ex_761926.htm

EX-99.2 3 ex_761926.htm EXHIBIT 99.2 ex_761926.htm

Exhibit 99.2

LCNB Corp. and Subsidiaries

Financial Highlights

(Dollars in thousands, except per share amounts)

(Unaudited)

	Three Months Ended															Twelve Months Ended
	12/31/2024			9/30/2024			6/30/2024			3/31/2024			12/31/2023			12/31/2024			12/31/2023
Condensed Income Statement
Interest income	$	26,894			26,398			26,965			24,758			23,310			105,015			79,599
Interest expense		10,181			11,428			11,748			10,863			8,651			44,220			23,250
Net interest income		16,713			14,970			15,217			13,895			14,659			60,795			56,349
Provision for credit losses		649			660			528			125			2,218			1,962			2,077
Net interest income after provision for credit losses		16,064			14,310			14,689			13,770			12,441			58,833			54,272
Non-interest income		5,988			6,407			4,080			3,929			4,606			20,404			15,411
Non-interest expense		14,592			15,387			17,825			15,472			17,576			63,276			54,423
Income (loss) before income taxes		7,460			5,330			944			2,227			(529	)		15,961			15,260
Provision for (benefit from) income taxes		1,340			798			19			312			(236	)		2,469			2,632
Net income (loss)	$	6,120		$	4,532		$	925		$	1,915		$	(293	)	$	13,492		$	12,628

Supplemental Income Statement Information
Accretion income on acquired loans	$	1,271			800			1,248			776			410			4,095			484
Amortization expenses on acquired interest-bearing liabilities	$	119			378			638			459			309			1,594			309
Tax-equivalent net interest income	$	16,754			15,013			15,256			13,933			14,703			60,956			56,532
Pre-provision, pre-tax net income	$	8,109			5,990			1,472			2,352			1,689			17,923			17,337

Per Share Data
Dividends per share	$	0.22			0.22			0.22			0.22			0.22			0.88			0.85
Basic earnings (loss) per common share	$	0.44			0.31			0.07			0.15			(0.02	)		0.97			1.10
Diluted earnings (loss) per common share	$	0.44			0.31			0.07			0.15			(0.02	)		0.97			1.10
Book value per share	$	17.92			17.95			17.33			17.67			17.86			17.92			17.86
Tangible book value per share	$	10.96			10.97			10.08			11.26			11.42			10.96			11.42
Weighted average common shares outstanding:
Basic		14,111,636			14,103,358			14,033,264			13,112,302			12,378,289			13,849,578			11,417,857
Diluted		14,111,636			14,103,358			14,033,264			13,112,302			12,378,289			13,849,578			11,417,857
Shares outstanding at period end		14,118,040			14,110,210			14,151,755			13,224,276			13,173,569			14,118,040			13,173,569

Selected Financial Ratios
Return on average assets		1.04	%		0.76	%		0.15	%		0.34	%		(0.05	)%		0.57	%		0.63	%
Return on average equity		9.60	%		7.23	%		1.53	%		3.28	%		(0.53	)%		5.49	%		6.08	%
Return on average tangible common equity		15.67	%		12.27	%		2.59	%		5.12	%		(0.81	)%		9.05	%		8.81	%
Dividend payout ratio		50.00	%		70.97	%		314.29	%		146.67	%		NM			90.72	%		77.27	%
Net interest margin (tax equivalent)		3.22	%		2.84	%		2.86	%		2.72	%		2.99	%		2.91	%		3.14	%
Efficiency ratio (tax equivalent)		64.16	%		71.83	%		92.19	%		86.62	%		91.02	%		77.77	%		75.65	%

Selected Balance Sheet Items
Cash and cash equivalents	$	35,744		$	39,374		$	34,872		$	32,951		$	39,723
Debt and equity securities		306,795			313,545			312,241			306,775			318,723

Loans:
Commercial and industrial	$	118,494		$	119,079		$	125,703		$	122,229		$	120,411
Commercial, secured by real estate		1,113,921			1,105,405			1,117,798			1,099,601			1,107,556
Residential real estate		456,298			459,740			458,949			398,250			459,073
Consumer		20,474			22,088			22,912			24,137			25,578
Agricultural		13,242			13,113			11,685			12,647			10,952
Other, including deposit overdrafts		179			496			233			73			82
Deferred net origination fees		(796	)		(861	)		(533	)		(583	)		(181	)
Loans, gross		1,721,812			1,719,060			1,736,747			1,656,354			1,723,471
Less allowance for credit losses		12,001			11,867			11,270			10,557			10,525
Loans, net	$	1,709,811		$	1,707,193		$	1,725,477		$	1,645,797		$	1,712,946

