LCNB
$14.99
Lcnb
$.19
1.28%
Earnings Details
3rd Quarter September 2020
Tuesday, October 20, 2020 7:36:00 PM
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Summary

Lcnb (LCNB) Recent Earnings

Lcnb (LCNB) reported 3rd Quarter September 2020 earnings of $0.33 per share on revenue of $19.6 million. The consensus earnings estimate was $0.31 per share on revenue of $17.5 million. Revenue fell 0.4% compared to the same quarter a year ago.

LCNB Corp is a financial holding company, which through its subsidiaries operates as a full service community bank offering a range of commercial and personal banking services.

Results
Reported Earnings
$0.33
Earnings Whisper
-
Consensus Estimate
$0.31
Reported Revenue
$19.6 Mil
Revenue Estimate
$17.5 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

LCNB CORP. Reports Financial Results for the Three and Nine Months Ended September 30, 2020

LEBANON, Ohio--(BUSINESS WIRE)--LCNB Corp. ("LCNB") (NASDAQ: LCNB) today announced financial results for the three and nine months ended September 30, 2020.

Net income for the third quarter 2020 was $4,250,000, compared to $4,727,000 for the same period last year. Earnings per basic and diluted share for the third quarter 2020 were $0.33, compared to $0.36 for the same period last year. Net income for the nine-month period ended September 30, 2020 was $14,333,000, compared to $14,082,000 for the same period last year. Earnings per basic and diluted share for the nine-month period ended September 30, 2020 were $1.11 compared to $1.07 for the same period last year.

Earnings, before provisions for loan losses and income taxes, increased 3.4% to $6,154,000 for the third quarter 2020 compared to $5,952,000 for the same period last year. For the nine-month period ended September 30, 2020, earnings, before provisions for loan losses and income taxes, increased 12.4% to $19,300,000, compared to $17,170,000 for the nine-month period ended September 30, 2019.

Commenting on the financial results, LCNB President and Chief Executive Officer Eric Meilstrup said, “LCNB’s third quarter financial results demonstrate the resiliency of our business, employees, customers, and communities, as we navigate the unprecedented impacts of the COVID-19 pandemic. While our asset quality remains relatively stable, we prudently increased our allowance for loan and lease losses to account for uncertainty regarding the long-term economic impacts of the COVID-19 crisis. I am encouraged that our core earnings before provision and tax expenses increased 3.4% during the third quarter and are up 12.4% year-to-date, as we benefit from our diverse non-interest income generating businesses and improvements in our cost of funds. Third quarter non-interest income increased 27.5% over the prior year period, and now represents 21.8% of total revenues, compared to 17.0% of total revenues in the 2019 third quarter primarily due to strong residential mortgage demand and higher fiduciary income.”

Mr. Meilstrup continued, “We are working hard to support our local communities and I am encouraged by the growth we experienced in net loans and total deposits which increased 7.6% and 6.1%, respectively, since December 31, 2019. Since the COVID-19 pandemic began, we have also supported our communities by offering customers impacted by the COVID-19 crisis the ability to defer certain loan payments and over the past three months we have experienced a material decline in the amount of deferrals. Overall, I am pleased with the underlying performance of our loan portfolio as third quarter 2020 net charge-offs were only $18,000, compared to $209,000 for the same period last year.”

“As we enter the fourth quarter, we remain focused on providing our communities with personalized financial services and we have started assisting our Paycheck Protection Program loan customers through the Small Business Administration forgiveness process. I am extremely proud of the continued dedication and hard work of LCNB’s employees and the positive contributions they provide our customers and communities,” concluded Mr. Meilstrup.

Net interest income for the three months ended September 30, 2020 was $13,529,000, compared to $13,578,000 for the comparable period in 2019. The slight decline for the three-month period was primarily due to market driven decreases in the average rates earned on loans and investments, partially offset by growth in the average balance of the loan portfolio. Net interest income for the nine-month period ended September 30, 2020 increased $1,146,000 to $41,705,000, as compared to the nine month period ended September 30, 2019. The increase for the nine-month period was primarily 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. Favorably contributing to the variances for both the three and nine month periods were market driven decreases in the average rates paid on deposits.

