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LCNB Corp. Reports Financial Results for the Three and Six Months Ended June 30, 2019

LEBANON, Ohio--(BUSINESS WIRE)--

LCNB Corp. ("LCNB") (LCNB) today announced 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 three and six months ended June 30, 2019, respectively. This compares to net income of $2,738,000 (total basic and diluted earnings per share of $0.25) and $5,451,000 (total basic and diluted earnings per share of $0.52) for the same three and six 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 six months ended June 30, 2019. Net income for the first half of 2019 was $3,904,000 greater than the first half of 2018, fueled by a $5,425,000 increase in net interest income that resulted primarily from a $70.7 million increase in our net loan portfolio, from $1.155 billion at June 30, 2018 to $1.226 billion at June 30, 2019. Our return on average assets for the first half of 2019 was 1.15% and our return on average equity was 8.47%. Additionally, positive earnings growth allowed for increased shareholder dividends, from $0.32 per share for the first half of 2018 to $0.34 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 342,085 shares during the second quarter."

Net interest income for the three and six months ended June 30, 2019 was, respectively, $2,222,000 and $5,425,000 greater than the comparable periods in 2018, primarily due to growth in the average balance of LCNB's loan portfolio, partially offset by a decrease in average investment securities and increases in average deposits and long-term borrowings. Also offsetting the positive effect on net interest income from growth in the loan portfolio was a market-driven increase in average rates paid on deposits. Loans, deposits, and long-term borrowings obtained through the merger with Columbus First Bancorp ("CFB") on May 31, 2018 were a considerable component 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 six months ended June 30, 2019 was, respectively, $170,000 and $354,000 less than the comparable periods in 2018. Non-accrual loans and loans past due 90 days or more and still accruing interest decreased $114,000, from $3,100,000 or 0.26% of total loans at December 31, 2018 to $2,986,000 or 0.24% of total loans at June 30, 2019.

Non-interest income for the three and six months ended June 30, 2019 was, respectively, $207,000 and $343,000 greater than the comparable periods in 2018, primarily due to increases in fiduciary income and service charges and fees on deposit accounts. Market-driven increases in the fair value of equity security investments contributed to the increase in other operating income for the six-month period, but the effect on the three-month period was negligible.

Non-interest expense for the three and six months ended June 30, 2019 was, respectively, $122,000 and $1,273,000 greater than the comparable periods in 2018, primarily due to increases in salaries and employee benefits, state financial institutions tax, marketing, amortization of intangibles, contracted services expenses and other real estate owned expenses. Salaries and employee benefits increased primarily due to salary and wage increases and newly hired employees, including CFB employees retained. 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. Amortization of intangibles increased due to amortization of the core deposit intangible recorded as part of the acquisition of CFB. Other real estate owned expense increased due to an impairment charge recognized during the second quarter 2019. 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 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. the current economic environment poses significant challenges for us and could adversely affect LCNB's financial condition and results of operations;
  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 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

 

6/30/2019

 

3/31/2019

 

12/31/2018

 

9/30/2018

 

6/30/2018

 

6/30/2019

 

6/30/2018

Condensed Income Statement

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

$

 

16,328

 

 

16,113

 

 

15,844

 

 

15,070

 

 

12,538

 

 

32,441

 

 

23,680

 

Interest expense

 

2,738

 

 

2,722

 

 

2,334

 

 

1,967

 

 

1,170

 

 

5,460

 

 

2,124

 

Net interest income

 

13,590

 

 

13,391

 

 

13,510

 

 

13,103

 

 

11,368

 

 

26,981

 

 

21,556

 

Provision (credit) for loan losses

 

54

 

 

(105

)

 

(39

)

 

659

 

 

224

 

 

(51

)

 

303

 

Net interest income after provision

 

13,536

 

 

13,496

 

 

13,549

 

 

12,444

 

 

11,144

 

 

27,032

 

 

21,253

 

Non-interest income

 

2,998

 

 

2,772

 

 

2,702

 

 