Loans held for sale	$	5,556			35,687			44,002			75,581			—

NM - Not Meaningful

	Three Months Ended															Twelve Months Ended
	12/31/2024			9/30/2024			6/30/2024			3/31/2024			12/31/2023			12/31/2024			12/31/2023
Selected Balance Sheet Items, continued

Allowance for Credit Losses on Loans:
Allowance for credit losses, beginning of period	$	11,867			11,270			10,557			10,525			7,932
Fair value adjustment for purchased credit deteriorated loans		—			—			189			—			493
Provision for credit losses on loans		728			681			542			77			2,203
Losses charged off		(616	)		(122	)		(87	)		(78	)		(126	)
Recoveries		22			38			69			33			23
Allowance for credit losses, end of period	$	12,001			11,867			11,270			10,557			10,525

Total earning assets	$	2,044,208			2,044,318			2,058,110			1,971,130			2,045,382
Goodwill		90,310			90,209			93,922			79,559			79,509
Core deposit intangibles		8,006			8,309			8,613			5,152			5,388
Mortgage servicing rights		3,098			3,296			3,522			3,751			4,106
Other non-earning assets		161,772			200,776			207,146			223,559			157,207
Total non-earning assets		263,186			302,590			313,203			312,021			246,210
Total assets		2,307,394			2,346,908			2,371,313			2,283,151			2,291,592
Total deposits		1,878,292			1,917,005			1,943,060			1,858,493			1,824,389
Short-term borrowings		—			—			—			10,000			97,395
Long-term debt		155,153			155,662			162,150			162,638			113,123
Total shareholders’ equity		253,036			253,246			245,214			233,663			235,303
Equity to assets ratio		10.97	%		10.79	%		10.34	%		10.23	%		10.27	%
Loans to deposits ratio		91.67	%		89.67	%		89.38	%		89.12	%		94.47	%

Tangible common equity (TCE)	$	154,721			154,728			142,679			148,952			150,407
Tangible common assets (TCA)		2,209,079			2,248,390			2,268,778			2,198,440			2,206,696
TCE/TCA		7.00	%		6.88	%		6.29	%		6.78	%		6.82	%

Selected Average Balance Sheet Items
Cash and cash equivalents	$	31,648			39,697			39,396			51,366			49,436			40,558			38,040
Debt and equity securities		311,323			314,255			309,668			310,771			310,274			311,476			318,082

Loans, including loans held for sale	$	1,751,644			1,770,330			1,818,253			1,722,568			1,622,911			1,765,672			1,467,981
Less allowance for credit losses on loans		11,856			11,281			11,386			10,523			8,826			11,856			8,046
Net loans	$	1,739,788			1,759,049			1,806,867			1,712,045			1,614,085			1,753,816			1,459,935

Total earning assets, including loans held for sale	$	2,072,397			2,099,954			2,142,064			2,056,656			1,952,121			2,092,695			1,799,102
Goodwill		90,218			94,006			91,733			79,526			74,203			88,888			62,967
Core deposit intangibles		8,154			8,458			8,302			5,275			3,887			7,552			1,565
Mortgage servicing rights		3,296			3,522			3,746			4,095			2,999			3,663			1,367
Other non-earning assets		158,022			159,736			158,937			149,214			149,267			156,528			136,564
Total non-earning assets		259,690			265,722			262,718			238,110			230,356			256,631			202,463
Total assets		2,332,087			2,365,676			2,404,782			2,294,766			2,182,477			2,349,326			2,001,565
Total deposits		1,901,442			1,936,601			1,965,987			1,824,546			1,759,677			1,907,208			1,640,000
Short-term borrowings		11			11			11,291			65,052			64,899			18,987			75,383
Long-term debt		155,573			158,419			162,555			150,177			115,907			156,683			56,798
Total shareholders’ equity		253,727			249,370			243,927			235,119			220,678			245,568			207,827
Equity to assets ratio		10.88	%		10.54	%		10.14	%		10.25	%		10.11	%		10.45	%		10.38	%
Loans to deposits ratio		92.12	%		91.41	%		92.49	%		94.41	%		92.23	%		92.58	%		89.51	%

Asset Quality
Net charge-offs	$	595		$	84			18			45			102			742			184
Other real estate owned		—			—			—			—			—			—			—

Non-accrual loans	$	4,528		$	3,001			2,845			2,719			80			4,528			80
Loans past due 90 days or more and still accruing		90			283			159			524			72			90			72
Total nonperforming loans	$	4,618		$	3,284		$	3,004		$	3,243		$	152		$	4,618		$	152

