LCNB Corp. Reports Financial Results for the Three Months Ended March 31, 2024

Non-interest income increased 9.7% year-over-year to $3.9 million

Strengthening balance sheet as cash and cash equivalents grew by 3.4% and debt and equity securities decreased by 6.5%

Asset quality remains excellent with total nonperforming loans to total loans of 0.20% at March 31, 2024

LCNB successfully completed the Eagle Financial Bancorp, Inc. acquisition on April 12, 2024

Management expects earnings growth will reaccelerate in the fourth quarter of 2024

LEBANON, Ohio--(BUSINESS WIRE)--LCNB Corp. ("LCNB") (NASDAQ: LCNB) today announced financial results for the three months ended March 31, 2024.

Commenting on the financial results, LCNB President and Chief Executive Officer, Eric Meilstrup said, “Our first quarter performance reflects our near-term focus on integrating the November 2023 Cincinnati Federal acquisition and completing the merger with Eagle Financial Bancorp, Inc. (“EFBI” or “Eagle”), which I am pleased to report closed on April 12, 2024. I am excited by the opportunities underway to leverage the benefits of these two acquisitions and serve compelling communities within the greater Cincinnati region. While we expect one-time merger-related expenses will continue throughout the first half of 2024, we believe we are well positioned for earnings growth to reaccelerate in the fourth quarter of 2024.”

“We are simultaneously pursuing organic growth opportunities while providing our communities with best-in-class and local financial services. Total assets managed by LCNB Wealth Management increased 19.4% year-over-year and are up 8.6% over the past three months. The continued growth of LCNB Wealth Management demonstrates the value our financial, trust, and investment products provide to our local communities,” Mr. Meilstrup continued.

“In addition to the growth strategies underway, we are also focused on maintaining excellent asset quality and pursuing initiatives that strengthen our balance sheet. As we successfully execute these actions over the coming quarters, we believe we will enhance our earnings power, strengthen our competitive advantage, and position LCNB National Bank for long-term success. I am proud of the direction LCNB is headed, and I look forward to updating shareholders on the progress we are making,” concluded Mr. Meilstrup.

Income Statement

Net income for the 2024 first quarter was $1.9 million, compared to net income of $4.2 million for the same period last year. Earnings per basic and diluted share for the 2024 first quarter were $0.15, compared to $0.37 for the same period last year.

Adjusted net income accounts for the impact of one-time merger-related expenses, net of tax, associated with the Cincinnati Federal and EFBI acquisitions. Adjusted net income for the 2024 first quarter was $2.6 million, or $0.20 per diluted share, compared to $4.2 million, or $0.37 per diluted share, for the same period last year.

Net interest income for the three months ended March 31, 2024, was $13.9 million, compared to $13.9 million for the comparable period in 2023. 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 offset by increased interest expense from higher IRA and time certificate balances, increased long-term debt, and interest rate-related variances.

For the 2024 first quarter, LCNB’s tax equivalent net interest margin was 2.73%, compared to 3.28% for the same period last year. The decrease in the net interest margin reflects the current interest rate environment. As depositors moved funds from non-interest bearing deposits into higher rate products, the average rate paid on interest-bearing liabilities increased 142 basis points. During the same period, the average rate earned from interest-earning assets increased a more gradual 66 basis points.

Non-interest income for the three months ended March 31, 2024 was $3.9 million, compared to $3.6 million for the same period last year. The increase in non-interest income for the three-month period was primarily due to higher fiduciary income and higher gains on sales of loans due to a higher volume of loans sold. Management considers various factors when determining the volume of loans to sell, including liquidity needs and sources and pricing available in the secondary market. LCNB's inventory of new loans is also a factor. The first quarter 2024 was the first quarter that LCNB operated in the expanded market it obtained through the merger with Cincinnati Federal. Partially offsetting the increases in non-interest income during the quarter was a $214,000 pretax loss on the sale of approximately $9.8 million of debt securities.

Non-interest expense for the three months ended March 31, 2024 was $2.9 million higher than the comparable period in 2023, primarily due to higher personnel and operating expenses primarily associated with the integration of Cincinnati Federal and $775,000 of one-time expenses associated with the Cincinnati Federal and EFBI acquisitions.

Capital Allocation

During the three months ended March 31, 2024, LCNB did not repurchase any of its outstanding shares. At March 31, 2024, LCNB had 315,047 shares remaining under its February 2023 share repurchase program.

For the first quarter ended March 31, 2024, LCNB paid $0.22 per share in dividends, a 4.8% increase from $0.21 per share in the first quarter of last year.

