely caused by stock issued to CFB stockholders as merger consideration. Marketing expense increased primarily due to promotion costs for new checking products introduced in 2018, increased marketing activities in the Columbus area, and expanded use of broadcast and digital media. A decrease in merger related expenses and the absence of an impairment charge recognized on one of LCNB's office buildings during the second quarter 2018 partially offset these increases.

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, 2018, 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. LCNB’s ability to integrate recent and any future acquisitions may be unsuccessful, or may be more difficult, time-consuming or costly than expected;
  3. LCNB may incur increased charge-offs in the future;
  4. LCNB may face competitive loss of customers;
  5. 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;
  6. changes in general economic conditions and increased competition could adversely affect LCNB’s operating results;
  7. changes in other regulations and government policies affecting bank holding companies and their subsidiaries, including changes in monetary policies, could negatively impact LCNB’s operating results;
  8. LCNB may experience difficulties growing loan and deposit balances;
  9. 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;
  10. 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;
  11. 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; and
  12. government intervention in the U.S. financial system, including the effects of 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

 

Nine Months Ended

9/30/2019

 

6/30/2019

 

3/31/2019

 

12/31/2018

 

9/30/2018

 

9/30/2019

 

9/30/2018

Condensed Income Statement

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

$

16,329

 

 

16,328

 

 

16,113

 

 

15,844

 

 

15,070

 

 

48,770

 

 

38,750

 

Interest expense

2,751

 

 

2,738

 

 

2,722

 

 

2,334

 

 

1,967

 

 

8,211

 

 

4,091

 

Net interest income

13,578

 

 

13,590

 

 

13,391

 

 

13,510

 

 

13,103

 

 

40,559

 

 

34,659

 

Provision (credit) for loan losses

264

 

 

54

 

 

(105

)

 

(39

)

 

659

 

 

213

 

 

962

 

Net interest income after provision

13,314

 

 

13,536

 

 

13,496

 

 

13,549

 

 

12,444

 

 

40,346

 

 

33,697

 

Non-interest income

3,356

 

 

2,998

 

 

2,772

 

 

2,702

 

 

2,921

 

 

9,126

 

 

8,348

 

Non-interest expense

10,982

 

 

10,833

 

 

10,700

 

 

9,925

 

 

10,317

 

 

32,515

 

 

30,577

 

Income before income taxes

5,688

 

 

5,701

 

 

5,568

 

 

6,326

 

 

5,048

 

 

16,957

 

 

11,468

 

Provision for income taxes

961

 

 

973

 

 

941

 

 

1,133

 

 

847

 

 

2,875

 

 

1,816

 

Net income

$

4,727

 

 

4,728

 

 

4,627

 

 

5,193

 

 

4,201

 

 

14,082

 

 

9,652

 

Amort/Accret income on acquired loans

$

302

 

 

355

 

 

224

 

 

229

 

 

198

 

 

881

 

 

340

 

Amort/Accret expenses on acquired interest-bearing liabilities

$

4

 

 

142

 

 

144

 

 

149

 

 

214

 

 

290

 

 

214

 

Tax-equivalent net interest income

$

13,679

 

 

13,700

 

 

13,536

 

 

13,680

 

 

13,279

 

 

40,915

 

 

35,203

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Data

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends per share

$

0.17

 

 

0.17

 

 

0.17

 

 

0.17

 

 

0.16

 

 

0.51

 

 

0.48

 

Basic earnings per common share

$

0.36

 

 

0.36

 

 

0.35

 

 

0.40

 

 

0.32

 

 

1.07

 

 

0.84

 

Diluted earnings per common share

$

0.36

 

 

0.36

 

 

0.35

 

 

0.40

 

 

0.32

 

 

1.07

 

 

0.84

 

Book value per share

$

17.44

 

 

17.18

 

 

16.83

 

 

16.47

 

 

16.05

 

 

17.44

 

 

16.05

 

Tangible book value per share

$

12.57

 

 

12.31

 

 

12.05

 

 

11.67

 

 

11.18

 

 

12.57

 

 

11.18

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

12,932,950

 

 

13,192,691

 

 

13,283,634

 

 

13,285,386

 

 

13,285,203

 

 

13,135,134

 

 

11,480,390

 

Diluted

12,937,145

 

