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0001074902FALSE00010749022022-01-012022-12-31

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 26, 2023
LCNB CORP.
(Exact name of Registrant as specified in its Charter)
Ohio 001-35292 31-1626393
(State or other jurisdiction of incorporation) (Commission File No.) (IRS Employer Identification Number)

2 North Broadway, Lebanon, Ohio 45036
(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (513) 932-1414

N/A
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities Registered Pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, No Par Value LCNB NASDAQ

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐



If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐





Item 2.02 Results of Operations and Financial Condition.

On January 26, 2023, LCNB Corp. issued an earnings release announcing its financial results for the three and twelve months ended December 31, 2022. A copy of the earnings release (Exhibit 99.1) and unaudited financial highlights (Exhibit 99.2) are attached and are furnished under this Item 2.02.

Item 7.01 Regulation FD Disclosure.

On January 26, 2023, LCNB Corp. issued an earnings release announcing its financial results for the three and twelve months ended December 31, 2022. A copy of the earnings release (Exhibit 99.1) and unaudited financial highlights (Exhibit 99.2) are attached and are furnished under this Item 7.01.

Item 9.01 Financial Statements and Exhibits.

(d)    Exhibits.

Exhibit No.        Description
99.1    Earnings Press Release Dated January 26, 2023
99.2    Unaudited Financial Highlights



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.
LCNB CORP.
Date: January 26, 2023
By: /s/ Robert C. Haines II              
Robert C. Haines II
Chief Financial Officer


EX-99.1 2 lcnbform8-k12312022xex991.htm EX-99.1 Document

Exhibit 99.1
 
Press Release
lcnbcorplogoa.jpg
Two North Broadway
Lebanon, Ohio 45036

Company Contact:
Eric J. Meilstrup
President and Chief Executive Officer
LCNB National Bank
(513) 932-1414
Investor and Media Contact:
Andrew M. Berger
Managing Director
SM Berger & Company, Inc.
(216) 464-6400
shareholderrelations@lcnb.com andrew@smberger.com

LCNB CORP. REPORTS RECORD FINANCIAL RESULTS FOR
THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2022
LCNB Corp. Ended 2022 With Record Total Assets of $1.92 Billion
Return on Average Tangible Common Equity Increased Year-Over-Year to 14.96% from 11.67%.
2022 Net Income Increased 5.5% Year-over-Year to a Record $22.1 Million
2022 Diluted Earnings Per Share Increased 16.3% Year-over-Year to a Record $1.93 Per Share

LEBANON, Ohio--LCNB Corp. ("LCNB", “the Company”, or “the Bank”) (NASDAQ: LCNB) today announced financial results for the three and twelve months ended December 31, 2022.

Commenting on the financial results, LCNB President and Chief Executive Officer Eric Meilstrup said, “We achieved record net income, earnings per share, and net loans for the full year and fourth quarter ended December 31, 2022. LCNB had another strong year of loan growth and overall operating performance as we continue to attract new assets and new customers to LCNB. Our performance in 2022 demonstrates LCNB’s strong team of experienced and dedicated bankers, the value we provide our local communities, and our strategic focus on producing consistent and sustainable financial results. ”

“The strength of LCNB’s balance sheet and asset quality provides us with the flexibility to manage and grow the Bank during an increasingly uncertain economic cycle, while we continue to focus on returning capital to shareholders. For the twelve-months ended December 31, 2022, average total deposits increased 5.4%, our net interest margin expanded 10 basis points to 3.55%, and non-performing loans to total loans decreased from 0.11% at December 31, 2021 to 0.03% at December 31, 2022. These trends, combined with stable non-interest expense, successfully offset declines in non-interest income to drive record net income and earnings per share, while expanding returns on assets, equity, and tangible equity,” continued Mr. Meilstrup.

“LCNB also returned a record amount of capital back to shareholders in 2022 through our dividend policy and share repurchase program. We believe LCNB is well positioned for continued growth and strong levels of profitability, even as we expect a more challenging banking landscape in 2023. This is a testament to LCNB’s compelling business model, strong capital and liquidity levels, disciplined credit culture and outstanding team,” concluded Mr. Meilstrup.