Balance Sheet

Total assets at March 31, 2024 increased 18.6% to $2.28 billion from $1.92 billion at March 31, 2023. Net loans at March 31, 2024 increased 18.7% to $1.65 billion, compared to $1.39 billion at March 31, 2023. The year-over-year improvement resulted primarily from the contribution of continued organic loan growth and the completion of the Cincinnati Federal acquisition. Not including the Cincinnati Federal acquisition, total net loans increased 2.0% organically, or by $27.8 million from the same period a year ago.

Loans held for sale totaled $75.6 million at March 31, 2024 and are primarily composed of loans scheduled to be sold to an investor during the second quarter of 2024. LCNB anticipates that proceeds from the sale will be used for general corporate purposes, which may include supporting loan growth, paying down short-term borrowings and long-term debt, and adding to liquidity balances.

Total deposits at March 31, 2024 increased 15.9% to $1.86 billion, compared to $1.60 billion at March 31, 2023. Not including the Cincinnati Federal acquisition, total deposits increased 4.5% organically, or by $71.4 million since March 31, 2023.

Assets Under Management

Total assets managed at March 31, 2024 were a record $3.98 billion, compared to $3.16 billion at March 31, 2023. The year-over-year increase in total assets managed was primarily due to the Cincinnati Federal acquisition and organic growth in LCNB Corp. total assets, trust and investments, 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. Mortgage loans serviced increased primarily due to the Cincinnati Federal acquisition.

Asset Quality

For the 2024 first quarter, LCNB recorded a provision for credit losses of $125,000, compared to a recovery of credit losses of $57,000 for the 2023 first quarter.

Net charge-offs for the 2024 first quarter were $45,000, or 0.01% of average loans, compared to net charge-offs of $16,000, or 0.00% of average loans, annualized, for the same period last year.

Total nonperforming loans, which include non-accrual loans and loans past due 90 days or more and still accruing interest, were $3.2 million, or 0.19% of total loans at March 31, 2024, compared to $701,000 or 0.05% of total loans at March 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. The nonperforming assets to total assets ratio was 0.14% at March 31, 2024, compared to 0.04% at March 31, 2023.

Merger Agreement with Eagle Financial Bancorp, Inc.

On April 12, 2024, LCNB completed the acquisition of EFBI and the merger of EAGLE.bank with and into LCNB National Bank. EAGLE.bank operated three full-service banking offices in Cincinnati, Ohio.

With the addition of EFBI, LCNB now operates 36 full-service banking offices in Ohio and one branch office in Northern Kentucky. Assuming the transaction had been completed as of March 31, 2024, LCNB would have had total deposits of $1.99 billion and total loans of $1.79 billion at March 31, 2024.