 

13,196,665

 

 

13,287,338

 

 

13,290,499

 

 

13,290,665

 

 

13,139,100

 

 

11,486,051

 

Shares outstanding at period end

12,927,463

 

 

12,978,554

 

 

13,314,148

 

 

13,295,276

 

 

13,304,976

 

 

12,927,463

 

 

13,304,976

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

1.13

%

 

1.16

%

 

1.15

%

 

1.27

%

 

1.03

%

 

1.15

%

 

0.89

%

Return on average equity

8.33

%

 

8.46

%

 

8.47

%

 

9.55

%

 

7.76

%

 

8.42

%

 

7.23

%

Dividend payout ratio

47.22

%

 

47.22

%

 

48.57

%

 

42.50

%

 

50.00

%

 

47.66

%

 

57.14

%

Net interest margin (tax equivalent)

3.67

%

 

3.72

%

 

3.71

%

 

3.69

%

 

3.59

%

 

3.70

%

 

3.61

%

Efficiency ratio (tax equivalent)

64.47

%

 

64.87

%

 

65.61

%

 

60.58

%

 

63.68

%

 

64.98

%

 

70.21

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Balance Sheet Items

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

22,826

 

 

23,185

 

 

19,527

 

 

20,040

 

 

19,812

 

 

 

 

 

Debt and equity securities

239,730

 

 

246,701

 

 

264,559

 

 

282,813

 

 

299,786

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

$

71,576

 

 

79,513

 

 

79,725

 

 

77,740

 

 

78,002

 

 

 

 

 

Commercial, secured by real estate

797,842

 

 

793,863

 

 

764,424

 

 

740,647

 

 

704,987

 

 

 

 

 

Residential real estate

320,703

 

 

326,029

 

 

334,227

 

 

349,127

 

 

347,920

 

 

 

 

 

Consumer

23,918

 

 

19,649

 

 

17,409

 

 

17,283

 

 

17,505

 

 

 

 

 

Agricultural

11,525

 

 

10,843

 

 

10,900

 

 

13,297

 

 

13,280

 

 

 

 

 

Other, including deposit overdrafts

456

 

 

373

 

 

409

 

 

450

 

 

498

 

 

 

 

 

Deferred net origination costs (fees)

(128

)

 

(9

)

 

40

 

 

79

 

 

133

 

 

 

 

 

Loans, gross

1,225,892

 

 

1,230,261

 

 

1,207,134

 

 

1,198,623

 

 

1,162,325

 

 

 

 

 

Less allowance for loan losses

4,167

 

 

4,112

 

 

4,126

 

 

4,046

 

 

4,016

 

 

 

 

 

Loans, net

$

1,221,725

 

 

1,226,149

 

 

1,203,008

 

 

1,194,577

 

 

1,158,309

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total earning assets

$

1,470,074

 

 

1,482,913

 

 

1,476,862

 

 

1,483,166

 

 

1,465,787

 

 

 

 

 

Total assets

1,644,447

 

 

1,642,012

 

 

1,632,387

 

 

1,636,927

 

 

1,620,299

 

 

 

 

 

Total deposits

1,355,383

 

 

1,357,959

 

 

1,347,857

 

 

1,300,919

 

 

1,371,023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

9/30/2019

 

6/30/2019

 

3/31/2019

 

12/31/2018

 

9/30/2018

 

9/30/2019

 

9/30/2018

Selected Balance Sheet Items, continued

 

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

 

 

 

 

 

 

56,230

 

 

 

 

 

 

 

Long-term debt

41,990

 

 

41,986

 

 

42,982

 

 

47,032

 

 

23,079

 

 

 

 

 

Total shareholders’ equity

225,492

 

 

222,972

 

 

224,018

 

 

218,985

 

 

213,515

 

 

 

 

 

Equity to assets ratio

13.71

%

 

13.58

%

 

13.72

%

 

13.38

%

 

13.18

%

 

 

 

 

Loans to deposits ratio

90.45

%

 

90.60

%

 

89.56

%

 

92.14

%

 

84.78

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity (TCE)

$

162,485

 

 

159,702

 

 

160,488

 

 

155,197

 

 

149,398

 

 

 

 

 

Tangible common assets (TCA)

1,581,440

 

 

1,578,742

 

 