Income Statement
Net income for the 2022 fourth quarter was a quarterly record of $6,408,000, a 13.9% increase as compared to $5,627,000 for the same period last year. Earnings per basic and diluted share for the 2022 fourth quarter were a quarterly record of $0.57, an increase of 26.7% as compared to $0.45 for the same period last year. Net income for the twelve-month period ended December 31, 2022, was an annual record of $22,128,000, representing an increase of 5.5% as compared to $20,974,000 for the same period last year. Earnings per basic and diluted share for the twelve-month period ended December 31, 2022, were an annual record of $1.93, representing an increase of 16.3% as compared to $1.66 for the same period last year.




Net interest income for the three months ended December 31, 2022, increased 13.3% to $16,208,000, as compared to $14,310,000 for the same period in 2021. Net interest income for the twelve-month period ended December 31, 2022, increased 6.9% to $61,042,000, as compared to $57,124,000 for 2021. Favorably contributing to the variance for the three-and twelve-month periods were overall growth in the loan portfolio and higher average rates earned on the loan and debt securities portfolios. Growth in the taxable debt securities and loan portfolios also benefited interest income for the twelve-month period. For the 2022 fourth quarter, LCNB’s net interest margin expanded to 3.77%, from 3.34% for the same period last year. For the 2022 full year, LCNB’s net interest margin was 3.55%, compared to 3.45% in 2021.

Non-interest income for the three months ended December 31, 2022, was $3,629,000, compared to $4,347,000 for the same period last year. For the twelve months ended December 31, 2022, non-interest income was $14,288,000, compared to $16,232,000 for the same period last year. The primary drivers of the fourth quarter and twelve-month year-over-year changes in non-interest income were decreased fiduciary income, reduced gains from sales of loans and debt securities, and lower other operating income. Fiduciary income decreased because the fair value of wealth management assets, upon which fees are calculated, decreased due to current market conditions, even though the number of accounts increased. The lower other operating income for the full year was partially due to the absence of a one-time $508,000 Ohio Financial Institutions Tax refund recognized in 2021.

Non-interest expense for the three months ended December 31, 2022, was $246,000 lower than the comparable period in 2021. For the twelve months ended December 31, 2022, non-interest expense increased $94,000 from the comparable period in 2021. Other non-interest expense for the twelve-months ended December 31, 2022, included $471,000 in losses from the sales of two office buildings as a result of our branch consolidation strategy, which was offset by an $866,000 gain from the sale of other real estate owned recognized during the 2022 second quarter.

Capital Allocation
LCNB invested $23,660,000 in its share repurchase program through 2022, repurchasing 1,212,634 shares of its outstanding stock at an average price of $19.47 per share. This equates to approximately 9.8% of the Company’s outstanding common stock prior to the repurchase. During the 2022 fourth quarter, LCNB invested $678,000 in its share repurchase program, repurchasing 40,178 shares of its outstanding stock at an average price of $16.87 per share. At December 31, 2022, 339,054 shares remained under its May 27, 2022 share repurchase program.

For the full year ended December 31, 2022, LCNB paid $0.81 per share in dividends, a 5.2% increase from $0.77 per share for the full year ended December 31, 2021. On November 21, 2022, LCNB’s Board of Directors approved a 5.0% increase in the Company’s regular quarterly cash dividend payment from $0.20 per share to $0.21 per share. Since 2018, LCNB’s regular cash dividend payment has increased at a compound annual growth rate of 5.7%.

Balance Sheet
Total assets at December 31, 2022, increased by $15,492,000 to a record $1.92 billion from $1.90 billion at December 31, 2021. Net loans at December 31, 2022, increased 2.3% to a record $1.40 billion, compared to $1.36 billion at December 31, 2021.

Total deposits at December 31, 2022, decreased 1.5% to $1.60 billion, compared to $1.63 billion at December 31, 2021, as LCNB experiences greater competition for interest-bearing accounts along with seasonal deposit trends of certain public fund deposit relationships.

