LCNB Corp. Reports Financial Results for the Three and Six Months

Before you go, we thought you'd like these...
Before you go close icon

LCNB Corp. Reports Financial Results for the Three and Six Months

LEBANON, Ohio--(BUSINESS WIRE)-- LCNB Corp. (NAS: LCNB) today announced net income of $2,348,000 (total basic and diluted earnings per common share of $0.31 and $0.30, respectively) and $4,076,000 (total basic and diluted earnings per common share of $0.54 and $0.53, respectively) for the three and six months ended June 30, 2013, respectively. This compares to net income of $1,987,000 (total basic and diluted earnings per common share of $0.30 and $0.29) and $4,264,000 (total basic and diluted earnings per common share of $0.64 and $0.63) for the same three and six-month periods in 2012. Results for 2013 were significantly affected by the completion of a merger with First Capital Bancshares, Inc. and its subsidiary, Citizens National Bank of Chillicothe, on January 11, 2013.

Commenting on the financial results, LCNB CEO Steve Wilson said, "LCNB's earnings remain strong despite a weak economy and a low interest rate environment. Our return on average assets for the first half of 2013 was 0.88% and our return on equity was 8.75%, even with the recognition of $1,326,000 in costs related to the merger with First Capital. We were pleased to return a $0.32 per share dividend to our shareholders during the first half, which equates to a 59% payout ratio."


Net interest income for the three and six months ended June 30, 2013 increased $1,061,000 and $1,630,000, respectively, from the comparative periods in 2012 due primarily to the increased volume of average interest earning assets provided by the merger.

The provision for loan losses for the three and six months ended June 30, 2013 was $49,000 and $115,000 less than the comparable periods in 2012. Net loan charge-offs for the first six months of 2013 and 2012 totaled $202,000 and $285,000, respectively. Non-accrual loans and loans past due 90 days or more and still accruing interest totaled $3,139,000 or 0.56% of total loans at June 30, 2013, compared to $2,411,000 or 0.53% of total loans at December 31, 2012. Other real estate owned (which includes property acquired through foreclosure or deed-in-lieu of foreclosure and also includes property deemed to be in-substance foreclosed) and other repossessed assets decreased from $2,189,000 at December 31, 2012 to $1,530,000 at June 30, 2013 primarily due the sale of commercial real estate property during the first quarter 2013.

Non-interest income for the three and six-month periods in 2013 was $423,000 and $594,000 greater than the comparable periods in 2012 primarily due to increases in service charges and fees on deposit accounts primarily resulting from the merger and gains recognized on the sale of investment securities. The increases for the six-month period were partially offset by a decrease in trust income due to the absence of one-time fees recognized in the first quarter 2012.

Non-interest expense for the three and six months ended June 30, 2013 was $994,000 and $2,637,000 greater than the comparable periods in 2012 largely due the recognition of $271,000 and $1,326,000 in costs related to the merger with Citizens National Bank. Salaries and employee benefits, as well as a variety of other expense items, increased significantly due to the increased number of employees and offices resulting from the merger. These expense increases were partially offset during the six month period by a gain recognized on the sale of other real estate owned property during the first quarter 2013.

LCNB Corp. is a financial holding company headquartered in Lebanon, Ohio. LCNB Corp.'s only business is ownership of LCNB National Bank, which has 31 offices located in Warren, Butler, Montgomery, Clinton, Clermont, Hamilton, Fayette, and Ross Counties, Ohio. Additional information about LCNB Corp. and information about products and services offered by LCNB National Bank can be found on the internet at www.lcnb.com.

Certain matters disclosed herein may be deemed to be forward-looking statements that involve risks and uncertainties, including regulatory policy changes, interest rate fluctuations, loan demand, loan delinquencies and losses, and other risks. Actual strategies and results in future time periods may differ materially from those currently expected. Such forward-looking statements represent management's judgment as of the current date. LCNB disclaims any intent or obligation to update such forward-looking statements. LCNB intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

 
LCNB Corp. and Subsidiaries
Financial Highlights

(Dollars in thousands, except per share amounts)

  
Three Months EndedSix Months Ended
Condensed Income StatementJune 30,June 30,
2013 20122013 2012
Interest income$8,4057,57116,48115,302
Interest expense1,045 1,272 2,143 2,594 
Net interest income7,3606,29914,33812,708
Provision for loan losses42 91 191 306 
Net interest income after provision7,3186,20814,14712,402
Non-interest income2,1781,7554,6854,091
Non-interest expense6,324 5,330 13,415 10,778 
Income before income taxes3,1722,6335,4175,715
Provision for income taxes824 646 1,341 1,451 
Net income$2,348 1,987 4,076 4,264 
 
Dividends per common share$0.160.160.320.32
 
Earnings per common share:
Basic$0.310.300.540.64
Diluted0.300.290.530.63
 
Average shares outstanding:
Basic7,627,9006,713,8477,570,8176,710,062
Diluted7,759,4386,789,7767,686,8906,784,614
 
Selected Financial Ratios:
Return on average assets0.99%0.98%0.88%1.07%
Return on average equity9.91%9.96%8.75%10.77%
Dividend payout ratio51.61%53.33%59.26%50.00%
Net interest margin (tax equivalent)3.54%3.52%3.54%3.61%
 

Selected Balance Sheet Items

June 30,
2013

December 31,
2012

Investment securities$304,934276,970
 
Loans556,314453,783
Less allowance for loan losses3,426 3,437 
Net loans552,888450,346
 
Total assets945,510788,637
Total deposits800,813671,471
Short-term borrowings36,27213,756
Long-term debt12,78813,705
Total shareholders' equity90,22982,006
 
Shares outstanding at period end7,633,6796,731,900
 
Book value per share$11.8212.18
Tangible book value per share9.6411.29
Equity to assets ratio9.54%10.40%
 
Assets Under Management
LCNB Corp. total assets$945,510788,637
Trust and investments (fair value)248,399221,558
Mortgage loans serviced91,41971,568
Business cash management7,0376,673
Brokerage accounts (fair value)106,856 96,424 
Total assets managed$1,399,221 1,184,860 



LCNB Corp.
Stephen P. Wilson, Chairman and CEO, 800-344-BANK
or
Steve P. Foster, President, 800-344-BANK

KEYWORDS:   United States  North America  Ohio

INDUSTRY KEYWORDS:

The article LCNB Corp. Reports Financial Results for the Three and Six Months originally appeared on Fool.com.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners