LCNB Corp. Reports Financial Results for the Three and Twelve Months Ended December 31, 2020

February 1, 2021 8:00 AM EST

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Annual Diluted Earnings Per Share Increased 7.6% Year-over-Year to a Record of $1.55

Record Fiduciary Income, Driven by a 44.2% Year-over-Year Increase in Trust and Investment Assets

Strong Credit Quality with Annual Net Charge-offs to Average Loans of 3 Basis Points

Fourth Quarter Return on Average Tangible Equity of 12.83%, up 120 Basis Points Year-over-Year

Total Assets Managed Increased 16.3% Year-over-Year to a Record $2.9 Billion

LEBANON, Ohio--(BUSINESS WIRE)-- LCNB Corp. ("LCNB") (NASDAQ: LCNB) today announced financial results for the three and twelve months ended December 31, 2020.

Net income for the 2020 fourth quarter was $5,742,000, compared to $4,830,000 for the same period last year. Earnings per basic and diluted share for the 2020 fourth quarter were $0.44, compared to $0.37 for the same period last year. Net income for the twelve-month period ended December 31, 2020 was $20,075,000, compared to $18,912,000 for the same period last year. Earnings per basic and diluted share for the twelve-month period ended December 31, 2020 were $1.55, compared to $1.44 for the same period last year. The efficiency ratio improved by 137 basis points, moving from 64.76% for 2019 to 63.39% for 2020.

Earnings, before provisions for loan losses and income taxes, increased 13.4% to $6,874,000 for the 2020 fourth quarter compared to $6,062,000 for the same period last year. For the twelve-month period ended December 31, 2020, earnings, before provisions for loan losses and income taxes, increased 12.7% to $26,174,000, compared to $23,232,000 for the twelve-month period ended December 31, 2019.

Commenting on the financial results, LCNB President and Chief Executive Officer Eric Meilstrup said, “LCNB’s record 2020 earnings reflect the valuable financial services we provide our communities, our conservative approach to risk, and the success of our diversified business model. Most importantly, 2020 demonstrates the dedication of our 361 employees and I am humbled by our team’s resiliency and strong operating performance throughout 2020 and the COVID-19 pandemic.”

Mr. Meilstrup continued, “Despite unprecedented economic challenges related to the COVID-19 crisis, our asset quality remained strong and we experienced stable year-over-year trends in both net charge-offs to average loans and nonperforming assets to total assets. In addition, at December 31, 2020, we only had ten loans in short-term deferral status totaling $20,576,000, which represents a 94.8% decline from the amount of deferrals at June 30, 2020. Strong asset quality performance is a direct result of our conservative lending culture and stable economic trends within our Southwest and Central Ohio markets.”

“We remain focused on building upon 2020’s accomplishments by continuing to offer our communities leading and diversified financial services, maintaining strong asset quality, managing both our cost of funds and non-interest expenses, and increasing non-interest income. We believe we have a proven platform to drive sustainable growth and create long-term value for our shareholders,” concluded Mr. Meilstrup.

Net interest income for the three months ended December 31, 2020 was $14,513,000, compared to $13,847,000 for the comparable period in 2019. Net interest income for the twelve-month period ended December 31, 2020 increased $1,812,000 to $56,218,000, as compared to $54,406,000 in the same period last year. Favorably contributing to the variances for both the three- and twelve- month periods were market driven decreases in the average rates paid on deposits, aided by a shift from higher cost certificates of deposit to lower cost demand and savings products.

Non-interest income for the three and twelve months ended December 31, 2020 was, respectively, $1,083,000 and $3,393,000 greater than the comparable periods in 2019 primarily due to increases in fiduciary income and gains from sales of loans. The increase for the twelve-month period also 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 fourth quarter of 2019 and partially due to a mortality benefit received during the first quarter of 2020.

Non-interest expense for the three and twelve months ended December 31, 2020 was respectively, $937,000 and $2,263,000 greater than the comparable periods in 2019, primarily due to increases in salaries and employee benefits. 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 salaries and employee benefits.

