LCNB LCNB Corporation

Ohio	001-35292	31-1626393
(State or other jurisdiction of incorporation)	(Commission File No.)	(IRS Employer Identification Number)

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, No Par Value		LCNB		NASDAQ

	LCNB CORP.
Date: January 30, 2025	By: /s/ Robert C. Haines II
		Robert C. Haines II Chief Financial Officer

Exhibit 99.1

Press Release

 

Lebanon, Ohio 45036

 

Company Contact: Eric J. Meilstrup President and Chief Executive Officer LCNB National Bank (513) 932-1414 shareholderrelations@lcnb.com

Investor and Media Contact: Andrew M. Berger Managing Director SM Berger & Company, Inc. (216) 464-6400 andrew@smberger.com

 

 

LCNB CORP. REPORTS FINANCIAL RESULTS FOR

THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2024

 

Q4 2024 GAAP net income improved 41.9% quarter-over-quarter to $0.44 per diluted share, reflecting the contribution from

the Company’s recent acquisitions, balance sheet optimization strategies and strong operating performance

 

Return on average assets was 1.04% for the quarter ended December 31, 2024

 

LCNB Wealth Management assets increased 15.1% year-over-year to a record $1.38 billion at December 31, 2024,
producing robust fiduciary income of $2.3 million for the 2024 fourth quarter

 

Asset quality remains at historically strong levels with non-performing assets to total assets of 0.20% at December 31, 2024

 

LEBANON, Ohio--LCNB Corp. ("LCNB") (NASDAQ: LCNB) today announced financial results for the three months and twelve months ended December 31, 2024.

 

Commenting on the financial results, LCNB President and Chief Executive Officer, Eric Meilstrup said, “As expected, our 2024 fourth-quarter results demonstrate the success of our multi-year growth plan, strategic improvements we have made to our balance sheet, and the hard work and dedication of LCNB’s associates. Successfully integrating the Eagle Financial Bancorp, Inc. (“Eagle”) and Cincinnati Bancorp, Inc. (“Cincinnati Federal”) acquisitions was an important operating strategy we pursued throughout 2024.  I am pleased to share that the vast majority of these integration efforts have been completed.  As a result, we can focus more of our efforts on optimizing our diverse banking platform, pursuing growth opportunities throughout our compelling Ohio markets, and leveraging the success of LCNB Wealth Management.” 

 

Mr. Meilstrup continued, “Throughout 2024 we completed several actions to improve our balance sheet, including over $97 million of opportunistic asset sales completed during the year. These asset sales leverage our excellent asset quality, robust liquidity levels, and improved overall net interest margin.  At December 31, 2024, non-performing assets to total assets remained historically strong at 0.20%, and our equity to assets ratio grew 70 basis points year-over-year to 10.97%.  During 2025, we plan to continue pursuing strategic opportunities to further enhance our balance sheet, improve liquidity levels, and expand overall profitability, while maintaining excellent asset quality.”

 

“LCNB experienced a historic year of growth and transformation in 2024.  I am proud of our team’s strong performance and continued dedication to our communities.  I believe we are well positioned for profitable growth in 2025, as we benefit further from our expanded banking platform, strong asset quality, and compelling financial model,” concluded Mr. Meilstrup. 

 

Income Statement

 

Net income for the 2024 fourth quarter was $6.1 million, compared to net loss of $(293,000) for the same period last year. Earnings per basic and diluted share for the 2024 fourth quarter were $0.44, compared to a loss of $(0.02) for the same period last year. Net income for the twelve-month period ended December 31, 2024, was $13.5 million, compared to $12.6 million for the same period last year. Earnings per basic and diluted share for the twelve-month period ended December 31, 2024 were $0.97, compared to $1.10 for the same period last year.

 

Net income adjusted for after-tax merger costs for the 2024 fourth quarter was $6.2 million, or $0.44 per basic and diluted share, compared to $4.2 million, or $0.34 per basic and diluted share, for the same period last year.  Adjusted net income for the twelve months ended December 31, 2024 was $17.6 million, or $1.27 per basic and diluted share, compared to $17.8 million, or $1.56 per basic and diluted share, in the prior year period.