The provision for loan losses for the three and nine months ended September 30, 2020 were, respectively, $712,000 and $1,952,000 greater than the comparable periods in 2019 partially due to adjustments for estimated impacts from the economic downturn caused by the COVID-19 pandemic. Non-accrual loans and loans past due 90 days or more and still accruing interest increased $994,000, from $3,210,000, or 0.26%, of total loans at December 31, 2019 to $4,204,000, or 0.31%, of total loans at September 30, 2020. The increase was primarily due to three loans that were newly classified during 2020.

Non-interest income for the three and nine months ended September 30, 2020 was, respectively, $922,000 and $2,310,000 greater than the comparable periods in 2019 primarily due to increases in fiduciary income and gains from sales of loans, partially offset by a decrease in service charges and fees on deposit accounts. The increase for the nine month period included gains from the sale of equity securities, which is recorded in other operating income in the consolidated condensed statements of income, gains from the sale of debt securities, and an increase in income from bank owned life insurance. Income from bank owned life insurance increased year-to-date 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 nine months ended September 30, 2020 was, respectively, $671,000 and $1,326,000 greater than the comparable periods in 2019, primarily due to increases in salaries and employee benefits and other non-interest expenses. 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 employee benefits. Partially offsetting the increase for the nine month period was a decrease in FDIC insurance premiums due to a small bank assessment credit received during both the first and second quarters 2020. LCNB used the credit in full during those two quarters and the premium payment returned to a normal level for the third quarter 2020.

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

 

Nine Months Ended

 

9/30/2020

 

6/30/2020

 

3/31/2020

 

12/31/2019

 

9/30/2019

 

9/30/2020

 

9/30/2019

Condensed Income Statement

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

$

15,322

 

 

15,957

 

 

16,556

 

 

16,424

 

 

16,329

 

 

47,835

 

 

48,770

 

Interest expense

1,793

 

 

1,959

 

 

2,378

 

 

2,577

 

 

2,751

 

 

6,130

 

 

8,211

 

Net interest income

13,529

 

 

13,998

 

 

14,178

 

 

13,847

 

 

13,578

 

 

41,705

 

 

40,559

 

Provision (credit) for loan losses

976

 

 

16

 

 

1,173

 

 

(6)

 

 

264

 

 

2,165

 

 

213

 

Net interest income after provision

12,553

 

 

13,982

 

 

13,005

 

 

13,853

 

 

13,314

 

 

39,540

 

 

40,346

 

Non-interest income

4,278

 

 

3,319

 

 

3,839

 

 

3,222

 

 

3,356

 

 

11,436

 

 

9,126

 

Non-interest expense

11,653

 

 

11,116

 

 

11,072

 

 

11,007

 

 

10,982

 

 

33,841

 

 

32,515

 

Income before income taxes

5,178

 

 

6,185

 

 

5,772

 

 

6,068

 

 

5,688

 

 

17,135

 

 

16,957

 

Provision for income taxes

928

 

 

1,128

 

 

746

 

 

1,238

 

 

961

 

 

2,802

 

 

2,875

 

Net income

$

4,250

 

 

5,057

 

 

5,026

 

 

4,830

 

 

4,727

 

 

14,333

 

 

14,082

 

Amort/Accret income on acquired loans

$

181

 

 

294

 

 

667

 

 

400

 

 

302

 

 

1,142

 

 

881

 

Amort/Accret expenses on acquired
interest-bearing liabilities

$

 

 

2

 

 

3

 

 

3

 

 

4

 

 

5

 

 

290

 

Tax-equivalent net interest income

$

13,594

 

 

14,066

 

 

14,254

 

 

13,937

 

 

13,679

 

 

41,914

 

 

40,915

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Data

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends per share

$

0.18

 

 

0.18

 

 

0.18

 

 

0.18

 

 

0.17

 

 

0.54

 

 

0.51

 

Basic earnings per common share

$

0.33

 

 

0.39

 

 

0.39

 

 

0.37

 

 

0.36

 

 

1.11

 

 

1.07

 

Diluted earnings per common share

$

0.33

 

 

