ex_792692.htm

EX-99.2 3 ex_792692.htm EXHIBIT 99.2 ex_792692.htm

Exhibit 99.2

LCNB Corp. and Subsidiaries

Financial Highlights

(Dollars in thousands, except per share amounts)

(Unaudited)

	Three Months Ended
	3/31/2025			12/31/2024			9/30/2024			6/30/2024			3/31/2024
Condensed Income Statement
Interest income	$	25,316			26,894			26,398			26,965			24,758
Interest expense		9,017			10,181			11,428			11,748			10,863
Net interest income		16,299			16,713			14,970			15,217			13,895
Provision for credit losses		197			649			660			528			125
Net interest income after provision for credit losses		16,102			16,064			14,310			14,689			13,770
Non-interest income		5,222			5,988			6,407			4,080			3,929
Non-interest expense		15,809			14,592			15,387			17,825			15,472
Income before income taxes		5,515			7,460			5,330			944			2,227
Provision for income taxes		906			1,340			798			19			312
Net income	$	4,609		$	6,120		$	4,532		$	925		$	1,915

Supplemental Income Statement Information
Accretion income on acquired loans	$	692			1,271			800			1,248			776
Amortization expenses on acquired interest-bearing liabilities		—			119			378			638			459
Tax-equivalent net interest income		16,338			16,754			15,013			15,256			13,933
Pre-provision, pre-tax net income		5,712			8,109			5,990			1,472			2,352

Per Share Data
Dividends per share	$	0.22			0.22			0.22			0.22			0.22
Basic earnings per common share	$	0.33			0.44			0.31			0.07			0.15
Diluted earnings per common share	$	0.33			0.44			0.31			0.07			0.15
Book value per share	$	18.26			17.92			17.95			17.33			17.67
Tangible book value per share	$	11.34			10.96			10.97			10.08			11.26
Weighted average common shares outstanding:
Basic		14,051,310			14,027,043			14,018,765			13,948,671			13,112,302
Diluted		14,051,310			14,027,043			14,018,765			13,948,671			13,112,302
Shares outstanding at period end		14,166,915			14,118,040			14,110,210			14,151,755			13,224,276

Selected Financial Ratios
Return on average assets		0.81	%		1.04	%		0.76	%		0.15	%		0.34	%
Return on average equity		7.33	%		9.60	%		7.23	%		1.53	%		3.28	%
Return on average tangible common equity		11.91	%		15.67	%		12.27	%		2.59	%		5.12	%
Dividend payout ratio		66.67	%		50.00	%		70.97	%		314.29	%		146.67	%
Net interest margin (tax equivalent)		3.25	%		3.22	%		2.84	%		2.86	%		2.72	%
Efficiency ratio (tax equivalent)		73.33	%		64.16	%		71.83	%		92.19	%		86.62	%

Selected Balance Sheet Items
Cash and cash equivalents	$	37,670			35,744			39,374			34,872			32,951
Debt and equity securities		305,644			306,795			313,545			312,241			306,775

Loans:
Commercial and industrial	$	112,580			118,494			119,079			125,703			122,229
Commercial, secured by real estate		1,110,276			1,113,921			1,105,405			1,117,798			1,099,601
Residential real estate		463,379			456,298			459,740			458,949			398,250
Consumer		19,030			20,474			22,088			22,912			24,137
Agricultural		13,161			13,242			13,113			11,685			12,647
Other, including deposit overdrafts		133			179			496			233			73
Deferred net origination fees		(929	)		(796	)		(861	)		(533	)		(583	)
Loans, gross		1,717,630			1,721,812			1,719,060			1,736,747			1,656,354
Less allowance for credit losses		12,124			12,001			11,867			11,270			10,557
Loans, net	$	1,705,506		$	1,709,811		$	1,707,193		$	1,725,477		$	1,645,797

Loans held for sale	$	6,098			5,556			35,687			44,002			75,581

	Three Months Ended
	3/31/2025			12/31/2024			9/30/2024			6/30/2024			3/31/2024
Selected Balance Sheet Items, continued