Asset Quality

For the 2020 fourth quarter, LCNB recorded a $151,000 credit for loan losses, compared to a credit of $6,000 for the 2019 fourth quarter. The provision for loan losses for the year ended December 31, 2020 was $2,014,000, compared to $207,000 for the year ended December 31, 2019. The $1,807,000 year-over-year increase in the provision for loan losses was partially due to adjustments for potential impacts from the economic recession caused by the COVID-19 pandemic.

Net charge-offs for the 2020 fourth quarter were $95,000, or 0.03% of average loans, annualized, compared to $115,000, or 0.04% of average loans, for the same period last year. For the 2020 twelve-month period, net charge-offs were $331,000, or 0.03% of average loans, compared to $207,000, or 0.02% of average loans for the 2019 twelve-month period.

Non-accrual loans and loans past due 90 days or more and still accruing interest increased $508,000, from $3,210,000 or 0.26% of total loans at December 31, 2019 to $3,718,000 or 0.29% of total loans at December 31, 2020. Nonperforming assets to total assets was 0.21% at December 31, 2020 and at December 31, 2019.

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. 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 Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act"), 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

 

Year Ended

 

12/31/2020

 

9/30/2020

 

6/30/2020

 

3/31/2020

 

12/31/2019

 

12/31/2020

 

12/31/2019

Condensed Income Statement

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

$

15,945

 

 

15,322

 

 

15,957

 

 

16,556

 

 

16,424

 

 

63,780

 

 

65,194

 

Interest expense

1,432

 

 

1,793

 

 

1,959

 

 

2,378

 

 

2,577

 

 

7,562

 

 

10,788

 

Net interest income

14,513

 

 

13,529

 

 

13,998

 

 

14,178

 

 

13,847

 

 

56,218

 

 

54,406

 

Provision (credit) for loan losses

(151)

 

 

976

 

 

16

 

 

1,173

 

 

(6)

 

 

2,014

 

 

207

 

Net interest income after provision

14,664

 

 

12,553

 

 

13,982

 

 

13,005

 

 

13,853

 

 

54,204

 

 

54,199

 

Non-interest income

4,305

 

 

4,278

 

 

3,319

 

 

3,839

 

 

3,222

 

 

15,741

 

 

12,348

 

Non-interest expense

11,944

 

 

11,653

 

 

11,116

 

 

11,072

 

 

11,007

 

 

45,785

 

 

43,522

 

Income before income taxes

7,025

 

 

5,178

 

 

6,185

 

 

5,772

 

 

6,068

 

 

24,160

 

 

23,025

 

Provision for income taxes

1,283

 

 

928

 

 

1,128

 

 

746

 

 

1,238

 

 

4,085

 

 

4,113

 

Net income

$

5,742

 

 

4,250

 

 

5,057

 

 

5,026

 

 

4,830

 

 

20,075

 

 

18,912

 

Amort/Accret income on acquired loans

$

186

 

 

 

 

294

 

 

667

 

 

400

 

 

1,328

 

 

1,281

 

Amort/Accret expenses on acquired interest-bearing liabilities

$

1

 

 

 

 

2

 

 

3

 

 

3

 

 

6

 

 

293

 

Tax-equivalent net interest income

$

14,577

 

 

13,594

 

 

14,066

 

 

14,254

 

 

13,937

 

 

56,491

 

 

54,852

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Data

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends per share

$

0.19

 

 

0.18

 

 

0.18

 

 

0.18

 

 

0.18

 

 

0.73

 

 

0.69

 

Basic earnings per common share

$

0.44

 

 

0.33

 

 

0.39

 

 

0.39

 

 

0.37

 

 

1.55

 

 

1.44

 

Diluted earnings per common share

$

0.44

 

 

0.33

 

 

0.39

 

 

0.39

 

 

0.37

 

 

1.55

 

 

1.44

 

Book value per share

$

18.73

 

 

18.46

 

 

18.27

 

 

18.00

 

 

17.63

 

 

18.73

 

 

17.63

 

Tangible book value per share

$

13.93

 

 

13.66

 

 

13.47

 

 

13.18

 

 

12.78

 

 

13.93

 

 

