ex_933415.htm

EX-99.2 3 ex_933415.htm EXHIBIT 99.2 ex_933415.htm

Exhibit 99.2

LCNB Corp. and Subsidiaries

Financial Highlights

(Dollars in thousands, except per share amounts)

(Unaudited)

	Three Months Ended
	3/31/2026			12/31/2025			9/30/2025			6/30/2025			3/31/2025
Condensed Income Statement
Interest income	$	25,430			25,187			26,305			25,939			25,316
Interest expense		6,583			6,931			8,179			8,398			9,017
Net interest income		18,847			18,256			18,126			17,541			16,299
Provision for credit losses		2,339			1,510			211			18			197
Net interest income after provision for credit losses		16,508			16,746			17,915			17,523			16,102
Non-interest income		4,693			5,601			5,704			5,248			5,222
Non-interest expense		15,880			15,388			15,145			15,567			15,809
Income before income taxes		5,321			6,959			8,474			7,204			5,515
Provision for income taxes		877			1,303			1,538			1,285			906
Net income	$	4,444			5,656			6,936			5,919			4,609

Supplemental Income Statement Information
Accretion income on acquired loans	$	659			816			904			1,174			692
Amortization expenses on acquired interest-bearing liabilities		—			—			—			—			—
Tax-equivalent net interest income		18,886			18,297			18,169			17,584			16,338
Pre-provision, pre-tax net income		7,660			8,469			8,685			7,222			5,712

Per Share Data
Dividends per share	$	0.22			0.22			0.22			0.22			0.22
Basic earnings per common share	$	0.31			0.40			0.49			0.41			0.33
Diluted earnings per common share	$	0.31			0.40			0.49			0.41			0.33
Book value per share	$	19.36			19.30			19.02			18.59			18.26
Tangible book value per share	$	12.55			12.45			12.15			11.69			11.34
Weighted average common shares outstanding:
Basic		14,125,191			14,106,778			14,097,414			14,085,764			14,051,310
Diluted		14,125,191			14,106,778			14,097,414			14,085,764			14,051,310
Shares outstanding at period end		14,245,849			14,193,577			14,186,204			14,175,241			14,166,915

Selected Financial Ratios
Return on average assets		0.80	%		1.01	%		1.21	%		1.04	%		0.81	%
Return on average equity		6.52	%		8.22	%		10.33	%		9.09	%		7.33	%
Return on average tangible common equity		10.06	%		12.78	%		16.29	%		14.54	%		11.91	%
Dividend payout ratio		70.97	%		55.00	%		44.90	%		53.66	%		66.67	%
Net interest margin (tax equivalent)		3.83	%		3.69	%		3.57	%		3.47	%		3.25	%
Efficiency ratio (tax equivalent)		67.35	%		64.39	%		63.44	%		68.18	%		73.33	%

Selected Balance Sheet Items
Cash and cash equivalents	$	29,181			21,614			35,865			49,778			37,670
Debt and equity securities		276,913			280,565			292,604			302,935			305,644

Loans:
Commercial and industrial	$	100,477			104,013			107,925			110,528			112,580
Commercial, secured by real estate		1,090,718			1,100,203			1,083,748			1,110,875			1,110,276
Residential real estate		476,863			469,574			454,918			459,473			463,379
Consumer		15,834			16,928			17,748			18,452			19,030
Agricultural		14,561			15,666			15,262			14,413			13,161
Other, including deposit overdrafts		273			210			267			171			133
Deferred net origination fees		(1,052	)		(1,063	)		(840	)		(902	)		(929	)
Loans, gross		1,697,674			1,705,531			1,679,028			1,713,010			1,717,630
Less allowance for credit losses		13,372			13,704			12,170			12,108			12,124
Loans, net	$	1,684,302			1,691,827			1,666,858			1,700,902			1,705,506

Loans held for sale	$	3,438			1,718			4,018			6,026			6,098

	Three Months Ended
	3/31/2026			12/31/2025			9/30/2025			6/30/2025			3/31/2025
Selected Balance Sheet Items, continued

Allowance for Credit Losses on Loans:
Allowance for credit losses, beginning of period	$	13,704			12,170			12,108			12,124			12,001
Provision for credit losses on loans		2,398			1,520			231			63			162
Losses charged off		(2,766	)		(67	)		(193	)		(95	)		(53	)
Recoveries		36			81			24			16			14
Allowance for credit losses, end of period	$	13,372			13,704			12,170			12,108			12,124

Total earning assets	$	1,986,777			1,993,785			1,983,606			2,034,540			2,038,666
Goodwill		90,310			90,310			90,310			90,310			90,310
Core deposit intangibles		6,705			6,931			7,161			7,408			7,708
Mortgage servicing rights		2,188			2,340			2,519			2,698			2,908
Other non-earning assets		151,856			147,403			160,769			172,844			163,153
Total non-earning assets		251,059			246,984			260,759			273,260			264,079
Total assets		2,237,836			2,240,769			2,244,365			2,307,800			2,302,745
Total deposits		1,838,793			1,840,355			1,849,082			1,919,372			1,921,649
Long-term debt		104,133			104,428			104,717			105,000			104,637
Total shareholders’ equity		275,816			273,929			269,870			263,474			258,651
Equity to assets ratio		12.33	%		12.22	%		12.02	%		11.42	%		11.23	%
Loans to deposits ratio		92.33	%		92.67	%		90.80	%		89.25	%		89.38	%