Allowance for Credit Losses on Loans:
Allowance for credit losses, beginning of period	$	12,001			11,867			11,270			10,557			10,525
Fair value adjustment for purchased credit deteriorated loans		—			—			—			189			—
Provision for credit losses on loans		162			728			681			542			77
Losses charged off		(53	)		(616	)		(122	)		(87	)		(78	)
Recoveries		14			22			38			69			33
Allowance for credit losses, end of period	$	12,124			12,001			11,867			11,270			10,557

Total earning assets	$	2,038,666			2,044,208			2,044,318			2,058,110			1,971,130
Goodwill		90,310			90,310			90,209			93,922			79,559
Core deposit intangibles		7,708			8,006			8,309			8,613			5,152
Mortgage servicing rights		2,908			3,098			3,296			3,522			3,751
Other non-earning assets		163,153			161,772			200,776			207,146			223,559
Total non-earning assets		264,079			263,186			302,590			313,203			312,021
Total assets		2,302,745			2,307,394			2,346,908			2,371,313			2,283,151
Total deposits		1,921,649			1,878,292			1,917,005			1,943,060			1,858,493
Short-term borrowings		—			—			—			—			10,000
Long-term debt		104,637			155,153			155,662			162,150			162,638
Total shareholders’ equity		258,651			253,036			253,246			245,214			233,663
Equity to assets ratio		11.23	%		10.97	%		10.79	%		10.34	%		10.23	%
Loans to deposits ratio		89.38	%		91.67	%		89.67	%		89.38	%		89.12	%

Tangible common equity (TCE)	$	160,633			154,721			154,728			142,679			148,952
Tangible common assets (TCA)		2,204,727			2,209,079			2,248,390			2,268,778			2,198,440
TCE/TCA		7.29	%		7.00	%		6.88	%		6.29	%		6.78	%

Selected Average Balance Sheet Items
Cash and cash equivalents	$	36,125			31,648			39,697			39,396			51,366
Debt and equity securities		304,033			311,323			314,255			309,668			310,771

Loans, including loans held for sale	$	1,721,894			1,751,644			1,770,330			1,818,253			1,722,568
Less allowance for credit losses on loans		11,996			11,856			11,281			11,386			10,523
Net loans	$	1,709,898			1,739,788			1,759,049			1,806,867			1,712,045

Total earning assets	$	2,036,514			2,072,397			2,099,954			2,142,064			2,056,656
Goodwill		90,310			90,218			94,006			91,733			79,526
Core deposit intangibles		7,854			8,154			8,458			8,302			5,275
Mortgage servicing rights		3,099			3,296			3,522			3,746			4,094
Other non-earning assets		160,281			158,022			159,736			158,937			149,215
Total non-earning assets		261,544			259,690			265,722			262,718			238,110
Total assets		2,298,058			2,332,087			2,365,676			2,404,782			2,294,766
Total deposits		1,896,443			1,901,442			1,936,601			1,965,987			1,824,546
Short-term borrowings		72			11			11			11,291			65,052
Long-term debt		127,289			155,573			158,419			162,555			150,177
Total shareholders’ equity		255,120			253,727			249,370			243,927			235,119
Equity to assets ratio		11.10	%		10.88	%		10.54	%		10.14	%		10.25	%
Loans to deposits ratio		90.80	%		92.12	%		91.41	%		92.49	%		94.41	%

Asset Quality
Net charge-offs	$	39			595			84			18			45
Other real estate owned		—			—			—			—			—

Non-accrual loans	$	4,710			4,528			3,001			2,845			2,719
Loans past due 90 days or more and still accruing		181			90			283			159			524
Total nonperforming loans	$	4,891		$	4,618		$	3,284		$	3,004		$	3,243

Net charge-offs to average loans		0.01	%		0.14	%		0.02	%		0.00	%		0.01	%
Allowance for credit losses on loans to total loans		0.71	%		0.70	%		0.69	%		0.65	%		0.64	%
Nonperforming loans to total loans		0.28	%		0.27	%		0.19	%		0.17	%		0.20	%
Nonperforming assets to total assets		0.21	%		0.20	%		0.14	%		0.13	%		0.14	%