Net charge-offs to average loans		0.14	%		0.02	%		—	%		0.01	%		0.02	%		0.04	%		0.01	%
Allowance for credit losses on loans to total loans		0.70	%		0.69	%		0.65	%		0.64	%		0.61	%
Nonperforming loans to total loans		0.27	%		0.19	%		0.17	%		0.20	%		0.01	%
Nonperforming assets to total assets		0.20	%		0.14	%		0.13	%		0.14	%		0.01	%

	Three Months Ended															Twelve Months Ended
	12/31/2024			9/30/2024			6/30/2024			3/31/2024			12/31/2023			12/31/2024			12/31/2023
Assets Under Management
LCNB Corp. total assets	$	2,307,394			2,346,908			2,371,313			2,283,151			2,291,592
Trust and investments (fair value)		942,249			933,341			897,746			890,800			806,770
Mortgage loans serviced		397,625			366,175			422,951			386,490			391,800
Cash management		146,657			165,218			93,842			13,314			2,375
Brokerage accounts (fair value)		438,310			435,611			419,646			411,211			392,390
Total assets managed	$	4,232,235			4,247,253			4,205,498			3,984,966			3,884,927

Reconciliation of Net Income Less Tax-Effected Merger-Related Costs
Net income (loss)	$	6,120			4,532			925			1,915			(293	)		13,492			12,628
Merger expenses		66			281			2,320			775			3,914			3,442			4,656
Provision for credit losses on non-PCD loans		0			—			763			—			1,722			763			1,722
Loss on sale of below-market acquired loans		0			—			843			—			—			843			—
Tax effect		(13	)		(48	)		(773	)		(90	)		(1,102	)		(924	)		(1,172	)
Adjusted net income	$	6,173			4,765			4,078			2,600			4,241			17,616			17,834

Adjusted basic and diluted earnings per share	$	0.44			0.34			0.29			0.20			0.34			1.27			1.56
Adjusted return on average assets		1.05	%		0.80	%		0.68	%		0.46	%		0.77	%		0.75	%		0.89	%
Adjusted return on average equity		9.68	%		7.60	%		6.72	%		4.45	%		7.62	%		7.17	%		8.58	%

	Three Months Ended December 31,																Three Months Ended September 30,
	2024								2023								2024
	Average			Interest		Average			Average			Interest		Average			Average			Interest			Average
	Outstanding			Earned/		Yield/			Outstanding			Earned/		Yield/			Outstanding			Earned/			Yield/
	Balance			Paid		Rate			Balance			Paid		Rate			Balance			Paid			Rate
Loans (1)	$	1,751,644			24,617		5.59	%	$	1,622,911			21,113		5.16	%	$	1,770,330			24,342			5.47	%
Interest-bearing demand deposits		9,185			143		6.19	%		18,936			280		5.87	%		15,369			209			5.41	%
Interest-bearing time deposits		245			—		—			—			—		—	%		—			—			—	%
Federal Reserve Bank stock		6,414			193		11.97	%		4,930			144		11.59	%		6,393			(1	)		(0.06	)%
Federal Home Loan Bank stock		20,710			469		9.01	%		12,607			273		8.59	%		20,710			464			8.91	%
Investment securities:
Equity securities		5,043			65		5.13	%		4,415			62		5.57	%		5,026			40			3.17	%
Debt securities, taxable		260,429			1,251		1.91	%		265,736			1,273		1.90	%		262,220			1,181			1.79	%
Debt securities, non-taxable (2)		18,727			197		4.18	%		22,586			209		3.67	%		19,906			206			4.12	%
Total earnings assets		2,072,397			26,935		5.17	%		1,952,121			23,354		4.75	%		2,099,954			26,441			5.01	%
Non-earning assets		271,546								239,182								277,003
Allowance for credit losses		(11,856	)							(8,826	)							(11,281	)
Total assets	$	2,332,087							$	2,182,477							$	2,365,676