0.39

 

 

0.39

 

 

0.37

 

 

0.36

 

 

1.11

 

 

1.07

 

Book value per share

$

18.46

 

 

18.27

 

 

18.00

 

 

17.63

 

 

17.44

 

 

18.46

 

 

17.44

 

Tangible book value per share

$

13.66

 

 

13.47

 

 

13.18

 

 

12.78

 

 

12.57

 

 

13.66

 

 

12.57

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

12,937,865

 

 

12,940,975

 

 

12,926,077

 

 

12,912,106

 

 

12,932,950

 

 

12,934,987

 

 

13,135,134

 

Diluted

12,937,901

 

 

12,941,001

 

 

12,927,666

 

 

12,916,000

 

 

12,937,145

 

 

12,935,388

 

 

13,139,100

 

Shares outstanding at period end

12,926,686

 

 

12,975,879

 

 

12,969,076

 

 

12,936,783

 

 

12,927,463

 

 

12,926,686

 

 

12,927,463

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

0.97

%

 

1.19

%

 

1.23

%

 

1.17

%

 

1.13

%

 

1.13

%

 

1.15

%

Return on average equity

7.08

%

 

8.63

%

 

8.75

%

 

8.42

%

 

8.33

%

 

8.14

%

 

8.42

%

Return on average tangible equity

9.56

%

 

11.74

%

 

12.00

%

 

11.63

%

 

11.57

%

 

11.07

%

 

11.75

%

Dividend payout ratio

54.55

%

 

46.15

%

 

46.15

%

 

48.65

%

 

47.22

%

 

48.65

%

 

47.66

%

Net interest margin (tax equivalent)

3.47

%

 

3.70

%

 

3.92

%

 

3.76

%

 

3.67

%

 

3.69

%

 

3.70

%

Efficiency ratio (tax equivalent)

65.20

%

 

63.94

%

 

61.19

%

 

64.15

%

 

64.47

%

 

63.43

%

 

64.98

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Balance Sheet Items

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

24,485

 

 

42,736

 

 

24,795

 

 

20,765

 

 

22,826

 

 

 

 

 

Debt and equity securities

199,044

 

 

194,883

 

 

183,123

 

 

219,791

 

 

239,730

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

$

124,628

 

 

125,492

 

 

85,356

 

 

78,306

 

 

71,576

 

 

 

 

 

Commercial, secured by real estate

843,943

 

 

833,286

 

 

829,461

 

 

804,953

 

 

797,842

 

 

 

 

 

Residential real estate

327,689

 

 

334,349

 

 

318,009

 

 

322,533

 

 

320,703

 

 

 

 

 

Consumer

36,504

 

 

32,859

 

 

28,955

 

 

25,232

 

 

23,918

 

 

 

 

 

Agricultural

8,920

 

 

11,071

 

 

10,519

 

 

11,509

 

 

11,525

 

 

 

 

 

Other, including deposit overdrafts

403

 

 

283

 

 

436

 

 

1,193

 

 

456

 

 

 

 

 

Deferred net origination fees

(1,927)

 

 

(1,902)

 

 

(349)

 

 

(275)

 

 

(128)

 

 

 

 

 

Loans, gross

1,340,160

 

 

1,335,438

 

 

1,272,387

 

 

1,243,451

 

 

1,225,892

 

 

 

 

 

Less allowance for loan losses

5,974

 

 

5,016

 

 

5,008

 

 

4,045

 

 

4,167

 

 

 

 

 

Loans, net

$

1,334,186

 

 

1,330,422

 

 

1,267,379

 

 

1,239,406

 

 

1,221,725

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total earning assets

$

1,547,538

 

 

1,554,537

 

 

1,462,485

 

 

1,466,988

 

 

1,470,074

 

 

 

 

 

Total assets

1,725,615

 

 

1,735,332

 

 

1,636,280

 

 

1,639,308

 

 

1,644,447

 

 

 

 

 

Total deposits

1,430,394

 

 

1,438,921

 

 

1,345,872

 

 

1,348,280

 

 

1,355,383

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

9/30/2020

 

6/30/2020

 

3/31/2020

 