	Three Months Ended
	3/31/2025		12/31/2024		9/30/2024		6/30/2024		3/31/2024
Assets Under Management
LCNB Corp. total assets	$	2,302,745		2,307,394		2,346,908		2,371,313		2,283,151
Trust and investments (fair value)		957,359		942,249		933,341		897,746		890,800
Mortgage loans serviced		354,593		397,625		366,175		422,951		386,490
Cash management		100,830		146,657		165,218		93,842		13,314
Brokerage accounts (fair value)		441,621		438,310		435,611		419,646		411,211
Total assets managed	$	4,157,148		4,232,235		4,247,253		4,205,498		3,984,966

	Three Months Ended March 31,																	Three Months Ended December 31,
	2025								2024									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)	$	1,721,894			23,181		5.46	%	$	1,722,568			22,682			5.30	%	$	1,751,644			24,617		5.59	%
Interest-bearing demand deposits		10,337			130		5.10	%		23,317			324			5.59	%		9,185			143		6.19	%
Interest-bearing time deposits		250			—		—			—			—			—	%		245			—		—	%
Federal Reserve Bank stock		6,405			95		6.02	%		5,509			(4	)		(0.29	)%		6,414			193		11.97	%
Federal Home Loan Bank stock		20,710			469		9.18	%		16,239			341			8.45	%		20,710			469		9.01	%
Investment securities:
Equity securities		5,043			39		3.14	%		4,995			40			3.22	%		5,043			65		5.13	%
Debt securities, taxable		254,715			1,256		2.00	%		265,164			1,232			1.87	%		260,429			1,251		1.91	%
Debt securities, non-taxable (2)		17,160			185		4.37	%		18,864			181			3.86	%		18,727			197		4.18	%
Total earnings assets		2,036,514			25,355		5.05	%		2,056,656			24,796			4.85	%		2,072,397			26,935		5.17	%
Non-earning assets		273,545								248,633									271,546
Allowance for credit losses		(12,001	)							(10,523	)								(11,856	)
Total assets	$	2,298,058							$	2,294,766								$	2,332,087

Interest-bearing demand and money market deposits	$	570,473			2,337		1.66	%	$	643,199			3,917			2.45	%	$	551,626			2,379		1.72	%
Savings deposits		365,876			195		0.22	%		368,049			206			0.23	%	$	366,310			241		0.26	%
IRA and time certificates		497,178			5,027		4.10	%		370,130			4,067			4.42	%	$	523,486			5,760		4.38	%
Short-term borrowings		72			1		5.63	%		65,052			935			5.78	%	$	43			1		5.11	%
Long-term debt		127,289			1,457		4.64	%		150,177			1,738			4.65	%	$	155,573			1,800		4.60	%
Total interest-bearing liabilities		1,560,888			9,017		2.34	%		1,596,607			10,863			2.74	%		1,597,038			10,181		2.54	%
Demand deposits		462,916								443,168									460,020
Other liabilities		19,134								19,872									21,302
Equity		255,120								235,119									253,727
Total liabilities and equity	$	2,298,058							$	2,294,766								$	2,332,087
Net interest rate spread (3)							2.71	%								2.11	%							2.63	%
Net interest income and net interest margin on a taxable-equivalent basis (4)					16,338		3.25	%					13,933			2.72	%					16,754		3.22	%
Ratio of interest-earning assets to interest-bearing liabilities		130.47	%							128.81	%								129.77	%

	(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)