12.78

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

12,852,614

 

 

12,937,865

 

 

12,940,975

 

 

12,926,077

 

 

12,912,106

 

 

12,914,277

 

 

13,078,920

 

Diluted

12,852,657

 

 

12,937,901

 

 

12,941,001

 

 

12,927,666

 

 

12,916,000

 

 

12,914,584

 

 

13,082,893

 

Shares outstanding at period end

12,858,325

 

 

12,926,686

 

 

12,975,879

 

 

12,969,076

 

 

12,936,783

 

 

12,858,325

 

 

12,936,783

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

1.31

%

 

0.97

%

 

1.19

%

 

1.23

%

 

1.17

%

 

1.18

%

 

1.15

%

Return on average equity

9.52

%

 

7.08

%

 

8.63

%

 

8.75

%

 

8.42

%

 

8.49

%

 

8.42

%

Return on average tangible equity

12.83

%

 

9.56

%

 

11.74

%

 

12.00

%

 

11.63

%

 

11.53

%

 

11.72

%

Dividend payout ratio

43.18

%

 

54.55

%

 

46.15

%

 

46.15

%

 

48.65

%

 

47.10

%

 

47.92

%

Net interest margin (tax equivalent)

3.71

%

 

3.47

%

 

3.70

%

 

3.92

%

 

3.76

%

 

3.70

%

 

3.71

%

Efficiency ratio (tax equivalent)

63.26

%

 

65.20

%

 

63.94

%

 

61.19

%

 

64.15

%

 

63.39

%

 

64.76

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Balance Sheet Items

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

31,730

 

 

$

24,485

 

 

42,736

 

 

24,795

 

 

20,765

 

 

 

 

 

Debt and equity securities

248,624

 

 

199,044

 

 

194,883

 

 

183,123

 

 

219,791

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

$

100,254

 

 

$

124,628

 

 

125,492

 

 

85,356

 

 

78,306

 

 

 

 

 

Commercial, secured by real estate

843,230

 

 

843,943

 

 

833,286

 

 

829,461

 

 

804,953

 

 

 

 

 

Residential real estate

309,692

 

 

327,689

 

 

334,349

 

 

318,009

 

 

322,533

 

 

 

 

 

Consumer

36,917

 

 

36,504

 

 

32,859

 

 

28,955

 

 

25,232

 

 

 

 

 

Agricultural

10,100

 

 

8,920

 

 

11,071

 

 

10,519

 

 

11,509

 

 

 

 

 

Other, including deposit overdrafts

363

 

 

403

 

 

283

 

 

436

 

 

1,193

 

 

 

 

 

Deferred net origination fees

(1,135)

 

 

(1,927)

 

 

(1,902)

 

 

(349)

 

 

(275)

 

 

 

 

 

Loans, gross

1,299,421

 

 

1,340,160

 

 

1,335,438

 

 

1,272,387

 

 

1,243,451

 

 

 

 

 

Less allowance for loan losses

5,728

 

 

5,974

 

 

5,016

 

 

5,008

 

 

4,045

 

 

 

 

 

Loans, net

$

1,293,693

 

 

1,334,186

 

 

1,330,422

 

 

1,267,379

 

 

1,239,406

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total earning assets

$

1,562,392

 

 

1,547,538

 

 

1,554,537

 

 

1,462,485

 

 

1,466,988

 

 

 

 

 

Total assets

1,745,884

 

 

1,725,615

 

 

1,735,332

 

 

1,636,280

 

 

1,639,308

 

 

 

 

 

Total deposits

1,455,423

 

1,430,394

1,438,921

1,345,872

1,348,280

 

 

Three Months Ended

 

Year Ended

 

12/31/2020

 

9/30/2020

 

6/30/2020

 

3/31/2020

 

12/31/2019

 

12/31/2020

 

12/31/2019

Selected Balance Sheet Items, continued

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt

22,000

 

 

31,999

 

 

33,998

 

 

35,996

 

 

40,994

 

 

 

 

 

Total shareholders’ equity

240,825

 

 

238,585

 

 

237,047

 

 

233,478

 

 