Interest-bearing demand and money market deposits	$	551,626			2,379		1.72	%	$	574,349			2,710		1.87	%	$	585,823			3,006			2.04	%
Savings deposits		366,310			241		0.26	%		402,791			323		0.32	%	$	367,045			274			0.30	%
IRA and time certificates		523,486			5,760		4.38	%		302,434			3,321		4.36	%	$	538,070			6,298			4.66	%
Short-term borrowings		11			1		36.17	%		64,899			918		5.61	%	$	11			—			—	%
Long-term debt		155,573			1,800		4.60	%		115,907			1,379		4.72	%	$	158,419			1,850			4.65	%
Total interest-bearing liabilities		1,597,006			10,181		2.54	%		1,460,380			8,651		2.35	%		1,649,368			11,428			2.76	%
Demand deposits		460,020								480,103								445,663
Other liabilities		21,334								21,316								21,275
Equity		253,727								220,678								249,370
Total liabilities and equity	$	2,332,087							$	2,182,477							$	2,365,676
Net interest rate spread (3)							2.63	%							2.40	%								2.25	%
Net interest income and net interest margin on a taxable-equivalent basis (4)					16,754		3.22	%					14,703		2.99	%					15,013			2.84	%
Ratio of interest-earning assets to interest-bearing liabilities		129.77	%							133.67	%							127.32	%

	(1)	Includes non-accrual loans and loans held for sale
	(2)	Income from tax-exempt securities is included in interest income on a taxable-equivalent basis. Interest income has been divided by a factor comprised of the complement of the incremental tax rate of 21%.
	(3)	The net interest spread is the difference between the average rate on total interest-earning assets and interest-bearing liabilities.
	(4)	The net interest margin is the taxable-equivalent net interest income divided by average interest-earning assets.

	For the Year Ended December 31,
	2024								2023
	Average			Interest		Average			Average			Interest		Average
	Outstanding			Earned/		Yield/			Outstanding			Earned/		Yield/
	Balance			Paid		Rate			Balance			Paid		Rate
Loans (1)	$	1,765,672			96,477		5.46	%		1,467,981			71,894		4.90	%
Interest-bearing demand deposits		15,486			890		5.75	%		13,039			734		5.63	%
Interest-bearing time deposits		61			—		—			—			—		—	%
Federal Reserve Bank stock		6,143			369		6.01	%		4,722			283		5.99	%
Federal Home Loan Bank stock		19,460			1,641		8.43	%		8,293			590		7.11	%
Investment securities:
Equity securities		5,012			184		3.67	%		3,879			175		4.51	%
Debt securities, taxable		261,856			4,847		1.85	%		277,157			5,235		1.89	%
Debt securities, non-taxable (2)		19,005			768		4.04	%		24,031			871		3.62	%
Total earnings assets		2,092,695			105,176		5.03	%		1,799,102			79,782		4.43	%
Non-earning assets		267,894								210,509
Allowance for credit losses		(11,263	)							(8,046	)
Total assets	$	2,349,326								2,001,565

Interest-bearing demand and money market deposits	$	607,144			12,877		2.12	%		535,865			7,850		1.46	%
Savings deposits		368,401			1,028		0.28	%		398,299			725		0.18	%
IRA and time certificates		481,516			21,933		4.55	%		233,604			7,996		3.42	%
Short-term borrowings		18,987			1,117		5.88	%		75,383			4,060		5.39	%
Long-term debt		156,683			7,265		4.64	%		56,798			2,619		4.61	%
Total interest-bearing liabilities		1,632,731			44,220		2.71	%		1,299,949			23,250		1.79	%
Demand deposits		450,147								472,232
Other liabilities		20,880								21,557
Equity		245,568								207,827
Total liabilities and equity	$	2,349,326								2,001,565
Net interest rate spread (3)							2.32	%							2.64	%
Net interest income and net interest margin on a taxable-equivalent basis (4)					60,956		2.91	%					56,532		3.14	%
Ratio of interest-earning assets to interest-bearing liabilities		128.17	%							138.40	%

	(1)	Includes non-accrual loans and loans held for sale
	(2)	Income from tax-exempt securities is included in interest income on a taxable-equivalent basis. Interest income has been divided by a factor comprised of the complement of the incremental tax rate of 21%.
	(3)	The net interest spread is the difference between the average rate on total interest-earning assets and interest-bearing liabilities.
	(4)	The net interest margin is the taxable-equivalent net interest income divided by average interest-earning assets.

Exhibit 99.2

LCNB CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

(Unaudited, dollars in thousands)

	December 31, 2024			December 31, 2023
	Unaudited			Audited
ASSETS:
Cash and due from banks	$	20,393			36,535
Interest-bearing demand deposits		15,351			3,188
Total cash and cash equivalents		35,744			39,723
Interest-bearing time deposits		250			—
Investment securities:
Equity securities with a readily determinable fair value, at fair value	$	1,363			1,336
Equity securities without a readily determinable fair value, at cost		3,666			3,666
Debt securities, available-for-sale, at fair value		258,327			276,601
Debt securities, held-to-maturity, at cost, net of allowance for credit losses of $5 at December 31, 2024 and 2023		16,324			16,858
Federal Reserve Bank stock, at cost		6,405			5,086
Federal Home Loan Bank stock, at cost		20,710			15,176
Loans, net of allowance for credit losses of $12,001 and $10,525 at December 31, 2024 and 2023, respectively		1,709,811			1,712,946
Loans held-for-sale		5,556			—
Premises and equipment, net		41,049			36,302
Operating lease right-of-use assets		5,785			6,000
Goodwill		90,310			79,509
Core deposit and other intangibles, net		11,104			9,494
Bank-owned life insurance		54,002			49,847
Interest receivable		8,701			8,405
Other assets, net		38,287			30,643
TOTAL ASSETS		2,307,394			2,291,592