Tangible common equity (TCE)	$	178,801			176,689			172,399			165,756			160,633
Tangible common assets (TCA)		2,140,821			2,143,529			2,146,894			2,210,082			2,204,727
TCE/TCA		8.35	%		8.24	%		8.03	%		7.50	%		7.29	%

Selected Average Balance Sheet Items
Cash and cash equivalents	$	35,116			29,395			38,466			34,256			36,125
Debt and equity securities		278,950			285,810			298,341			302,475			304,033

Loans, including loans held for sale	$	1,707,948			1,675,449			1,706,281			1,718,959			1,721,894
Less allowance for credit losses on loans		12,812			12,186			12,099			12,117			11,996
Net loans	$	1,695,136			1,663,263			1,694,182			1,706,842			1,709,898

Total earning assets	$	2,000,595			1,968,188			2,017,294			2,031,261			2,036,514
Goodwill		90,310			90,310			90,310			90,310			90,310
Core deposit intangibles		6,816			7,043			7,275			7,555			7,854
Mortgage servicing rights		2,340			2,520			2,699			2,908			3,099
Other non-earning assets		153,437			153,528			159,328			158,251			160,281
Total non-earning assets		252,903			253,401			259,612			259,024			261,544
Total assets		2,253,498			2,221,589			2,276,906			2,290,285			2,298,058
Total deposits		1,846,345			1,822,412			1,884,748			1,906,305			1,896,443
Short-term borrowings		4,795			—			52			63			72
Long-term debt		104,376			104,664			104,951			104,701			127,289
Total shareholders’ equity		276,362			272,856			266,489			261,193			255,120
Equity to assets ratio		12.26	%		12.28	%		11.70	%		11.40	%		11.10	%
Loans to deposits ratio		92.50	%		91.94	%		90.53	%		90.17	%		90.80	%

Asset Quality
Net charge-offs (recoveries)	$	2,730			(14	)		169			79			39
Other real estate owned		—			—			—			—			—

Non-accrual loans	$	3,227			1,794			1,793			4,500			4,710
Loans past due 90 days or more and still accruing		136			530			163			271			181
Total nonperforming loans	$	3,363			2,324			1,956			4,771			4,891

Net charge-offs to average loans		0.65	%		0.00	%		0.04	%		0.02	%		0.01	%
Allowance for credit losses on loans to total loans		0.79	%		0.80	%		0.72	%		0.71	%		0.71	%
Nonperforming loans to total loans		0.20	%		0.14	%		0.12	%		0.28	%		0.28	%
Nonperforming assets to total assets		0.15	%		0.10	%		0.09	%		0.21	%		0.21	%

	Three Months Ended
	3/31/2026		12/31/2025		9/30/2025		6/30/2025		3/31/2025
Assets Under Management
LCNB Corp. total assets	$	2,237,836		2,240,769		2,244,365		2,307,800		2,302,745
Trust and investments (fair value)		1,081,558		1,053,887		1,041,270		990,699		957,359
Mortgage loans serviced		325,133		333,518		341,548		348,003		354,593
Cash management		39,979		10,935		73,002		62,737		100,830
Investment services (fair value)		491,890		504,123		494,947		466,299		441,621
Total assets managed	$	4,176,396		4,143,232		4,195,132		4,175,538		4,157,148

	Three Months Ended March 31,
	2026								2025
	Average			Interest		Average			Average			Interest		Average
	Outstanding			Earned/		Yield/			Outstanding			Earned/		Yield/
	Balance			Paid		Rate			Balance			Paid		Rate
Loans⁽¹⁾	$	1,707,948			23,433		5.56	%		1,721,894			23,181		5.46	%
Interest-bearing demand deposits		10,987			107		3.95	%		10,337			130		5.10	%
Interest-bearing time deposits		2,710			25		3.74	%		250			—		—	%
Federal Reserve Bank stock		6,405			94		5.95	%		6,405			95		6.02	%
Federal Home Loan Bank stock		20,710			392		7.68	%		20,710			469		9.18	%
Investment securities:
Equity securities		5,104			37		2.94	%		5,043			39		3.14	%
Debt securities, taxable		230,649			1,196		2.10	%		254,715			1,256		2.00	%
Debt securities, non-taxable ⁽²⁾		16,082			185		4.67	%		17,160			185		4.37	%
Total earnings assets		2,000,595			25,469		5.16	%		2,036,514			25,355		5.05	%
Non-earning assets		265,726								273,545
Allowance for credit losses		(12,823	)							(12,001	)
Total assets	$	2,253,498								2,298,058