Assets Under Management
Total assets managed at December 31, 2022, were $3.10 billion, compared to $3.14 billion at December 31, 2021. The 1.5% year-over-year decrease in total assets managed was primarily due to a decrease in the fair value of managed assets at LCNB’s Wealth Management group associated with a challenging capital market environment in 2022 and a decrease in cash management accounts.

Asset Quality
In the 2022 fourth quarter consolidated condensed statements of income, LCNB recorded a net loan loss recovery of $19,000, compared to a net loan loss recovery of $508,000 for the 2021 fourth quarter. For the twelve months ended December 31, 2022, LCNB recorded a provision for loan losses of $250,000, compared to a net loan loss recovery of $269,000 for the twelve months ended December 31, 2021.




Net loan recoveries for the 2022 fourth quarter were $21,000, compared to net loan recoveries of $186,000 for the same period last year. For the 2022 twelve-month period, net loan charge-offs were $110,000 or 0.01% of average loans, compared to net loan recoveries during 2021 of $47,000 or 0.00% of average loans.

Total nonperforming loans, which includes non-accrual loans and loans past due 90 days or more and still accruing interest decreased $1,107,000, from $1,537,000 or 0.11% of total loans at December 31, 2021, to $430,000 or 0.03% of total loans at December 31, 2022. Nonperforming assets to total assets was 0.02% at December 31, 2022, compared to 0.08% at December 31, 2021.

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.

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, 2021, 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.the disruption of global, national, state, and local economies associated with the COVID-19 pandemic and the Russia/Ukraine conflict, which could affect LCNB's liquidity and capital positions, impair the ability of our borrowers to repay outstanding loans, impair collateral values, and further increase the allowance for credit losses;
4.LCNB’s ability to integrate future acquisitions may be unsuccessful, or may be more difficult, time-consuming, or costly than expected;
5.LCNB may incur increased loan charge-offs in the future;
6.LCNB may face competitive loss of customers;
7.changes in the interest rate environment, which may include continued interest rate increases, may have results on LCNB’s operations materially different from those anticipated by LCNB’s market risk management functions;
8.changes in general economic conditions and increased competition could adversely affect LCNB’s operating results;
9.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;
10.LCNB may experience difficulties growing loan and deposit balances;
11.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;
12.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;



13.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;
14.adverse weather events and natural disasters and global and/or national epidemics; and
15.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 ("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.