228,048

 

 

 

 

 

Equity to assets ratio

13.79

%

 

13.83

%

 

13.66

%

 

14.27

%

 

13.91

%

 

 

 

 

Loans to deposits ratio

89.28

%

 

93.69

%

 

92.81

%

 

94.54

%

 

92.22

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity (TCE)

$

179,127

 

 

176,624

 

 

174,823

 

 

170,994

 

 

165,304

 

 

 

 

 

Tangible common assets (TCA)

1,684,186

 

 

1,663,654

 

 

1,673,108

 

 

1,573,796

 

 

1,576,564

 

 

 

 

 

TCE/TCA

10.64

%

 

10.62

%

 

10.45

%

 

10.87

%

 

10.49

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Average Balance Sheet Items

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

49,273

 

 

42,661

 

 

46,292

 

 

25,101

 

 

26,501

 

 

40,825

 

 

27,321

 

Debt and equity securities

218,816

 

 

197,788

 

 

182,371

 

 

204,912

 

 

231,115

 

 

201,012

 

 

247,569

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

$

1,313,892

 

 

1,339,608

 

 

1,318,753

 

 

1,252,554

 

 

1,230,845

 

 

1,306,314

 

 

1,221,375

 

Less allowance for loan losses

5,920

 

 

5,250

 

 

4,998

 

 

3,938

 

 

4,076

 

 

5,029

 

 

4,056

 

Net loans

$

1,307,972

 

 

1,334,358

 

 

1,313,755

 

 

1,248,616

 

 

1,226,769

 

 

1,301,285

 

 

1,217,319

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total earning assets

$

1,561,392

 

 

1,558,886

 

 

1,528,610

 

 

1,462,946

 

 

1,469,469

 

 

1,528,134

 

 

1,477,333

 

Total assets

1,742,947

 

 

1,741,998

 

 

1,704,303

 

 

1,638,486

 

 

1,643,793

 

 

1,706,924

 

 

1,642,591

 

Total deposits

1,447,217

 

 

1,445,573

 

 

1,412,082

 

 

1,346,770

 

 

1,352,101

 

 

1,413,093

 

 

1,351,036

 

Short-term borrowings

 

 

 

 

82

 

 

1,415

 

 

622

 

 

372

 

 

6,064

 

Long-term debt

30,803

 

 

33,020

 

 

34,964

 

 

38,325

 

 

41,742

 

 

34,265

 

 

42,733

 

Total shareholders’ equity

239,881

 

 

238,990

 

 

235,587

 

 

231,058

 

 

227,595

 

 

236,396

 

 

224,639

 

Equity to assets ratio

13.76

%

 

13.72

%

 

13.82

%

 

14.10

%

 

13.85

%

 

13.85

%

 

13.62

%

Loans to deposits ratio

90.79

%

 

92.67

%

 

93.39

%

 

93.00

%

 

91.03

%

 

92.44

%

 

90.19

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs

$

95

 

 

18

 

 

8

 

 

210

 

 

115

 

 

331

 

 

207

 

Other real estate owned

 

 

 

 

 

 

 

 

197

 

 

 

 

197

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans

3,718

 

 

4,110

 

 

3,876

 

 

2,829

 

 

3,210

 

 

3,718

 

 

3,210

 

Loans past due 90 days or more and still accruing

 

 

94

 

 

38

 

 

39

 

 

 

 

 

 

 

Total nonperforming loans

$

3,718

 

 

4,204

 

 

3,914

 

 

2,868

 

 

3,210

 

 

3,718

 

 

3,210

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs to average loans

0.03

%

 

0.01

%

 

0.00

%

 

0.07

%

 

0.04

%

 

0.03

%

 

0.02

%

Allowance for loan losses to total loans

0.44

%

 

0.45

%

 

0.38

%

 

0.39

%

 

0.33

%

 

0.44

%

 

0.33

%

Nonperforming loans to total loans

0.29

%

 

0.31

%

 

0.29

%

 

0.23

%

 

0.26

%

 

0.29

%

 

0.26

%

Nonperforming assets to total assets

0.21

%

 