LIABILITIES:
Deposits:
Noninterest-bearing	$	459,619			462,267
Interest-bearing		1,418,673			1,362,122
Total deposits		1,878,292			1,824,389
Short-term borrowings		—			97,395
Long-term debt		155,153			113,123
Operating lease liabilities		6,115			6,261
Accrued interest and other liabilities		14,798			15,121
TOTAL LIABILITIES		2,054,358			2,056,289

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 17,329,423 and 16,384,952 shares at December 31, 2024 and December 31, 2023, respectively; outstanding 14,118,040 and 13,173,569 shares at December 31, 2024 and December 31, 2023, respectively		186,937			173,637
Retained earnings		141,290			140,017
Treasury shares at cost, 3,211,383 and 3,211,383 shares at December 31, 2024 and December 31, 2023, respectively		(56,002	)		(56,015	)
Accumulated other comprehensive loss, net of taxes		(19,189	)		(22,336	)
TOTAL SHAREHOLDERS' EQUITY		253,036			235,303
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	2,307,394			2,291,592

Exhibit 99.2

LCNB CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)

	Three Months Ended					Twelve Months Ended
	December 31,					December 31,
	2024		2023			2024			2023
INTEREST INCOME:
Interest and fees on loans	$	24,617		21,113			96,477			71,894
Dividends on equity securities:
With a readily determinable fair value		10		9			38			43
Without a readily determinable fair value		55		53			146			132
Interest on debt securities:
Taxable		1,251		1,273			4,847			5,235
Non-taxable		156		165			607			688
Other investments		805		697			2,900			1,607
TOTAL INTEREST INCOME		26,894		23,310			105,015			79,599

INTEREST EXPENSE:
Interest on deposits		8,380		6,354			35,838			16,571
Interest on short-term borrowings		1		918			1,117			4,060
Interest on long-term debt		1,800		1,379			7,265			2,619
TOTAL INTEREST EXPENSE		10,181		8,651			44,220			23,250
NET INTEREST INCOME		16,713		14,659			60,795			56,349

PROVISION FOR CREDIT LOSSES		649		2,218			1,962			2,077
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		16,064		12,441			58,833			54,272

NON-INTEREST INCOME:
Fiduciary income		2,308		1,828			8,445			7,091
Service charges and fees on deposit accounts		1,939		1,532			6,759			5,856
Net losses from sales of debt securities, available-for-sale		—		—			(214	)		—
Bank-owned life insurance income		352		306			1,665			1,136
Net gains from sales of loans		1,236		659			3,433			697
Other operating income		153		281			316			631
TOTAL NON-INTEREST INCOME		5,988		4,606			20,404			15,411

NON-INTEREST EXPENSE:
Salaries and employee benefits		8,585		7,654			35,170			29,108
Equipment expenses		379		441			1,584			1,616
Occupancy expense, net		810		934			3,725			3,301
State financial institutions tax		472		439			1,881			1,628
Marketing		343		366			1,047			1,101
Amortization of intangibles		304		196			1,142			532
FDIC insurance premiums, net		450		269			1,895			932
Contracted services		777		798			3,212			2,776
Merger-related expenses		66		3,914			3,442			4,656
Other non-interest expense		2,406		2,565			10,178			8,773
TOTAL NON-INTEREST EXPENSE		14,592		17,576			63,276			54,423
INCOME (LOSS) BEFORE INCOME TAXES		7,460		(529	)		15,961			15,260
PROVISION FOR (BENEFIT FROM) INCOME TAXES		1,340		(236	)		2,469			2,632
NET INCOME (LOSS)	$	6,120		(293	)		13,492			12,628

Earnings (Loss) per common share:
Basic		0.44		(0.02	)		0.97			1.10
Diluted		0.44		(0.02	)		0.97			1.10
Weighted average common shares outstanding:
Basic		14,111,636		12,378,289			13,849,578			11,417,857
Diluted		14,111,636		12,378,289			13,849,578			11,417,857