2,921

 

 

2,791

 

 

5,770

 

 

5,427

 

Non-interest expense

 

10,833

 

 

10,700

 

 

9,925

 

 

10,317

 

 

10,711

 

 

21,533

 

 

20,260

 

Income before income taxes

 

5,701

 

 

5,568

 

 

6,326

 

 

5,048

 

 

3,224

 

 

11,269

 

 

6,420

 

Provision for income taxes

 

973

 

 

941

 

 

1,133

 

 

847

 

 

486

 

 

1,914

 

 

969

 

Net income

$

 

4,728

 

 

4,627

 

 

5,193

 

 

4,201

 

 

2,738

 

 

9,355

 

 

5,451

 

Amort/Accret income on acquired loans

$

 

355

 

 

224

 

 

229

 

 

198

 

 

44

 

 

579

 

 

140

 

Amort/Accret expenses on acquired interest-bearing liabilities

$

 

142

 

 

144

 

 

149

 

 

214

 

 

 

 

286

 

 

 

Tax-equivalent net interest income

$

 

13,700

 

 

13,536

 

 

13,680

 

 

13,279

 

 

11,549

 

 

27,236

 

 

21,924

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Data

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends per share

$

 

0.17

 

 

0.17

 

 

0.17

 

 

0.16

 

 

0.16

 

 

0.34

 

 

0.32

 

Basic earnings per common share

$

 

0.36

 

 

0.35

 

 

0.40

 

 

0.32

 

 

0.25

 

 

0.71

 

 

0.52

 

Diluted earnings per common share

$

 

0.36

 

 

0.35

 

 

0.40

 

 

0.32

 

 

0.25

 

 

0.71

 

 

0.52

 

Book value per share

$

 

17.18

 

 

16.83

 

 

16.47

 

 

16.05

 

 

15.97

 

 

17.18

 

 

15.97

 

Tangible book value per share

$

 

12.31

 

 

12.05

 

 

11.67

 

 

11.23

 

 

11.14

 

 

12.31

 

 

11.14

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

13,192,691

 

 

13,283,634

 

 

13,285,386

 

 

13,285,203

 

 

11,099,485

 

 

13,237,909

 

 

10,563,030

 

Diluted

 

13,196,665

 

 

13,287,338

 

 

13,290,499

 

 

13,290,665

 

 

11,105,014

 

 

13,241,752

 

 

10,568,792

 

Shares outstanding at period end

 

12,978,554

 

 

13,314,148

 

 

13,295,276

 

 

13,304,976

 

 

13,299,235

 

 

12,978,554

 

 

13,299,235

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

1.16

%

 

1.15

%

 

1.27

%

 

1.03

%

 

0.78

%

 

1.15

%

 

0.81

%

Return on average equity

 

8.46

%

 

8.47

%

 

9.55

%

 

7.76

%

 

6.46

%

 

8.47

%

 

6.87

%

Dividend payout ratio

 

47.22

%

 

48.57

%

 

42.50

%

 

50.00

%

 

64.00

%

 

47.89

%

 

61.54

%

Net interest margin (tax equivalent)

 

3.72

%

 

3.71

%

 

3.69

%

 

3.59

%

 

3.63

%

 

3.71

%

 

3.61

%

Efficiency ratio (tax equivalent)

 

64.87

%

 

65.61

%

 

60.58

%

 

63.69

%

 

74.69

%

 

65.24

%

 

74.07

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Balance Sheet Items

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

 

23,185

 

 

19,527

 

 

20,040

 

 

19,812

 

 

24,901

 

 

 

 

 

Debt and equity securities

 

246,701

 

 

264,559

 

 

282,813

 

 

299,786

 

 

311,047

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

$

 

79,513

 

 

79,725

 

 

77,740

 

 

78,002

 

 

81,778

 

 

 

 

 

Commercial, secured by real estate

 

793,863

 

 

764,424

 

 

740,647

 

 

704,987

 

 

705,978

 

 

 

 

 

