LCNB Corp. Reports Financial Results for the Three and Twelve Months Ended December 31, 2024

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Jan 30, 2025

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 LCNBs 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 LCNBs 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 LCNBs business and operations. Additionally, LCNBs 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

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