0.24

%

 

0.23

%

 

0.18

%

 

0.21

%

 

0.21

%

 

0.21

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets Under Management

 

 

 

 

 

 

 

 

 

 

 

 

 

LCNB Corp. total assets

$

1,745,884

 

 

1,725,615

 

 

1,735,332

 

 

1,636,280

 

 

1,639,308

 

 

 

 

 

Trust and investments (fair value)

628,414

 

 

524,502

 

 

516,076

 

 

455,974

 

 

435,664

 

 

 

 

 

Mortgage loans serviced

137,188

 

 

120,546

 

 

100,189

 

 

94,805

 

 

93,596

 

 

 

 

 

Cash management

116,792

 

 

119,520

 

 

116,615

 

 

77,471

 

 

75,948

 

 

 

 

 

Brokerage accounts (fair value)

292,953

 

 

267,307

 

 

255,276

 

 

235,278

 

 

268,059

 

 

 

 

 

Total assets managed

$

2,921,231

 

 

2,757,490

 

 

2,723,488

 

 

2,499,808

 

 

2,512,575

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LCNB CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

(Dollars in thousands)

 

December 31,
2020
(Unaudited)

 

December 31,
2019

ASSETS:

 

 

 

Cash and due from banks

$

17,383

 

 

17,019

 

Interest-bearing demand deposits

14,347

 

 

3,746

 

Total cash and cash equivalents

31,730

 

 

20,765

 

Investment securities:

 

 

 

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

2,389

 

 

2,312

 

Equity securities without a readily determinable fair value, at cost

2,099

 

 

2,099

 

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

209,471

 

 

178,000

 

Debt securities, held-to-maturity, at cost

24,810

 

 

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

1,293,693

 

 

1,239,406

 

Premises and equipment, net

35,376

 

 

34,787

 

Operating leases right of use asset

6,274

 

 

5,444

 

Goodwill

59,221

 

 

59,221

 

Core deposit and other intangibles

3,453

 

 

4,006

 

Bank owned life insurance

42,149

 

 

41,667

 

Interest receivable

8,337

 

 

3,926

 

Other assets

17,027

 

 

10,295

 

TOTAL ASSETS

$

1,745,884

 

 

1,639,308

 

 

 

 

 

LIABILITIES:

 

 

 

Deposits:

 

 

 

Noninterest-bearing

$

455,073

 

 

354,391

 

Interest-bearing

1,000,350

 

 

993,889

 

Total deposits

1,455,423

 

 

1,348,280

 

Long-term debt

22,000

 

 

40,994

 

Operating lease liabilities

6,371

 

 

5,446

 

Accrued interest and other liabilities

21,265

 

 

16,540

 

TOTAL LIABILITIES

1,505,059

 

 

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 14,090,038 and 14,111,810 shares at December 31, 2020 and 2019, respectively; outstanding 12,858,325 and 12,936,783 shares at December 31, 2020 and 2019, respectively

142,443

 

 

141,791

 

Retained earnings

115,058

 

 

104,431

 

Treasury shares at cost, 1,231,713 and 1,175,027 shares at December 31, 2020 and 2019, respectively

(20,719)

 

 

(18,847)

 

Accumulated other comprehensive income, net of taxes

4,043

 

 

673

 

TOTAL SHAREHOLDERS' EQUITY

240,825

 

 

228,048

 

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

1,745,884

 

 

1,639,308

 

LCNB CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)

 

Three Months Ended
December 31,

 

Year Ended
December 31,

 

2020

 

2019

 

2020

 

2019

INTEREST INCOME:

 

 

 

 

 

 

 

Interest and fees on loans

$

14,839

 

 

14,937

 

 

59,267

 

 

59,009

 

Dividends on equity securities with a readily determinable fair value

14

 

 

15

 

 

54

 

 

62

 

Dividends on equity securities without a readily determinable fair value

4

 

 

17

 

 

37

 

 

65

 

Interest on debt securities, taxable

666

 

 

881

 

 

2,916

 

 

3,601

 

Interest on debt securities, non-taxable

239

 

 

337

 

 

1,027

 