Residential real estate

 

326,029

 

 

334,227

 

 

349,127

 

 

347,920

 

 

339,435

 

 

 

 

 

Consumer

 

19,649

 

 

17,409

 

 

17,283

 

 

17,505

 

 

17,705

 

 

 

 

 

Agricultural

 

10,843

 

 

10,900

 

 

13,297

 

 

13,280

 

 

13,390

 

 

 

 

 

Other, including deposit overdrafts

 

373

 

 

409

 

 

450

 

 

498

 

 

583

 

 

 

 

 

Deferred net origination costs (fees)

 

(9

)

 

40

 

 

79

 

 

133

 

 

229

 

 

 

 

 

Loans, gross

 

1,230,261

 

 

1,207,134

 

 

1,198,623

 

 

1,162,325

 

 

1,159,098

 

 

 

 

 

Less allowance for loan losses

 

4,112

 

 

4,126

 

 

4,046

 

 

4,016

 

 

3,603

 

 

 

 

 

Loans, net

$

 

1,226,149

 

 

1,203,008

 

 

1,194,577

 

 

1,158,309

 

 

1,155,495

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total earning assets

$

 

1,482,913

 

 

1,476,862

 

 

1,483,166

 

 

1,465,787

 

 

1,471,923

 

 

 

 

 

Total assets

 

1,642,012

 

 

1,632,387

 

 

1,636,927

 

 

1,620,299

 

 

1,631,442

 

 

 

 

 

Total deposits

 

1,357,959

 

 

1,347,857

 

 

1,300,919

 

 

1,371,023

 

 

1,380,884

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

6/30/2019

 

3/31/2019

 

12/31/2018

 

9/30/2018

 

6/30/2018

 

6/30/2019

 

6/30/2018

Selected Balance Sheet Items, continued

 

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

 

0

 

 

0

 

 

56,230

 

 

0

 

 

0

 

 

 

 

 

Long-term debt

 

41,986

 

 

42,982

 

 

47,032

 

 

23,079

 

 

27,085

 

 

 

 

 

Total shareholders’ equity

 

222,972

 

 

224,018

 

 

218,985

 

 

213,515

 

 

212,366

 

 

 

 

 

Equity to assets ratio

 

13.58

%

 

13.72

%

 

13.38

%

 

13.18

%

 

13.02

%

 

 

 

 

Loans to deposits ratio

 

90.60

%

 

89.56

%

 

92.14

%

 

84.78

%

 

83.94

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity (TCE)

$

 

159,702

 

 

160,488

 

 

155,197

 

 

149,398

 

 

147,705

 

 

 

 

 

Tangible common assets (TCA)

 

1,578,742

 

 

1,568,857

 

 

1,573,139

 

 

1,556,182

 

 

1,566,781

 

 

 

 

 

TCE/TCA

 

10.12

%

 

10.23

%

 

9.87

%

 

9.60

%

 

9.43

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Average Balance Sheet Items

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

 

29,523

 

 

25,080

 

 

20,685

 

 

25,920

 

 

27,319

 

 

27,332

 

 

24,601

 

Debt and equity securities

 

249,954

 

 

266,081

 

 

291,433

 

 

304,112

 

 

306,366

 

 

257,972

 

 

310,007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

$

 

1,217,726

 

 

1,208,809

 

 

1,177,061

 

 

1,155,846

 

 

961,726

 

 

1,213,292

 

 

907,739

 

Less allowance for loan losses

 

4,088

 

 

4,074

 

 

4,016

 

 

3,622

 

 

4,245

 

 

4,081

 

 

3,825

 

Net loans

$

 

1,213,638

 

 

1,204,735

 

 

1,173,045

 

 

1,152,224

 

 

957,481

 

 

1,209,211

 

 

903,914

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total earning assets

$

 

1,479,225

 

 

1,480,634

 

 

1,471,650

 

 

1,465,510

 

 

1,276,176

 

 

1,479,924

 

 

1,223,733

 

Total assets

 