12/31/2019

 

9/30/2019

 

9/30/2020

 

9/30/2019

Selected Balance Sheet Items, continued

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt

31,999

 

 

33,998

 

 

35,996

 

 

40,994

 

 

41,990

 

 

 

 

 

Total shareholders’ equity

238,585

 

 

237,047

 

 

233,478

 

 

228,048

 

 

225,492

 

 

 

 

 

Equity to assets ratio

13.83

%

 

13.66

%

 

14.27

%

 

13.91

%

 

13.71

%

 

 

 

 

Loans to deposits ratio

93.69

%

 

92.81

%

 

94.54

%

 

92.22

%

 

90.45

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity (TCE)

$

176,624

 

 

174,823

 

 

170,994

 

 

165,304

 

 

162,485

 

 

 

 

 

Tangible common assets (TCA)

1,663,654

 

 

1,673,108

 

 

1,573,796

 

 

1,576,564

 

 

1,581,440

 

 

 

 

 

TCE/TCA

10.62

%

 

10.45

%

 

10.87

%

 

10.49

%

 

10.27

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Average Balance Sheet Items

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

42,661

 

 

46,292

 

 

25,101

 

 

26,501

 

 

28,293

 

 

37,988

 

 

27,600

 

Debt and equity securities

197,788

 

 

182,371

 

 

204,912

 

 

231,115

 

 

243,553

 

 

195,033

 

 

253,113

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

$

1,339,608

 

 

1,318,753

 

 

1,252,554

 

 

1,230,845

 

 

1,227,806

 

 

1,303,770

 

 

1,218,183

 

Less allowance for loan losses

5,250

 

 

4,998

 

 

3,938

 

 

4,076

 

 

3,986

 

 

4,730

 

 

4,049

 

Net loans

$

1,334,358

 

 

1,313,755

 

 

1,248,616

 

 

1,226,769

 

 

1,223,820

 

 

1,299,040

 

 

1,214,134

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total earning assets

$

1,558,886

 

 

1,528,610

 

 

1,462,946

 

 

1,469,469

 

 

1,480,096

 

 

1,516,967

 

 

1,479,983

 

Total assets

1,741,998

 

 

1,704,303

 

 

1,638,486

 

 

1,643,793

 

 

1,654,034

 

 

1,695,103

 

 

1,642,186

 

Total deposits

1,445,573

 

 

1,412,082

 

 

1,346,770

 

 

1,352,101

 

 

1,365,702

 

 

1,401,636

 

 

1,350,678

 

Short-term borrowings

0

 

 

82

 

 

1,415

 

 

622

 

 

468

 

 

497

 

 

7,898

 

Long-term debt

33,020

 

 

34,964

 

 

38,325

 

 

41,742

 

 

41,988

 

 

35,427

 

 

43,067

 

Total shareholders’ equity

238,990

 

 

235,587

 

 

231,058

 

 

227,595

 

 

225,216

 

 

235,225

 

 

223,644

 

Equity to assets ratio

13.72

%

 

13.82

%

 

14.10

%

 

13.85

%

 

13.62

%

 

13.88

%

 

13.62

%

Loans to deposits ratio

92.67

%

 

93.39

%

 

93.00

%

 

91.03

%

 

89.90

%

 

93.02

%

 

90.19

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs

$

18

 

 

8

 

 

210

 

 

115

 

 

209

 

 

236

 

 

92

 

Other real estate owned

 

 

 

 

 

 

197

 

 

197

 

 

 

 

197

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans

4,110

 

 

3,876

 

 

2,829

 

 

3,210

 

 

3,523

 

 

4,110

 

 

3,523

 

Loans past due 90 days or more and
still accruing

94

 

 

38

 

 

39

 

 

 

 

 

 

94

 

 

 

Total nonperforming loans

$

4,204

 

 

3,914

 

 

2,868

 

 

3,210

 

 

3,523

 

 

4,204

 

 

3,523

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs to average loans

0.01

%

 

0.00

%

 

0.07

%

 

0.04

%

 

0.07

%

 

0.02

%

 

0.01

%

Allowance for loan losses to total loans

0.45

%

 