1,568,857

 

 

1,573,139

 

 

1,556,182

 

 

 

 

 

TCE/TCA

10.27

%

 

10.12

%

 

10.23

%

 

9.87

%

 

9.60

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Average Balance Sheet Items

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

28,293

 

 

29,523

 

 

25,080

 

 

20,685

 

 

25,920

 

 

27,600

 

 

25,011

 

Debt and equity securities

243,553

 

 

249,954

 

 

266,081

 

 

291,433

 

 

304,112

 

 

253,113

 

 

308,020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

$

1,227,806

 

 

1,217,726

 

 

1,208,809

 

 

1,177,061

 

 

1,155,846

 

 

1,218,183

 

 

991,350

 

Less allowance for loan losses

3,986

 

 

4,088

 

 

4,074

 

 

4,016

 

 

3,622

 

 

4,049

 

 

3,757

 

Net loans

$

1,223,820

 

 

1,213,638

 

 

1,204,735

 

 

1,173,045

 

 

1,152,224

 

 

1,214,134

 

 

987,593

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total earning assets

$

1,480,096

 

 

1,479,225

 

 

1,480,634

 

 

1,471,650

 

 

1,465,510

 

 

1,479,983

 

 

1,305,211

 

Total assets

1,654,034

 

 

1,637,645

 

 

1,635,416

 

 

1,626,029

 

 

1,623,016

 

 

1,642,186

 

 

1,442,896

 

Total deposits

1,365,702

 

 

1,352,449

 

 

1,333,529

 

 

1,333,673

 

 

1,367,950

 

 

1,350,678

 

 

1,232,599

 

Short-term borrowings

468

 

 

243

 

 

23,235

 

 

36,348

 

 

1,833

 

 

7,898

 

 

6,425

 

Long-term debt

41,988

 

 

42,567

 

 

44,676

 

 

25,536

 

 

25,757

 

 

43,067

 

 

13,841

 

Total shareholders’ equity

225,216

 

 

224,203

 

 

221,470

 

 

215,739

 

 

214,769

 

 

223,644

 

 

178,539

 

Equity to assets ratio

13.62

%

 

13.69

%

 

13.54

%

 

13.27

%

 

13.23

%

 

13.62

%

 

12.37

%

Loans to deposits ratio

89.90

%

 

90.04

%

 

90.65

%

 

88.26

%

 

84.49

%

 

90.19

%

 

80.43

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs (recoveries)

$

209

 

 

68

 

 

(185

)

 

(68

)

 

245

 

 

92

 

 

348

 

Other real estate owned

197

 

 

197

 

 

244

 

 

244

 

 

35

 

 

197

 

 

35

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans

3,523

 

 

2,962

 

 

2,845

 

 

2,951

 

 

2,603

 

 

3,523

 

 

2,603

 

Loans past due 90 days or more and still accruing

 

 

24

 

 

177

 

 

149

 

 

1

 

 

 

 

1

 

Total nonperforming loans

$

3,523

 

 

2,986

 

 

3,022

 

 

3,100

 

 

2,604

 

 

3,523

 

 

2,604

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs (recoveries) to average loans

0.07

%

 

0.02

%

 

(0.06

)%

 

(0.02

)%

 

0.08

%

 

0.01

%

 

0.05

%

Allowance for loan losses to total loans

0.34

%

 

0.33

%

 

0.34

%

 

0.34

%

 

0.35

%

 

0.34

%

 

0.35

%

Nonperforming loans to total loans

0.29

%

 

0.24

%

 

0.25

%

 

0.26

%

 

0.22

%

 

0.29

%

 

0.22

%

Nonperforming assets to total assets

0.23

%

 

0.19

%

 

0.20

%

 

0.20

%

 

0.16

%

 

0.23

%

 

0.16

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets Under Management

 

 

 

 

 

 

 

 

 

 

 

 

 

LCNB Corp. total assets

$

1,644,447

 

 

1,642,012

 

 

1,632,387

 

 

1,636,927

 

 

1,620,299

 

 

 

 

 

Trust and investments (fair value)

411,724

 

 

382,462

 

 

367,649

 

 

337,549

 

 

386,582

 

 

 

 

 

Mortgage loans serviced

104,358

 

 

88,444

 

 

89,049

 

 