1,637,645

 

 

1,635,416

 

 

1,626,029

 

 

1,623,016

 

 

1,409,698

 

 

1,636,370

 

 

1,351,355

 

Total deposits

 

1,352,449

 

 

1,333,529

 

 

1,333,673

 

 

1,367,950

 

 

1,212,104

 

 

1,343,042

 

 

1,163,810

 

Short-term borrowings

 

243

 

 

23,235

 

 

36,348

 

 

1,833

 

 

3,491

 

 

11,675

 

 

8,759

 

Long-term debt

 

42,567

 

 

44,676

 

 

25,536

 

 

25,757

 

 

13,252

 

 

43,616

 

 

7,784

 

Total shareholders’ equity

 

224,203

 

 

221,470

 

 

215,739

 

 

214,769

 

 

170,077

 

 

222,844

 

 

160,123

 

Equity to assets ratio

 

13.69

%

 

13.54

%

 

13.27

%

 

13.23

%

 

12.06

%

 

13.62

%

 

11.85

%

Loans to deposits ratio

 

90.04

%

 

90.65

%

 

88.26

%

 

84.49

%

 

79.34

%

 

90.34

%

 

78.00

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs (recoveries)

$

 

68

 

 

(185

)

 

(68

)

 

245

 

 

150

 

 

(117

)

 

103

 

Other real estate owned

 

197

 

 

244

 

 

244

 

 

35

 

 

35

 

 

197

 

 

35

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans

 

2,962

 

 

2,845

 

 

2,951

 

 

2,603

 

 

4,065

 

 

2,962

 

 

4,065

 

Loans past due 90 days or more and still accruing

 

24

 

 

177

 

 

149

 

 

1

 

 

5

 

 

24

 

 

5

 

Total nonperforming loans

$

 

2,986

 

 

3,022

 

 

3,100

 

 

2,604

 

 

4,070

 

 

2,986

 

 

4,070

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs (recoveries) to average loans

 

0.02

%

 

(0.06

)%

 

(0.02

)%

 

0.08

%

 

0.06

%

 

(0.02

)%

 

0.02

%

Allowance for loan losses to total loans

 

0.33

%

 

0.34

%

 

0.34

%

 

0.35

%

 

0.31

%

 

0.33

%

 

0.31

%

Nonperforming loans to total loans

 

0.24

%

 

0.25

%

 

0.26

%

 

0.22

%

 

0.35

%

 

0.24

%

 

0.35

%

Nonperforming assets to total assets

 

0.19

%

 

0.20

%

 

0.20

%

 

0.16

%

 

0.25

%

 

0.19

%

 

0.25

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets Under Management

 

 

 

 

 

 

 

 

 

 

 

 

 

LCNB Corp. total assets

$

 

1,642,012

 

 

1,632,387

 

 

1,636,927

 

 

1,620,299

 

 

1,631,442

 

 

 

 

 

Trust and investments (fair value)

 

382,462

 

 

367,649

 

 

337,549

 

 

386,582

 

 

370,587

 

 

 

 

 

Mortgage loans serviced

 

88,444

 

 

89,049

 

 

97,685

 

 

115,647

 

 

114,536

 

 

 

 

 

Cash management

 

71,973

 

 

55,981

 

 

48,906

 

 

36,502

 

 

48,369

 

 

 

 

 

Brokerage accounts (fair value)

 

260,202

 

 

245,758

 

 

233,751

 

 

247,175

 

 

238,651

 

 

 

 

 

Total assets managed

$

 

2,445,093

 

 

2,390,824

 

 

2,354,818

 

 

2,406,205

 

 

2,403,585

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Financial Measures

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

 

4,728

 

 

4,627

 

 

5,193

 

 

4,201

 

 

2,738

 

 

9,355

 

 

5,451

 

Add: merger-related expenses, net of tax

 

16

 

 

53

 

 

148

 

 

274

 

 

710

 

 

69

 

 

1,331

 

Adjusted net income

$

 