	March 31, 2025			December 31, 2024
	Unaudited			Audited
ASSETS:
Cash and due from banks	$	28,626			20,393
Interest-bearing demand deposits		9,044			15,351
Total cash and cash equivalents		37,670			35,744
Interest-bearing time deposits		250			250
Investment securities:
Equity securities with a readily determinable fair value, at fair value	$	1,387			1,363
Equity securities without a readily determinable fair value, at cost		3,666			3,666
Debt securities, available-for-sale, at fair value		255,891			258,327
Debt securities, held-to-maturity, at cost, net of allowance for credit losses of $5 at March 31, 2025 and December 31, 2024		17,585			16,324
Federal Reserve Bank stock, at cost		6,405			6,405
Federal Home Loan Bank stock, at cost		20,710			20,710
Loans held for sale		6,098			5,556
Loans, net of allowance for credit losses of $12,124 and $12,001 at March 31, 2025 and December 31, 2024, respectively		1,705,506			1,709,811
Premises and equipment, net		39,972			41,049
Operating lease right-of-use assets		5,935			5,785
Goodwill		90,310			90,310
Core deposit and other intangibles, net		10,616			11,104
Bank-owned life insurance		54,348			54,002
Interest receivable		9,013			8,701
Other assets, net		37,383			38,287
TOTAL ASSETS	$	2,302,745			2,307,394

LIABILITIES:
Deposits:
Noninterest-bearing	$	464,059			459,619
Interest-bearing		1,457,590			1,418,673
Total deposits		1,921,649			1,878,292
Short-term borrowings		—			—
Long-term debt		104,637			155,153
Operating lease liabilities		6,299			6,115
Accrued interest and other liabilities		11,509			14,798
TOTAL LIABILITIES		2,044,094			2,054,358

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 17,378,298 and 17,329,423 shares at March 31, 2025 and December 31, 2024, respectively; outstanding 14,166,915 and 14,118,040 shares at March 31, 2025 and December 31, 2024, respectively		187,369			186,937
Retained earnings		142,811			141,290
Treasury shares at cost, 3,211,383 shares at March 31, 2025 and December 31, 2024		(56,002	)		(56,002	)
Accumulated other comprehensive loss, net of taxes		(15,527	)		(19,189	)
TOTAL SHAREHOLDERS' EQUITY		258,651			253,036
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	2,302,745			2,307,394

Exhibit 99.2

LCNB CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)

	Three Months Ended
	March 31,
	2025		2024
INTEREST INCOME:
Interest and fees on loans	$	23,181		22,682
Dividends on equity securities:
With a readily determinable fair value		10		9
Without a readily determinable fair value		29		31
Interest on debt securities:
Taxable		1,256		1,232
Non-taxable		146		143
Other investments		694		661
TOTAL INTEREST INCOME		25,316		24,758

INTEREST EXPENSE:
Interest on deposits		7,559		8,190
Interest on short-term borrowings		1		935
Interest on long-term debt		1,457		1,738
TOTAL INTEREST EXPENSE		9,017		10,863
NET INTEREST INCOME		16,299		13,895

PROVISION FOR CREDIT LOSSES		197		125
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		16,102		13,770

NON-INTEREST INCOME:
Fiduciary income		2,164		1,973
Service charges and fees on deposit accounts		1,766		1,384
Net losses from sales of debt securities, available-for-sale		—		(214	)
Bank-owned life insurance income		346		318
Net gains from sales of loans		841		522
Net other operating income		105		(54	)
TOTAL NON-INTEREST INCOME		5,222		3,929

NON-INTEREST EXPENSE:
Salaries and employee benefits		9,172		8,554
Equipment expenses		382		390
Occupancy expense, net		1,010		1,005
State financial institutions tax		453		428
Marketing		315		174
Amortization of intangibles		297		236
FDIC insurance premiums, net		410		504
Contracted services		870		784
Merger-related expenses		—		775
Other non-interest expense		2,900		2,622
TOTAL NON-INTEREST EXPENSE		15,809		15,472
INCOME BEFORE INCOME TAXES		5,515		2,227
PROVISION FOR INCOME TAXES		906		312
NET INCOME	$	4,609		1,915

Earnings per common share:
Basic		0.33		0.15
Diluted		0.33		0.15
Weighted average common shares outstanding:
Basic		14,051,310		13,112,302
Diluted		14,051,310		13,112,302