0.38

%

 

0.39

%

 

0.33

%

 

0.34

%

 

0.45

%

 

0.34

%

Nonperforming loans to total loans

0.31

%

 

0.29

%

 

0.23

%

 

0.26

%

 

0.29

%

 

0.31

%

 

0.29

%

Nonperforming assets to total assets

0.24

%

 

0.23

%

 

0.18

%

 

0.21

%

 

0.23

%

 

0.24

%

 

0.23

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets Under Management

 

 

 

 

 

 

 

 

 

 

 

 

 

LCNB Corp. total assets

$

1,725,615

 

 

1,735,332

 

 

1,636,280

 

 

1,639,308

 

 

1,644,447

 

 

 

 

 

Trust and investments (fair value)

524,502

 

 

516,076

 

 

455,974

 

 

435,664

 

 

411,724

 

 

 

 

 

Mortgage loans serviced

120,546

 

 

100,189

 

 

94,805

 

 

93,596

 

 

90,784

 

 

 

 

 

Cash management

119,520

 

 

116,615

 

 

77,471

 

 

75,948

 

 

117,530

 

 

 

 

 

Brokerage accounts (fair value)

267,307

 

 

255,276

 

 

235,278

 

 

268,059

 

 

262,038

 

 

 

 

 

Total assets managed

$

2,757,490

 

 

2,723,488

 

 

2,499,808

 

 

2,512,575

 

 

2,526,523

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LCNB CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

(Dollars in thousands)

 

 

September 30,
2020
(Unaudited)

 

December 31,
2019

ASSETS:

 

 

 

Cash and due from banks

$

16,151

 

 

17,019

 

Interest-bearing demand deposits

8,334

 

 

3,746

 

Total cash and cash equivalents

24,485

 

 

20,765

 

Investment securities:

 

 

 

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

2,213

 

 

2,312

 

Equity securities without a readily determinable fair value, at cost

2,099

 

 

2,099

 

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

157,936

 

 

178,000

 

Debt securities, held-to-maturity, at cost

26,941

 

 

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

1,334,186

 

 

1,239,406

 

Premises and equipment, net

35,309

 

 

34,787

 

Operating leases right of use asset

5,729

 

 

5,444

 

Goodwill

59,221

 

 

59,221

 

Core deposit and other intangibles

3,539

 

 

4,006

 

Bank owned life insurance

41,871

 

 

41,667

 

Interest receivable

9,559

 

 

3,926

 

Other assets

12,672

 

 

10,295

 

TOTAL ASSETS

$

1,725,615

 

 

1,639,308

 

 

 

 

 

LIABILITIES:

 

 

 

Deposits:

 

 

 

Noninterest-bearing

$

426,989

 

 

354,391

 

Interest-bearing

1,003,405

 

 

993,889

 

Total deposits

1,430,394

 

 

1,348,280

 

Long-term debt

31,999

 

 

40,994

 

Operating lease liabilities

5,790

 

 

5,446

 

Accrued interest and other liabilities

18,847

 

 

16,540

 

TOTAL LIABILITIES

1,487,030

 

 

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; issued 14,157,303 and
14,111,810 shares at September 30, 2020 and December 31, 2019, respectively; outstanding
12,926,686 and 12,936,783 shares at September 30, 2020 and December 31, 2019, respectively

142,310

 

 

141,791

 

Retained earnings

111,760

 

 

104,431

 

Treasury shares at cost, 1,230,617 and 1,175,027 shares at September 30, 2020 and
December 31, 2019, respectively

(19,639)

 

 

(18,847)

 

Accumulated other comprehensive income, net of taxes

4,154

 

 

673

 

TOTAL SHAREHOLDERS' EQUITY

238,585

 

 

228,048

 

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

1,725,615

 

 

1,639,308

 

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,

 

2020

 

2019

 

2020

 

2019

INTEREST INCOME:

 

 

 

 

 

 

 

Interest and fees on loans

$

14,379

 

 

14,872

 

 

44,428

 

 

44,072

 

Dividends on equity securities with a readily determinable fair value

13

 

 

15

 

 

40

 

 

47

 