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 and Northern Kentucky. 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 also provides community-oriented banking services to customers in Northern Kentucky through a bank office in 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 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, 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 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. LCNB’s ability to integrate recent and future acquisitions 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, which may include further interest rate increases, 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 geopolitical relations and/or conflicts could create financial market uncertainty and have negative impacts on commodities and currency, which could adversely affect LCNB's operating results and financial condition;
11. difficulties with technology or data security breaches, including cyberattacks, 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
	03-31-2024			12-31-2023			09-30-2023			06-30-2023			03-31-2023
Condensed Income Statement
Interest income	$	24,758		$	23,310			19,668			18,703			17,918
Interest expense		10,863			8,651			6,097			4,526			3,976
Net interest income		13,895			14,659			13,571			14,177			13,942
Provision for (recovery of) credit losses		125			2,218			(114	)		30			(57	)
Net interest income after provision for (recovery of) credit losses		13,770			12,441			13,685			14,147			13,999
Non-interest income		3,929			4,606			3,578			3,646			3,581
Non-interest expense		15,472			17,576			12,244			12,078			12,525
Income (loss) before income taxes		2,227			(529	)		5,019			5,715			5,055
Provision for (benefit from) income taxes		312			(236	)		949			1,021			898
Net income (loss)	$	1,915		$	(293	)	$	4,070		$	4,694			4,157
Supplemental Income Statement Information
Amort/Accret income on acquired loans	$	776		$	410			—			—			75
Tax-equivalent net interest income	$	13,933		$	14,703			13,617			14,223			13,989
Per Share Data
Dividends per share	$	0.22		$	0.22			0.21			0.21			0.21
Basic earnings (loss) per common share	$	0.15		$	(0.02	)		0.37			0.42			0.37
Diluted earnings (loss) per common share	$	0.15		$	(0.02	)		0.37			0.42			0.37
Book value per share	$	17.67		$	17.86			18.10			18.20			18.22
Tangible book value per share	$	11.03		$	11.16			12.72			12.81			12.86
Weighted average common shares outstanding:
Basic		13,112,302			12,378,289			11,038,720			11,056,308			11,189,170
Diluted		13,112,302			12,378,289			11,038,720			11,056,308			11,189,170
Shares outstanding at period end		13,224,276			13,173,569			11,123,382			11,116,080			11,202,063
Selected Financial Ratios
Return on average assets		0.34	%		(0.05	)%		0.82	%		0.98	%		0.88	%
Return on average equity		3.28	%		(0.53	)%		7.92	%		9.22	%		8.33	%
Return on average tangible common equity		4.39	%		(0.72	)%		11.21	%		13.07	%		11.85	%
Dividend payout ratio		146.67	%		NM			56.76	%		50.00	%		56.76	%
Net interest margin (tax equivalent)		2.72	%		2.99	%		3.04	%		3.28	%		3.28	%
Efficiency ratio (tax equivalent)		86.62	%		91.02	%		71.21	%		67.59	%		71.29	%
Selected Balance Sheet Items
Cash and cash equivalents	$	32,951		$	39,723			43,422			26,020			31,876
Debt and equity securities		306,775			318,723			309,094			314,763			328,194
Loans:
Commercial and industrial	$	122,229		$	120,411			125,751			127,553			124,240
Commercial, secured by real estate		1,099,601			1,107,556			981,787			961,173			932,208
Residential real estate		398,250			459,073			313,286			312,338			303,051
Consumer		24,137			25,578			27,018			29,007			28,611
Agricultural		12,647			10,952			11,278			9,955			7,523
Other, including deposit overdrafts		73			82			80			69			62
Deferred net origination fees		(583	)		(181	)		(796	)		(844	)		(865	)
Loans, gross		1,656,354			1,723,471			1,458,404			1,439,251			1,394,830
Less allowance for credit losses		10,557			10,525			7,932			7,956			7,858
Loans, net	$	1,645,797			1,712,946			1,450,472			1,431,295			1,386,972
Loans held for sale		75,581			—			—			—			—
NM - Not Meaningful
	Three Months Ended
	03-31-2024			12-31-2023			09-30-2023			06-30-2023			03-31-2023
Selected Balance Sheet Items, continued
Allowance for Credit Losses on Loans:
Allowance for credit losses, beginning of period	$	10,525			7,932			7,956			7,858			5,646
Cumulative change in accounting principle - ASC 326		—			—			—			—			2,196
Fair value adjustment for purchased credit deteriorated loans		—			493			—			—			—
Provision for credit losses		77			2,203			9			131			32
Losses charged off		(78	)		(126	)		(57	)		(49	)		(36	)
Recoveries		33			23			24			16			20
Allowance for credit losses, end of period	$	10,557			10,525			7,932			7,956			7,858
Total earning assets	$	1,971,130		$	2,045,382			1,787,796			1,756,157		$	1,736,829
Total assets		2,283,151			2,291,592			1,981,668			1,950,763			1,924,531
Total deposits		1,858,493			1,824,389			1,616,890			1,596,709			1,603,881
Short-term borrowings		10,000			97,395			30,000			112,289			76,500
Long-term debt		162,638			113,123			112,641			18,122			18,598
Total shareholders’ equity		233,663			235,303			201,349			202,316			204,072
Equity to assets ratio		10.23	%		10.27	%		10.16	%		10.37	%		10.60	%
Loans to deposits ratio		89.12	%		94.47	%		90.20	%		90.14	%		86.97	%
Tangible common equity (TCE)	$	145,850		$	146,999			141,508			142,362			144,006
Tangible common assets (TCA)		2,195,338			2,203,288			1,921,827			1,890,809			1,864,457
TCE/TCA		6.64	%		6.67	%		7.36	%		7.53	%		7.72	%
Selected Average Balance Sheet Items
Cash and cash equivalents	$	51,366		$	49,436			36,177			30,742			35,712
Debt and equity securities		310,771			310,274			313,669			321,537			327,123
Loans, including loans held for sale	$	1,722,568		$	1,622,911			1,451,153			1,405,939			1,389,385
Less allowance for credit losses on loans		10,523			8,826			7,958			7,860			7,522
Net loans	$	1,712,045			1,614,085			1,443,195			1,398,079			1,381,863
Total earning assets, including loans held for sale	$	2,056,656		$	1,952,121			1,775,713			1,737,256			1,729,008
Total assets		2,294,766			2,182,477			1,971,269			1,927,956			1,921,742
Total deposits		1,824,546			1,759,677			1,610,508			1,604,346			1,583,857
Short-term borrowings		65,052			64,899			63,018			79,485			94,591
Long-term debt		150,177			115,907			72,550			18,514			18,983
Total shareholders’ equity		235,119			220,678			203,967			204,085			202,419
Equity to assets ratio		10.25	%		10.11	%		10.35	%		10.59	%		10.53	%
Loans to deposits ratio		94.41	%		92.23	%		90.11	%		87.63	%		87.72	%
Asset Quality
Net charge-offs	$	45		$	102			33			33			16
Other real estate owned		—			—			—			—			—
Non-accrual loans	$	2,719		$	80			85			451			701
Loans past due 90 days or more and still accruing		524			72			176			256			—
Total nonperforming loans	$	3,243			152			261			707			701
Net charge-offs to average loans		0.01	%		0.02	%		0.01	%		0.01	%		0.00	%
Allowance for credit losses on loans to total loans		0.64	%		0.61	%		0.54	%		0.55	%		0.56	%
Nonperforming loans to total loans		0.20	%		0.01	%		0.02	%		0.05	%		0.05	%
Nonperforming assets to total assets		0.14	%		0.01	%		0.01	%		0.04	%		0.04	%
	Three Months Ended
	03-31-2024			12-31-2023			09-30-2023			06-30-2023			03-31-2023
Assets Under Management
LCNB Corp. total assets	$	2,283,151			2,291,592			1,981,668			1,950,763			1,924,531
Trust and investments (fair value)		890,800			806,770			731,342			744,149			716,578
Mortgage loans serviced		386,490			391,800			146,483			143,093			142,167
Cash management		13,314			2,375			2,445			2,668			1,831
Brokerage accounts (fair value)		411,211			392,390			368,854			384,889			374,066
Total assets managed	$	3,984,966			3,884,927			3,230,792			3,225,562			3,159,173
Reconciliation of Net Income Less Tax-Effected Merger-Related Costs
Net income (loss)	$	1,915			(293	)		4,070			4,694			4,157
Merger expenses		775			3,914			302			415			25
Provision for credit losses on non-PCD loans		—			1,722			—			—			—
Tax effect		(90	)		(1,102	)		(3	)		(63	)		(4	)
Adjusted net income	$	2,600			4,241			4,369			5,046			4,178
Adjusted basic and diluted earnings per share	$	0.20		$	0.34			0.40			0.45			0.37
Adjusted return on average assets		0.46	%		0.77	%		0.88	%		1.05	%		0.88	%
Adjusted return on average equity		4.45	%		7.62	%		8.50	%		9.92	%		8.37	%