 

1,677

 

Interest on interest-bearing time deposits

 

 

 

 

 

 

11

 

Other investments

183

 

 

237

 

 

479

 

 

769

 

TOTAL INTEREST INCOME

15,945

 

 

16,424

 

 

63,780

 

 

65,194

 

INTEREST EXPENSE:

 

 

 

 

 

 

 

Interest on deposits

1,218

 

 

2,301

 

 

6,634

 

 

9,526

 

Interest on short-term borrowings

 

 

3

 

 

7

 

 

227

 

Interest on long-term debt

214

 

 

273

 

 

921

 

 

1,035

 

TOTAL INTEREST EXPENSE

1,432

 

 

2,577

 

 

7,562

 

 

10,788

 

NET INTEREST INCOME

14,513

 

 

13,847

 

 

56,218

 

 

54,406

 

PROVISION (CREDIT) FOR LOAN LOSSES

(151)

 

 

(6)

 

 

2,014

 

 

207

 

NET INTEREST INCOME AFTER PROVISION (CREDIT) FOR LOAN LOSSES

14,664

 

 

13,853

 

 

54,204

 

 

54,199

 

NON-INTEREST INCOME:

 

 

 

 

 

 

 

Fiduciary income

1,430

 

 

1,139

 

 

5,009

 

 

4,354

 

Service charges and fees on deposit accounts

1,444

 

 

1,454

 

 

5,482

 

 

5,875

 

Net gains (losses) on sales of debt securities

 

 

(4)

 

 

221

 

 

(41)

 

Bank owned life insurance income

278

 

 

289

 

 

1,441

 

 

943

 

Gains from sales of loans

861

 

 

121

 

 

2,297

 

 

328

 

Other operating income

292

 

 

223

 

 

1,291

 

 

889

 

TOTAL NON-INTEREST INCOME

4,305

 

 

3,222

 

 

15,741

 

 

12,348

 

NON-INTEREST EXPENSE:

 

 

 

 

 

 

 

Salaries and employee benefits

6,899

 

 

6,512

 

 

27,178

 

 

25,320

 

Equipment expenses

460

 

 

343

 

 

1,377

 

 

1,209

 

Occupancy expense, net

730

 

 

703

 

 

2,875

 

 

2,961

 

State financial institutions tax

428

 

 

362

 

 

1,708

 

 

1,669

 

Marketing

348

 

 

310

 

 

1,254

 

 

1,319

 

Amortization of intangibles

263

 

 

263

 

 

1,046

 

 

1,043

 

FDIC insurance premiums, net

114

 

 

 

 

256

 

 

225

 

Contracted services

509

 

 

471

 

 

1,821

 

 

1,865

 

Merger-related expenses

 

 

 

 

 

 

114

 

Other non-interest expense

2,193

 

 

2,043

 

 

8,270

 

 

7,797

 

TOTAL NON-INTEREST EXPENSE

11,944

 

 

11,007

 

 

45,785

 

 

43,522

 

INCOME BEFORE INCOME TAXES

7,025

 

 

6,068

 

 

24,160

 

 

23,025

 

PROVISION FOR INCOME TAXES

1,283

 

 

1,238

 

 

4,085

 

 

4,113

 

NET INCOME

$

5,742

 

 

4,830

 

 

20,075

 

 

18,912

 

 

 

 

 

 

 

 

 

Dividends declared per common share

$

0.19

 

 

0.18

 

 

0.73

 

 

0.69

 

Earnings per common share:

 

 

 

 

 

 

 

Basic

0.44

 

 

0.37

 

 

1.55

 

 

1.44

 

Diluted

0.44

 

 

0.37

 

 

1.55

 

 

1.44

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

Basic

12,852,614

 

 

12,912,106

 

 

12,914,277

 

 

13,078,920

 

Diluted

12,852,657

 

 

12,916,000

 

 

12,914,584

 

 

13,082,893

 

 

Company Contact:
Eric J. Meilstrup
President, Chief Executive Officer
LCNB Corp
(513) 932-1414
emeilstrup@lcnb.com

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

Source: LCNB Corp.



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