4,744

 

 

4,680

 

 

5,341

 

 

4,475

 

 

3,448

 

 

9,424

 

 

6,782

 

Basic adjusted earnings per share

 

0.36

 

 

0.36

 

 

0.41

 

 

0.34

 

 

0.31

 

 

0.71

 

 

0.64

 

Diluted adjusted earnings per share

 

0.36

 

 

0.36

 

 

0.41

 

 

0.34

 

 

0.31

 

 

0.71

 

 

0.64

 

Adjusted return on average assets

 

1.16

%

 

1.16

%

 

1.30

%

 

1.09

%

 

0.98

%

 

1.16

%

 

1.01

%

Adjusted return on average equity

 

8.49

%

 

8.57

%

 

9.82

%

 

8.27

%

 

8.13

%

 

8.53

%

 

8.54

%

LCNB CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

(Dollars in thousands)

 

 

June 30, 2019
(Unaudited)

 

December 31,
2018

ASSETS:

 

 

 

Cash and due from banks

$

 

17,234

 

 

18,310

 

Interest-bearing demand deposits

 

5,951

 

 

1,730

 

Total cash and cash equivalents

 

23,185

 

 

20,040

 

Interest-bearing time deposits

 

498

 

 

996

 

Investment securities:

 

 

 

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

 

2,246

 

 

2,078

 

Equity securities without a readily determinable fair value, at cost

 

2,099

 

 

2,099

 

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

 

198,660

 

 

238,421

 

Debt securities, held-to-maturity, at cost

 

33,343

 

 

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

 

1,226,149

 

 

1,194,577

 

Premises and equipment, net

 

33,013

 

 

32,627

 

Operating leases right of use asset

 

5,686

 

 

 

Goodwill

 

59,221

 

 

59,221

 

Core deposit and other intangibles

 

4,494

 

 

5,042

 

Bank owned life insurance

 

29,088

 

 

28,723

 

Other assets

 

14,475

 

 

13,884

 

TOTAL ASSETS

$

 

1,642,012

 

 

1,636,927

 

 

 

 

 

LIABILITIES:

 

 

 

Deposits:

 

 

 

Noninterest-bearing

$

 

335,474

 

 

322,571

 

Interest-bearing

 

1,022,485

 

 

978,348

 

Total deposits

 

1,357,959

 

 

1,300,919

 

Short-term borrowings

 

 

56,230

 

Long-term debt

 

41,986

 

 

47,032

 

Operating leases liability

 

5,615

 

 

 

Accrued interest and other liabilities

 

13,480

 

 

13,761

 

TOTAL LIABILITIES

 

1,419,040

 

 

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 June 30, 2019 and December 31, 2018; issued 14,095,666 and 14,070,303 shares at June 30, 2019 and December 31, 2018, respectively

 

141,479

 

 

141,170

 

Retained earnings

 

99,400

 

 

94,547

 

Treasury shares at cost, 1,117,112 and 775,027 shares at June 30, 2019 and December 31, 2018

 

(17,854

)

 

(12,013

)

Accumulated other comprehensive loss, net of taxes

 

(53

)

 

(4,719

)

TOTAL SHAREHOLDERS' EQUITY

 

222,972

 

 

218,985

 

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

 

1,642,012

 

 

1,636,927

 

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,

 

2019

 

2018

 

2019

 

2018

INTEREST INCOME:

 

 

 

 

 

 

 

Interest and fees on loans

$

 

 

14,662

 

 

10,703

 

 

29,200

 

 

20,116

 

Dividends on equity securities with a readily determinable fair value

 

15

 

 

16

 

 

32

 

 

31

 

Dividends on equity securities without a readily determinable fair value

 

16

 

 

8

 

 

32

 

 

15

 

Interest on debt securities, taxable

 

933

 

 

934

 

 

1,802

 

 

1,865

 

Interest on debt securities, non-taxable

 

417

 

 

680

 

 

961

 

 

1,384

 

Other short-term investments

 

285

 

 