	Three Months Ended March 31,													Three Months Ended December 31,
	2024							2023						2023
	Average Outstanding Balance			Interest Earned/ Paid		Average Yield/ Rate		Average Outstanding Balance			Interest Earned/ Paid	Average Yield/ Rate		Average Outstanding Balance			Interest Earned/ Paid	Average Yield/ Rate
Loans (1)	$	1,722,568		22,682		5.30	%	$	1,389,385		16,143	4.71	%	$	1,622,911		21,113	5.16	%
Interest-bearing demand deposits		23,317		324		5.59	%		12,500		157	5.09	%		18,936		280	5.87	%
Federal Reserve Bank stock		5,509		(4	)	(0.29	)%		4,652		—	—	%		4,930		144	11.59	%
Federal Home Loan Bank stock		16,239		341		8.45	%		6,796		62	3.70	%		12,607		273	8.59	%
Investment securities:
Equity securities		4,995		40		3.22	%		4,337		37	3.46	%		4,415		62	5.57	%
Debt securities, taxable		265,164		1,232		1.87	%		286,369		1,343	1.90	%		265,736		1,273	1.90	%
Debt securities, non-taxable (2)		18,864		181		3.86	%		24,969		223	3.62	%		22,586		209	3.67	%
Total earnings assets		2,056,656		24,796		4.85	%		1,729,008		17,965	4.21	%		1,952,121		23,354	4.75	%
Non-earning assets		248,633							200,256						239,182
Allowance for credit losses		(10,523	)						(7,522	)					(8,826	)
Total assets	$	2,294,766						$	1,921,742					$	2,182,477
Interest-bearing demand and money market deposits	$	643,199		3,917		2.45	%	$	505,382		1,245	1.00	%	$	574,349		2,710	1.87	%
Savings deposits		368,049		206		0.23	%		415,873		139	0.14	%		402,791		323	0.32	%
IRA and time certificates		370,130		4,067		4.42	%		185,297		1,072	2.35	%		302,434		3,321	4.36	%
Short-term borrowings		65,052		935		5.78	%		94,591		1,304	5.59	%		64,899		918	5.61	%
Long-term debt		150,177		1,738		4.65	%		18,983		216	4.61	%		115,907		1,379	4.72	%
Total interest-bearing liabilities		1,596,607		10,863		2.74	%		1,220,126		3,976	1.32	%		1,460,380		8,651	2.35	%
Demand deposits		443,168							477,305						480,103
Other liabilities		19,872							21,892						21,316
Equity		235,119							202,419						220,678
Total liabilities and equity	$	2,294,766						$	1,921,742					$	2,182,477
Net interest rate spread (3)						2.11	%					2.89	%					2.40	%
Net interest income and net interest margin on a taxable-equivalent basis (4)				13,933		2.72	%				13,989	3.28	%				14,703	2.99	%
Ratio of interest-earning assets to interest-bearing liabilities		128.81	%						141.71	%					133.67	%