 

Net interest income for the three months ended December 31, 2024 was $16.7 million, compared to $14.7 million for the comparable period in 2023. Net interest income for the twelve-month period ended December 31, 2024 was $60.8 million, as compared to $56.3 million in the same period last year.  An increase in interest income from loans, due to a higher volume of average loans outstanding and the average rates earned on these loans, was partially offset by higher average balances in interest-bearing demand and money market deposits, IRA and time certificates, and long-term debt and an increase in rates paid for these liabilities.  For the 2024 fourth quarter, LCNB’s tax equivalent net interest margin was 3.22%, compared to 2.99% for the same period last year.  Net interest margin for the twelve-month period ended December 31, 2024 was 2.91%, as compared to 3.14% in the same period last year. 

 

Non-interest income for the three months ended December 31, 2024 was $6.0 million, compared to $4.6 million for the same period last year. For the twelve months ended December 31, 2024, non-interest income increased $5.0 million, or by 32.4%, to $20.4 million, compared to $15.4 million for the same period last year. The increase in non-interest income for the twelve-month period was primarily due to net gains from sales of loans.  In addition, non-interest income for the twelve-month period benefitted from increased fiduciary income, service charges, and bank-owned life insurance income. 

 

Non-interest expense for the three months ended December 31, 2024 was $14.6 million, compared to $17.6 million for the same period last year.  The $3.0 million decrease was primarily due to $3.9 million of one-time merger-related expenses that occurred in the 2023 fourth quarter.  For the twelve months ended December 31, 2024, non-interest expense was $8.9 million higher than the comparable period in 2023, due to an increase in salaries and employee benefit costs and other operating expenses, partially offset by lower merger related expenses. 

 

Capital Allocation

 

For the full year ended December 31, 2024, LCNB paid $0.88 per share in dividends, a 3.5% increase from $0.85 per share for the full year ended December 31, 2023.

 

Balance Sheet 

 

Total assets at December 31, 2024 increased 0.7%, to $2.31 billion, from $2.29 billion at December 31, 2023.  Net loans at December 31, 2024 were $1.71 billion, a decrease of 0.2%, or $3.1 million, from December 31, 2023. During the year ended December 31, 2024, the Company originated $399.6 million in loans, of which $138.4 million were sold into the secondary market.

 

Loans held for sale totaled $5.6 million at December 31, 2024, compared to $35.7 million at September 30, 2024 and $75.6 million at March 31, 2024, and are primarily composed of loans scheduled to be sold to an investor. Proceeds from loan sales that occurred during 2024 were used for general corporate purposes, which included supporting loan originations, paying down higher cost funding sources, and adding to liquidity balances.

 

Total deposits at December 31, 2024 increased 3.0% to $1.88 billion, compared to $1.82 billion at December 31, 2023.  Not including the Eagle acquisition, total deposit relationships, including off-balance-sheet deposits, increased 3.6% organically, or by $66 million, from December 31, 2023. 

 

At December 31, 2024, shareholders' equity was $253.0 million, compared to $235.3 million at December 31, 2023. On a per-share basis, shareholders' equity at December 31, 2024 was $17.92, compared to $17.86 at December 31, 2023.

 

At December 31, 2024, tangible shareholders' equity was $154.7 million, compared to $150.4 million at December 31, 2023. The 2.9% year-over-year increase in tangible shareholders' equity was primarily from higher retained earnings, and an improvement in the unrealized losses on the available-for-sale investment portfolio.  On a per-share basis, tangible shareholders' equity was $10.96 at December 31, 2024, compared to $11.42 at December 31, 2023. While bond market volatility is expected to continue in 2025, LCNB predicts tangible book value may increase in 2025 primarily due to higher retained earnings. 

 

Assets Under Management

 

Total assets managed at December 31, 2024 were $4.23 billion, compared to $3.88 billion at December 31, 2023.  The year-over-year increase in total assets managed was due to the Eagle acquisition and organic growth in LCNB total assets, trust and investments, mortgage loans serviced, cash management, and brokerage accounts.  Organically, trust and investments and brokerage accounts increased due to a higher number of new LCNB Wealth Management customer accounts and an increase in the fair value of managed assets. 