Interest-bearing demand and money market deposits	$	682,183			2,465		1.47	%		570,473			2,337		1.66	%
Savings deposits		356,622			207		0.24	%		365,876			195		0.22	%
IRA and time certificates		343,061			2,609		3.08	%		497,178			5,027		4.10	%
Short-term borrowings		4,795			46		3.89	%		72			1		5.63	%
Long-term debt		104,376			1,256		4.88	%		127,289			1,457		4.64	%
Total interest-bearing liabilities		1,491,037			6,583		1.79	%		1,560,888			9,017		2.34	%
Demand deposits		464,479								462,916
Other liabilities		21,620								19,134
Equity		276,362								255,120
Total liabilities and equity	$	2,253,498								2,298,058
Net interest rate spread ⁽³⁾							3.37	%							2.71	%
Net interest income and net interest margin on a taxable-equivalent basis ⁽⁴⁾					18,886		3.83	%					16,338		3.25	%
Ratio of interest-earning assets to interest-bearing liabilities		134.17	%							130.47	%

	(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)

	March 31, 2026			December 31, 2025
	Unaudited			Audited
ASSETS:
Cash and due from banks	$	23,141			18,353
Interest-bearing demand deposits		6,040			3,261
Total cash and cash equivalents		29,181			21,614
Interest-bearing time deposits		2,712			2,710
Investment securities:
Equity securities with a readily determinable fair value, at fair value		1,422			1,433
Equity securities without a readily determinable fair value, at cost		3,666			3,666
Debt securities, available-for-sale, at fair value		228,750			232,271
Debt securities, held-to-maturity, at cost, net of allowance for credit losses of $10 and $11 at March 31, 2026 and December 31, 2025, respectively		15,960			16,080
Federal Reserve Bank stock, at cost		6,405			6,405
Federal Home Loan Bank stock, at cost		20,710			20,710
Loans held-for-sale		3,438			1,718
Loans, net of allowance for credit losses of $13,372 and $13,704 at March 31, 2026 and December 31, 2025, respectively		1,684,302			1,691,827
Premises and equipment, net		38,965			39,196
Operating lease right-of-use assets		6,388			6,475
Goodwill		90,310			90,310
Core deposit and other intangibles, net		8,893			9,271
Bank-owned life insurance		55,783			55,424
Interest receivable		8,312			7,968
Other assets, net		32,639			33,691
TOTAL ASSETS	$	2,237,836			2,240,769

LIABILITIES:
Deposits:
Noninterest-bearing	$	469,767			466,094
Interest-bearing		1,369,026			1,374,261
Total deposits		1,838,793			1,840,355
Long-term debt		104,133			104,428
Operating lease liabilities		6,758			6,877
Accrued interest and other liabilities		12,336			15,180
TOTAL LIABILITIES		1,962,020			1,966,840

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 17,462,306 and 17,409,085 shares at March 31, 2026 and December 31, 2025, respectively; outstanding 14,245,849 and 14,193,577 shares at March 31, 2026 and December 31, 2025, respectively		188,620			188,212
Retained earnings		153,250			151,938
Treasury shares at cost, 3,216,457 and 3,215,508 shares at March 31, 2026 and December 31, 2025, respectively		(56,087	)		(56,071	)
Accumulated other comprehensive loss, net of taxes		(9,967	)		(10,150	)
TOTAL SHAREHOLDERS' EQUITY		275,816			273,929
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	2,237,836			2,240,769

Exhibit 99.2

LCNB CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)

	Three Months Ended
	March 31,
	2026		2025
INTEREST INCOME:
Interest and fees on loans	$	23,433		23,181
Dividends on equity securities:
With a readily determinable fair value		11		10
Without a readily determinable fair value		26		29
Interest on debt securities:
Taxable		1,196		1,256
Non-taxable		146		146
Other investments		618		694
TOTAL INTEREST INCOME		25,430		25,316

INTEREST EXPENSE:
Interest on deposits		5,281		7,559
Interest on short-term borrowings		46		1
Interest on long-term debt		1,256		1,457
TOTAL INTEREST EXPENSE		6,583		9,017
NET INTEREST INCOME		18,847		16,299

PROVISION FOR CREDIT LOSSES		2,339		197
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		16,508		16,102

NON-INTEREST INCOME:
Fiduciary income		2,539		2,164
Service charges and fees on deposit accounts		1,485		1,766
Bank-owned life insurance income		359		346
Net gains from sales of loans		200		841
Net other operating income		110		105
TOTAL NON-INTEREST INCOME		4,693		5,222

NON-INTEREST EXPENSE:
Salaries and employee benefits		9,467		9,172
Equipment expenses		392		382
Occupancy expense, net		1,021		1,010
State financial institutions tax		447		453
Marketing		294		315
Amortization of intangibles		225		297
FDIC insurance premiums, net		275		410
Computer maintenance and supplies		405		380
Contracted services		979		870
Other non-interest expense		2,375		2,520
TOTAL NON-INTEREST EXPENSE		15,880		15,809
INCOME BEFORE INCOME TAXES		5,321		5,515
PROVISION FOR INCOME TAXES		877		906
NET INCOME	$	4,444		4,609

Earnings per common share:
Basic		0.31		0.33
Diluted		0.31		0.33
Weighted average common shares outstanding:
Basic		14,125,191		14,051,310
Diluted		14,125,191		14,051,310