197

 

 

414

 

 

269

 

TOTAL INTEREST INCOME

 

16,328

 

 

12,538

 

 

32,441

 

 

23,680

 

INTEREST EXPENSE:

 

 

 

 

 

 

 

Interest on deposits

 

2,464

 

 

1,096

 

 

4,750

 

 

1,967

 

Interest on short-term borrowings

 

2

 

 

7

 

 

221

 

 

76

 

Interest on long-term debt

 

272

 

 

67

 

 

489

 

 

81

 

TOTAL INTEREST EXPENSE

 

2,738

 

 

1,170

 

 

5,460

 

 

2,124

 

NET INTEREST INCOME

 

13,590

 

 

11,368

 

 

26,981

 

 

21,556

 

PROVISION (CREDIT) FOR LOAN LOSSES

 

54

 

 

224

 

 

(51

)

 

303

 

NET INTEREST INCOME AFTER PROVISION (CREDIT) FOR LOAN LOSSES

 

13,536

 

 

11,144

 

 

27,032

 

 

21,253

 

NON-INTEREST INCOME:

 

 

 

 

 

 

 

Fiduciary income

 

1,058

 

 

942

 

 

2,092

 

 

1,906

 

Service charges and fees on deposit accounts

 

1,497

 

 

1,426

 

 

2,805

 

 

2,731

 

Net gains (losses) on sales of debt securities

 

1

 

 

(1

)

 

(17

)

 

(1

)

Bank owned life insurance income

 

183

 

 

182

 

 

365

 

 

368

 

Gains from sales of loans

 

64

 

 

97

 

 

93

 

 

119

 

Other operating income

 

195

 

 

145

 

 

432

 

 

304

 

TOTAL NON-INTEREST INCOME

 

2,998

 

 

2,791

 

 

5,770

 

 

5,427

 

NON-INTEREST EXPENSE:

 

 

 

 

 

 

 

Salaries and employee benefits

 

6,243

 

 

5,128

 

 

12,405

 

 

10,105

 

Equipment expenses

 

278

 

 

268

 

 

544

 

 

521

 

Occupancy expense, net

 

744

 

 

658

 

 

1,507

 

 

1,385

 

State financial institutions tax

 

436

 

 

296

 

 

874

 

 

599

 

Marketing

 

297

 

 

284

 

 

599

 

 

416

 

Amortization of intangibles

 

260

 

 

188

 

 

517

 

 

373

 

FDIC insurance premiums

 

112

 

 

99

 

 

238

 

 

198

 

Contracted services

 

475

 

 

391

 

 

939

 

 

706

 

Other real estate owned

 

48

 

 

1

 

 

51

 

 

3

 

Merger-related expenses

 

20

 

 

855

 

 

87

 

 

1,613

 

Other non-interest expense

 

1,920

 

 

2,543

 

 

3,772

 

 

4,341

 

TOTAL NON-INTEREST EXPENSE

 

10,833

 

 

10,711

 

 

21,533

 

 

20,260

 

INCOME BEFORE INCOME TAXES

 

5,701

 

 

3,224

 

 

11,269

 

 

6,420

 

PROVISION FOR INCOME TAXES

 

973

 

 

486

 

 

1,914

 

 

969

 

NET INCOME

$

 

 

4,728

 

 

2,738

 

 

9,355

 

 

5,451

 

 

 

 

 

 

 

 

 

Dividends declared per common share

$

 

 

0.17

 

 

0.16

 

 

0.34

 

 

0.32

 

Earnings per common share:

 

 

 

 

 

 

 

Basic

 

0.36

 

 

0.25

 

 

0.71

 

 

0.52

 

Diluted

 

0.36

 

 

0.25

 

 

0.71

 

 

0.52

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

Basic

 

13,192,691

 

 

11,099,485

 

 

13,237,909

 

 

10,563,030

 

Diluted

 

13,196,665

 

 

11,105,014

 

 

13,241,752

 

 

10,568,792

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20190722005760/en/