 

Asset Quality

 

For the 2024 fourth quarter, LCNB recorded a provision for credit losses of $649,000, compared to a provision for credit losses of $2.2 million for the 2023 fourth quarter.  For the twelve months ended December 31, 2024, LCNB recorded a total provision for credit losses of $2.0 million, compared to a total provision for credit losses of $2.1 million for the twelve months ended December 31, 2023. 

 

Net charge-offs for the 2024 fourth quarter were $595,000, or 0.14% of average loans, compared to net charge-offs of $102,000, or 0.02% of average loans, annualized, for the same period last year. For the 2024 twelve-month period, net charge-offs were $742,000, or 0.04% of average loans, compared to net charge-offs of $184,000, or 0.01% of average loans, for the 2023 twelve-month period.

 

Total nonperforming loans, which include non-accrual loans and loans past due 90 days or more and still accruing interest, were $4.6 million, or 0.27% of total loans, at December 31, 2024, compared to $152,000, or 0.01% of total loans, at December 31, 2023.  The year-over-year increase in nonaccrual loans was primarily due to one commercial real estate relationship, representing a balance of $2.6 million. LCNB does not foresee any additional loss on this loan as it is deemed to have adequate provision based on management’s current review of the property value. The nonperforming assets to total assets ratio was 0.20% at December 31, 2024, compared to 0.01% at December 31, 2023. 

 

About LCNB Corp.

 

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 and Boone County, Kentucky. 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.

 

Forward-Looking Statements

 

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, 2023, 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, including Cincinnati Federal and Eagle, may be unsuccessful or may be more difficult, time-consuming, or costly than expected;

3.

LCNB may incur increased loan charge-offs in the future and the allowance for credit losses may be inadequate;

4.

LCNB may face competitive loss of customers;

5.

changes in the interest rate environment, either by interest rate increases or decreases, 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 regulations and government policies affecting bank holding companies and their subsidiaries, including changes in monetary policies, could negatively impact LCNB’s operating results;

8.

LCNB may experience difficulties growing loan and deposit balances;

9.

United States trade relations with foreign countries could negatively impact the financial condition of LCNB's customers, which could adversely affect LCNB 's operating results and financial condition;

10.

global and/or domestic geopolitical relations and/or conflicts could create financial market uncertainty and have negative impacts on commodities, currency, and stability, which could adversely affect LCNB's operating results and financial condition;

11.

difficulties with technology or data security breaches, including cyberattacks or widespread outages, could negatively affect LCNB's ability to conduct business and its relationships with customers, vendors, and others;

12.

adverse weather events and natural disasters and global and/or national epidemics could negatively affect LCNB’s customers given its concentrated geographic scope, which could impact LCNB’s operating results; and

13.

government intervention in the U.S. financial system, including the effects of legislative, tax, accounting, and regulatory actions and reforms, including the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Jumpstart Our Business Startups Act, the Consumer Financial Protection Bureau, the capital ratios of Basel III as adopted by the federal banking authorities, changes in deposit insurance premium levels, and any such future regulatory actions or reforms.

 

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.

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

 

v3.24.4

Document And Entity Information	Jan. 30, 2025
Document Information [Line Items]
Entity, Registrant Name	LCNB CORP.
Document, Type	8-K
Document, Period End Date	Jan. 30, 2025
Entity, Incorporation, State or Country Code	OH
Entity, File Number	001-35292
Entity, Tax Identification Number	31-1626393
Entity, Address, Address Line One	2 North Broadway
Entity, Address, City or Town	Lebanon
Entity, Address, State or Province	OH
Entity, Address, Postal Zip Code	45036
City Area Code	513
Local Phone Number	932-1414
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock
Trading Symbol	LCNB
Security Exchange Name	NASDAQ
Entity, Emerging Growth Company	false
Amendment Flag	false
Entity, Central Index Key	0001074902

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