Dividends on equity securities without a readily determinable fair value

5

 

 

16

 

 

33

 

 

48

 

Interest on debt securities, taxable

633

 

 

918

 

 

2,250

 

 

2,720

 

Interest on debt securities, non-taxable

249

 

 

379

 

 

788

 

 

1,340

 

Interest on interest-bearing time deposits

 

 

3

 

 

 

 

11

 

Other investments

43

 

 

126

 

 

296

 

 

532

 

TOTAL INTEREST INCOME

15,322

 

 

16,329

 

 

47,835

 

 

48,770

 

INTEREST EXPENSE:

 

 

 

 

 

 

 

Interest on deposits

1,567

 

 

2,475

 

 

5,416

 

 

7,225

 

Interest on short-term borrowings

 

 

3

 

 

7

 

 

224

 

Interest on long-term debt

226

 

 

273

 

 

707

 

 

762

 

TOTAL INTEREST EXPENSE

1,793

 

 

2,751

 

 

6,130

 

 

8,211

 

NET INTEREST INCOME

13,529

 

 

13,578

 

 

41,705

 

 

40,559

 

PROVISION FOR LOAN LOSSES

976

 

 

264

 

 

2,165

 

 

213

 

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES

12,553

 

 

13,314

 

 

39,540

 

 

40,346

 

NON-INTEREST INCOME:

 

 

 

 

 

 

 

Fiduciary income

1,275

 

 

1,123

 

 

3,579

 

 

3,215

 

Service charges and fees on deposit accounts

1,506

 

 

1,616

 

 

4,038

 

 

4,421

 

Net gains (losses) on sales of debt securities

 

 

(20)

 

 

221

 

 

(37)

 

Bank owned life insurance income

275

 

 

289

 

 

1,163

 

 

654

 

Gains from sales of loans

999

 

 

114

 

 

1,436

 

 

207

 

Other operating income

223

 

 

234

 

 

999

 

 

666

 

TOTAL NON-INTEREST INCOME

4,278

 

 

3,356

 

 

11,436

 

 

9,126

 

NON-INTEREST EXPENSE:

 

 

 

 

 

 

 

Salaries and employee benefits

6,863

 

 

6,403

 

 

20,279

 

 

18,808

 

Equipment expenses

341

 

 

322

 

 

917

 

 

866

 

Occupancy expense, net

740

 

 

751

 

 

2,145

 

 

2,258

 

State financial institutions tax

424

 

 

433

 

 

1,280

 

 

1,307

 

Marketing

471

 

 

410

 

 

906

 

 

1,009

 

Amortization of intangibles

263

 

 

263

 

 

783

 

 

780

 

FDIC insurance premiums, net

112

 

 

(13)

 

 

142

 

 

225

 

Contracted services

435

 

 

455

 

 

1,312

 

 

1,394

 

Other real estate owned

2

 

 

1

 

 

(7)

 

 

52

 

Merger-related expenses

 

 

27

 

 

 

 

114

 

Other non-interest expense

2,002

 

 

1,930

 

 

6,084

 

 

5,702

 

TOTAL NON-INTEREST EXPENSE

11,653

 

 

10,982

 

 

33,841

 

 

32,515

 

INCOME BEFORE INCOME TAXES

5,178

 

 

5,688

 

 

17,135

 

 

16,957

 

PROVISION FOR INCOME TAXES

928

 

 

961

 

 

2,802

 

 

2,875

 

NET INCOME

$

4,250

 

 

4,727

 

 

14,333

 

 

14,082

 

 

 

 

 

 

 

 

 

Dividends declared per common share

$

0.18

 

 

0.17

 

 

0.54

 

 

0.51

 

Earnings per common share:

 

 

 

 

 

 

 

Basic

0.33

 

 

0.36

 

 

1.11

 

 

1.07

 

Diluted

0.33

 

 

0.36

 

 

1.11

 

 

1.07

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

Basic

12,937,865

 

 

12,932,950

 

 

12,934,987

 

 

13,135,134

 

Diluted

12,937,901

 

 

12,937,145

 

 

12,935,388

 

 

13,139,100

 

 

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

Source: LCNB Corp.