EX-99.2 3 lcnbform8-k12312022xex992.htm EX-99.2 Document

Exhibit 99.2

LCNB Corp. and Subsidiaries
Financial Highlights
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended
Twelve Months Ended
12/31/2022
9/30/2022
6/30/2022
3/31/2022
12/31/2021
12/31/2022
12/31/2021
Condensed Income Statement
Interest income
$ 17,719  16,704  16,208  15,122  15,189  65,753  61,177 
Interest expense
1,511  1,260  1,041  899  879  4,711  4,053 
Net interest income
16,208  15,444  15,167  14,223  14,310  61,042  57,124 
Provision for (recovery of) loan losses
(19) (157) 377  49  (508) 250  (269)
Net interest income after provision for (recovery of) loan losses
16,227  15,601  14,790  14,174  14,818  60,792  57,393 
Non-interest income
3,629  3,581  3,528  3,550  4,347  14,288  16,232 
Non-interest expense
12,065  12,350  11,469  12,250  12,311  48,134  48,040 
Income before income taxes
7,791  6,832  6,849  5,474  6,854  26,946  25,585 
Provision for income taxes
1,383  1,253  1,231  951  1,227  4,818  4,611 
Net income
$ 6,408  5,579  5,618  4,523  5,627  22,128  20,974 
Supplemental Income Statement Information
Amort/Accret income on acquired loans
$ 249  144  61  66  116  520  713 
Tax-equivalent net interest income
$ 16,257  15,495  15,217  14,273  14,365  61,242  57,354 
Per Share Data
Dividends per share
$ 0.21  0.20  0.20  0.20  0.20  0.81  0.77 
Basic earnings per common share
$ 0.57  0.49  0.49  0.38  0.45  1.93  1.66 
Diluted earnings per common share
$ 0.57  0.49  0.49  0.38  0.45  1.93  1.66 
Book value per share
$ 17.82  17.31  17.84  18.14  19.22  17.82  19.22 
Tangible book value per share
$ 12.48  11.97  12.53  12.84  14.33  12.48  14.33 
Weighted average common shares outstanding:
Basic
11,211,328  11,284,225  11,337,805  11,818,614  12,370,702  11,410,981  12,589,605 
Diluted
11,211,328  11,284,225  11,337,805  11,818,614  12,370,702  11,410,981  12,589,613 
Shares outstanding at period end
11,259,080  11,293,639  11,374,515  11,401,503  12,414,956  11,259,080  12,414,956 
Selected Financial Ratios
Return on average assets
1.34  % 1.15  % 1.18  % 0.96  % 1.18  % 1.16  % 1.13  %
Return on average equity
12.90  % 10.80  % 10.96  % 8.13  % 9.33  % 10.62  % 8.71  %
Return on average tangible common equity 18.59  % 15.30  % 15.52  % 11.11  % 12.51  % 14.96  % 11.67  %
Dividend payout ratio
36.84  % 40.82  % 40.82  % 52.63  % 44.44  % 41.97  % 46.39  %
Net interest margin (tax equivalent)
3.77  % 3.54  % 3.54  % 3.35  % 3.34  % 3.55  % 3.45  %
Efficiency ratio (tax equivalent)
60.67  % 64.74  % 61.18  % 68.73  % 65.79  % 63.73  % 65.28  %
Selected Balance Sheet Items
Cash and cash equivalents
$ 22,701  29,460  31,815  19,941  18,136 
Debt and equity securities
323,167  325,801  337,952  330,715  345,649 
Loans:
Commercial and industrial
$ 120,236  114,694  114,971  105,805  101,792 
Commercial, secured by real estate
938,022  908,130  905,703  906,140  889,108 
Residential real estate
305,575  316,669  315,930  328,034  334,547 
Consumer
28,290  29,451  30,308  32,445  34,190 
  Agricultural
10,054  8,630  7,412  7,980  10,647 
Other, including deposit overdrafts
81  52  81  45  122 
Deferred net origination fees
(980) (937) (928) (928) (961)
  Loans, gross
1,401,278  1,376,689  1,373,477  1,379,521  1,369,445 
Less allowance for loan losses
5,646  5,644  5,833  5,530  5,506 
  Loans, net
$ 1,395,632  1,371,045  1,367,644  1,373,991  1,363,939 