97,685

 

 

115,647

 

 

 

 

 

Cash management

117,530

 

 

71,973

 

 

55,981

 

 

48,906

 

 

36,502

 

 

 

 

 

Brokerage accounts (fair value)

262,038

 

 

260,202

 

 

245,758

 

 

233,751

 

 

247,175

 

 

 

 

 

Total assets managed

$

2,540,097

 

 

2,445,093

 

 

2,390,824

 

 

2,354,818

 

 

2,406,205

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Financial Measures

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

4,727

 

 

4,728

 

 

4,627

 

 

5,193

 

 

4,201

 

 

14,082

 

 

9,652

 

Add: merger-related expenses, net of tax

21

 

 

16

 

 

53

 

 

148

 

 

274

 

 

90

 

 

1,605

 

Adjusted net income

$

4,748

 

 

4,744

 

 

4,680

 

 

5,341

 

 

4,475

 

 

14,172

 

 

11,257

 

Basic adjusted earnings per share

0.37

 

 

0.36

 

 

0.36

 

 

0.41

 

 

0.34

 

 

1.08

 

 

0.98

 

Diluted adjusted earnings per share

0.37

 

 

0.36

 

 

0.36

 

 

0.41

 

 

0.34

 

 

1.08

 

 

0.98

 

Adjusted return on average assets

1.14

%

 

1.16

%

 

1.16

%

 

1.30

%

 

1.09

%

 

1.15

%

 

1.04

%

Adjusted return on average equity

8.36

%

 

8.49

%

 

8.57

%

 

9.82

%

 

8.27

%

 

8.47

%

 

8.43

%

 

LCNB CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

(Dollars in thousands)

 

 

September 30,
2019
(Unaudited)

 

December 31,
2018

ASSETS:

 

 

 

Cash and due from banks

$

18,374

 

 

18,310

 

Interest-bearing demand deposits

4,452

 

 

1,730

 

Total cash and cash equivalents

22,826

 

 

20,040

 

Interest-bearing time deposits

249

 

 

996

 

Investment securities:

 

 

 

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

2,266

 

 

2,078

 

Equity securities without a readily determinable fair value, at cost

2,099

 

 

2,099

 

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

191,230

 

 

238,421

 

Debt securities, held-to-maturity, at cost

34,031

 

 

29,721

 

Federal Reserve Bank stock, at cost

4,652

 

 

4,653

 

Federal Home Loan Bank stock, at cost

5,203

 

 

4,845

 

Loans, net

1,221,725

 

 

1,194,577

 

Premises and equipment, net

34,045

 

 

32,627

 

Operating leases right of use asset

5,565

 

 

 

Goodwill

59,221

 

 

59,221

 

Core deposit and other intangibles

4,246

 

 

5,042

 

Bank owned life insurance

41,377

 

 

28,723

 

Other assets

15,712

 

 

13,884

 

TOTAL ASSETS

$

1,644,447

 

 

1,636,927

 

 

 

 

 

LIABILITIES:

 

 

 

Deposits:

 

 

 

Noninterest-bearing

$

335,989

 

 

322,571

 

Interest-bearing

1,019,394

 

 

978,348

 

Total deposits

1,355,383

 

 

1,300,919

 

Short-term borrowings

 

 

56,230

 

Long-term debt

41,990

 

 

47,032

 

Operating leases liability

5,531

 

 

 

Accrued interest and other liabilities

16,051

 

 

13,761

 

TOTAL LIABILITIES

1,418,955

 

 

1,417,942

 

 

 

 

 

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 September 30, 2019 and December 31, 2018; issued 14,102,490 and 14,070,303 shares at September 30, 2019 and December 31, 2018, respectively

141,618

 

 

141,170

 

Retained earnings

101,929

 

 

94,547

 

Treasury shares at cost, 1,175,027 and 775,027 shares at September 30, 2019 and December 31, 2018

(18,847

)

 

(12,013

)

Accumulated other comprehensive income (loss), net of taxes

792

 

 

(4,719

)

TOTAL SHAREHOLDERS' EQUITY

225,492

 

 

218,985

 

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

1,644,447

 

 

1,636,927

 

 

LCNB CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2019

 

2018

 

2019

 

2018

INTEREST INCOME:

 

 

 

 

 

 

 