Three Months Ended
Twelve Months Ended
12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 12/31/2022 12/31/2021
Selected Balance Sheet Items, continued
Total earning assets
$ 1,726,902  1,714,196  1,722,853  1,712,115  1,716,420 
Total assets
1,919,121  1,904,700  1,912,627  1,899,630  1,903,629 
Total deposits
1,604,970  1,657,370  1,658,825  1,636,606  1,628,819 
Short-term borrowings
71,455  4,000  5,000  24,746  — 
Long-term debt
19,072  24,539  25,000  10,000  10,000 
Total shareholders’ equity
200,675  195,439  202,960  206,875  238,604 
Equity to assets ratio
10.46  % 10.26  % 10.61  % 10.89  % 12.53  %
Loans to deposits ratio
87.31  % 83.06  % 82.80  % 84.29  % 84.08  %
Tangible common equity (TCE)
$ 140,498  135,149  142,557  146,360  177,949 
Tangible common assets (TCA)
1,858,944  1,844,410  1,852,224  1,839,115  1,842,974 
TCE/TCA
7.56  % 7.33  % 7.70  % 7.96  % 9.66  %
Selected Average Balance Sheet Items
Cash and cash equivalents
$ 24,330  35,763  28,787  32,826  29,614  30,364  36,648 
Debt and equity securities
323,195  338,299  338,149  340,666  348,150  335,051  319,619 
Loans
$ 1,383,809  1,384,520  1,375,710  1,376,926  1,351,762  1,380,272  1,329,072 
Less allowance for loan losses
5,647  5,830  5,532  5,503  5,843  5,629  5,701 
Net loans
$ 1,378,162  1,378,690  1,370,178  1,371,423  1,345,919  1,374,643  1,323,371 
Total earning assets
$ 1,711,524  1,736,031  1,722,503  1,727,335  1,708,392  1,724,350  1,663,567 
Total assets
1,903,338  1,928,868  1,912,574  1,917,226  1,896,530  1,915,431  1,851,177 
Total deposits
1,637,201  1,669,932  1,655,389  1,646,627  1,615,020  1,652,309  1,567,680 
Short-term borrowings
21,433  5,728  18,263  12,503  893  14,482  821 
Long-term debt
23,855  24,920  12,637  10,000  14,402  17,910  16,148 
Total shareholders’ equity
197,014  205,051  205,645  225,725  239,174  208,271  240,823 
Equity to assets ratio
10.35  % 10.63  % 10.75  % 11.77  % 12.61  % 10.87  % 13.01  %
Loans to deposits ratio
84.52  % 82.91  % 83.10  % 83.62  % 83.70  % 83.54  % 84.78  %
Asset Quality
Net charge-offs (recoveries)
$ (21) 32  74  25  (186) 110  (47)
Non-accrual loans
$ 391  465  599  1,455  1,481  391  1,481 
Loans past due 90 days or more and still accruing
39  —  —  —  56  39  56 
Total nonperforming loans
$ 430  465  599  1,455  1,537  430  1,537 
Net charge-offs (recoveries) to average loans
(0.01) % 0.01  % 0.02  % 0.01  % (0.05) % 0.01  % 0.00  %
Allowance for loan losses to total loans
0.40  % 0.41  % 0.42  % 0.40  % 0.40  % 0.40  % 0.40  %
Nonperforming loans to total loans
0.03  % 0.03  % 0.04  % 0.11  % 0.11  % 0.03  % 0.11  %
Nonperforming assets to total assets
0.02  % 0.02  % 0.03  % 0.08  % 0.08  % 0.02  % 0.08  %
Assets Under Management
LCNB Corp. total assets
$ 1,919,121  1,904,700  1,912,627  1,899,630  1,903,629 
Trust and investments (fair value)
678,366  611,409  625,984  700,353  722,093 
Mortgage loans serviced
148,412  145,317  153,557  152,271  149,382 
Cash management
1,925  53,199  38,914  75,302  34,009 
Brokerage accounts (fair value)
347,737  314,144  303,663  326,290  334,670 
Total assets managed
$ 3,095,561  3,028,769  3,034,745  3,153,846  3,143,783 



LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS

(Dollars in thousands)
December 31, 2022 (Unaudited)
December 31, 2021
ASSETS:
Cash and due from banks $ 20,244  16,810 
Interest-bearing demand deposits 2,457  1,326 
Total cash and cash equivalents 22,701  18,136 
Investment securities:
Equity securities with a readily determinable fair value, at fair value 2,273  2,546 
Equity securities without a readily determinable fair value, at cost 2,099  2,099 
Debt securities, available-for-sale, at fair value 289,850  308,177 
Debt securities, held-to-maturity, at cost 19,878  22,972 
Federal Reserve Bank stock, at cost 4,652  4,652 
Federal Home Loan Bank stock, at cost 4,415  5,203 
Loans, net 1,395,632  1,363,939 
Premises and equipment, net 33,042  35,385 
Operating leases right of use asset 6,248  6,357 
Goodwill 59,221  59,221 
Core deposit and other intangibles 1,827  2,473 
Bank owned life insurance 44,298  43,224 
Interest receivable 7,482  7,999 
Other assets 25,503  21,246 
TOTAL ASSETS $ 1,919,121  1,903,629 
LIABILITIES:    
Deposits:    
Noninterest-bearing $ 505,824  501,531 
Interest-bearing 1,099,146  1,127,288 
Total deposits 1,604,970  1,628,819 
Short-term borrowings 71,455  — 
Long-term debt 19,072  10,000 
Operating lease liabilities 6,370  6,473 
Accrued interest and other liabilities 16,579  19,733 
TOTAL LIABILITIES 1,718,446  1,665,025 
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 14,270,550 and 14,213,792 shares at December 31, 2022 and 2021, respectively; outstanding 11,259,080 and 12,414,956 shares at December 31, 2022 and 2021, respectively
144,069  143,130 
Retained earnings 139,249  126,312 
Treasury shares at cost, 3,011,470 and 1,798,836 shares at December 31, 2022 and 2021, respectively
(52,689) (29,029)
Accumulated other comprehensive loss, net of taxes (29,954) (1,809)
TOTAL SHAREHOLDERS' EQUITY 200,675  238,604 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,919,121  1,903,629 



LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended December 31, Twelve Months Ended December 31,
  2022 2021 2022 2021
INTEREST INCOME:
Interest and fees on loans $ 15,887  13,770  59,247  56,142 
Dividends on equity securities with a readily determinable fair value 16  13  56  51 
Dividends on equity securities without a readily determinable fair value 13  29  21 
Interest on debt securities, taxable 1,355  1,018  5,027  3,668 
Interest on debt securities, non-taxable 186  208  753  864 
Other investments 262  175  641  431 
TOTAL INTEREST INCOME 17,719  15,189  65,753  61,177 
INTEREST EXPENSE:        
Interest on deposits 1,189  769  3,682  3,578 
Interest on short-term borrowings 96  416 
Interest on long-term debt 226  108  613  469 
TOTAL INTEREST EXPENSE 1,511  879  4,711  4,053 
NET INTEREST INCOME 16,208  14,310  61,042  57,124 
PROVISION FOR (RECOVERY OF) LOAN LOSSES (19) (508) 250  (269)
NET INTEREST INCOME AFTER PROVISION FOR (RECOVERY OF) LOAN LOSSES 16,227  14,818  60,792  57,393 
NON-INTEREST INCOME:        
Fiduciary income 1,617  1,715  6,468  6,674 
Service charges and fees on deposit accounts 1,532  1,530  6,190  6,036 
Net gains on sales of debt securities, available-for-sale —  303  —  303 
Bank owned life insurance income 271  269  1,074  1,074 
Gains from sales of loans 292  196  852 
Other operating income 201  238  360  1,293 
TOTAL NON-INTEREST INCOME 3,629  4,347  14,288  16,232 
NON-INTEREST EXPENSE:        
Salaries and employee benefits 7,192  6,976  28,483  27,616 
Equipment expenses 395  446  1,629  1,678 
Occupancy expense, net 767  713  3,067  2,949 
State financial institutions tax 428  440  1,740  1,758 
Marketing 339  361  1,184  1,239 
Amortization of intangibles 113  263  478  1,043 
FDIC insurance premiums, net 133  127  530  492 
ATM Expense 340  436  1,370  1,416 
Computer maintenance and supplies 283  332  1,114  1,213 
Telephone expense 63  64  240  420 
Contracted services 601  612  2,503  2,430 
Other real estate owned, net —  (866)
Other non-interest expense 1,403  1,541  6,662  5,784 
TOTAL NON-INTEREST EXPENSE 12,065  12,311  48,134  48,040 
INCOME BEFORE INCOME TAXES 7,791  6,854  26,946  25,585 
PROVISION FOR INCOME TAXES 1,383  1,227  4,818  4,611 
NET INCOME $ 6,408  5,627  22,128  20,974 
Dividends declared per common share $ 0.21  0.20  0.81  0.77 
Earnings per common share:
Basic 0.57  0.45  1.93  1.66 
Diluted 0.57  0.45  1.93  1.66 
Weighted average common shares outstanding:
Basic 11,211,328  12,370,702  11,410,981  12,589,605 
Diluted 11,211,328  12,370,702  11,410,981  12,589,613