Interest and fees on loans

$

14,872

 

 

13,363

 

 

44,072

 

 

33,479

 

Dividends on equity securities with a readily determinable fair value

15

 

 

17

 

 

47

 

 

48

 

Dividends on equity securities without a readily determinable fair value

16

 

 

7

 

 

48

 

 

22

 

Interest on debt securities, taxable

918

 

 

901

 

 

2,720

 

 

2,766

 

Interest on debt securities, non-taxable

379

 

 

661

 

 

1,340

 

 

2,045

 

Other short-term investments

129

 

 

121

 

 

543

 

 

390

 

TOTAL INTEREST INCOME

16,329

 

 

15,070

 

 

48,770

 

 

38,750

 

INTEREST EXPENSE:

 

 

 

 

 

 

 

Interest on deposits

2,475

 

 

1,810

 

 

7,225

 

 

3,777

 

Interest on short-term borrowings

3

 

 

12

 

 

224

 

 

88

 

Interest on long-term debt

273

 

 

145

 

 

762

 

 

226

 

TOTAL INTEREST EXPENSE

2,751

 

 

1,967

 

 

8,211

 

 

4,091

 

NET INTEREST INCOME

13,578

 

 

13,103

 

 

40,559

 

 

34,659

 

PROVISION FOR LOAN LOSSES

264

 

 

659

 

 

213

 

 

962

 

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES

13,314

 

 

12,444

 

 

40,346

 

 

33,697

 

NON-INTEREST INCOME:

 

 

 

 

 

 

 

Fiduciary income

1,123

 

 

1,081

 

 

3,215

 

 

2,987

 

Service charges and fees on deposit accounts

1,616

 

 

1,439

 

 

4,421

 

 

4,170

 

Net losses on sales of debt securities

(20

)

 

(7

)

 

(37

)

 

(8

)

Bank owned life insurance income

289

 

 

185

 

 

654

 

 

553

 

Gains from sales of loans

114

 

 

63

 

 

207

 

 

182

 

Other operating income

234

 

 

160

 

 

666

 

 

464

 

TOTAL NON-INTEREST INCOME

3,356

 

 

2,921

 

 

9,126

 

 

8,348

 

NON-INTEREST EXPENSE:

 

 

 

 

 

 

 

Salaries and employee benefits

6,403

 

 

5,686

 

 

18,808

 

 

15,791

 

Equipment expenses

322

 

 

276

 

 

866

 

 

797

 

Occupancy expense, net

751

 

 

734

 

 

2,258

 

 

2,119

 

State financial institutions tax

433

 

 

299

 

 

1,307

 

 

898

 

Marketing

410

 

 

382

 

 

1,009

 

 

798

 

Amortization of intangibles

263

 

 

286

 

 

780

 

 

659

 

FDIC insurance premiums (refunds), net

(13

)

 

91

 

 

225

 

 

289

 

Contracted services

455

 

 

387

 

 

1,394

 

 

1,093

 

Other real estate owned

1

 

 

1

 

 

52

 

 

4

 

Merger-related expenses

27

 

 

346

 

 

114

 

 

1,959

 

Other non-interest expense

1,930

 

 

1,829

 

 

5,702

 

 

6,170

 

TOTAL NON-INTEREST EXPENSE

10,982

 

 

10,317

 

 

32,515

 

 

30,577

 

INCOME BEFORE INCOME TAXES

5,688

 

 

5,048

 

 

16,957

 

 

11,468

 

PROVISION FOR INCOME TAXES

961

 

 

847

 

 

2,875

 

 

1,816

 

NET INCOME

$

4,727

 

 

4,201

 

 

14,082

 

 

9,652

 

 

 

 

 

 

 

 

 

Dividends declared per common share

$

0.17

 

 

0.16

 

 

0.51

 

 

0.48

 

Earnings per common share:

 

 

 

 

 

 

 

Basic

0.36

 

 

0.32

 

 

1.07

 

 

0.84

 

Diluted

0.36

 

 

0.32

 

 

1.07

 

 

0.84

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

Basic

12,932,950

 

 

13,285,203

 

 

13,135,134

 

 

11,480,390

 

Diluted

12,937,145

 

 

13,290,665

 

 

13,139,100

 

 

11,486,051

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20191021005845/en/