(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 (Dollars in thousands)
	March 31, 2024 (Unaudited)			December 31, 2023
ASSETS:
Cash and due from banks	$	24,950			36,535
Interest-bearing demand deposits		8,001			3,188
Total cash and cash equivalents		32,951			39,723
Investment securities:
Equity securities with a readily determinable fair value, at fair value		1,334			1,336
Equity securities without a readily determinable fair value, at cost		3,666			3,666
Debt securities, available-for-sale, at fair value		262,786			276,601
Debt securities, held-to-maturity, at cost, net of allowance for credit losses of $5 and $5 at March 31, 2024 and December 31, 2023, respectively		16,746			16,858
Federal Reserve Bank stock, at cost		5,774			5,086
Federal Home Loan Bank stock, at cost		16,469			15,176
Loans, net of allowance for credit losses of $10,557 and 10,525 at March 31, 2024 and December 31, 2023, respectively		1,645,797			1,712,946
Loans held for sale		75,581			—
Premises and equipment, net		36,690			36,302
Operating lease right-of-use assets		5,838			6,000
Goodwill		79,559			79,509
Core deposit and other intangibles, net		8,903			9,494
Bank-owned life insurance		50,165			49,847
Interest receivable		9,115			8,405
Other assets, net		31,777			30,643
TOTAL ASSETS	$	2,283,151			2,291,592
LIABILITIES:
Deposits:
Noninterest-bearing	$	435,580			462,267
Interest-bearing		1,422,913			1,362,122
Total deposits		1,858,493			1,824,389
Short-term borrowings		10,000			97,395
Long-term debt		162,638			113,123
Operating lease liabilities		6,123			6,261
Accrued interest and other liabilities		12,234			15,121
TOTAL LIABILITIES		2,049,488			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 16,435,659 and 16,384,952 shares at March 31, 2024 and December 31, 2023, respectively; outstanding 13,224,276 and 13,173,569 shares at March 31, 2024 and December 31, 2023, respectively		174,082			173,637
Retained earnings		139,050			140,017
Treasury shares at cost, 3,211,383 and 3,211,383 shares at March 31, 2024 and December 31, 2023, respectively		(56,015	)		(56,015	)
Accumulated other comprehensive loss, net of taxes		(23,454	)		(22,336	)
TOTAL SHAREHOLDERS' EQUITY		233,663			235,303
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	2,283,151		$	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 March 31,
		2024		2023
INTEREST INCOME:
Interest and fees on loans	$	22,682		16,143
Dividends on equity securities:
With a readily determinable fair value		9		17
Without a readily determinable fair value		31		20
Interest on debt securities:
Taxable		1,232		1,343
Non-taxable		143		176
Other investments		661		219
TOTAL INTEREST INCOME		24,758		17,918
INTEREST EXPENSE:
Interest on deposits		8,190		2,456
Interest on short-term borrowings		935		1,304
Interest on long-term debt		1,738		216
TOTAL INTEREST EXPENSE		10,863		3,976
NET INTEREST INCOME		13,895		13,942
PROVISION FOR (RECOVERY OF) CREDIT LOSSES		125		(57	)
NET INTEREST INCOME AFTER PROVISION FOR (RECOVERY OF) CREDIT LOSSES		13,770		13,999
NON-INTEREST INCOME:
Fiduciary income		1,973		1,740
Service charges and fees on deposit accounts		1,384		1,482
Net gains from sales of debt securities, available-for-sale		(214	)	—
Bank-owned life insurance income		318		271
Net gains from sales of loans		522		6
Other operating income		(54	)	82
TOTAL NON-INTEREST INCOME		3,929		3,581
NON-INTEREST EXPENSE:
Salaries and employee benefits		8,554		7,349
Equipment expenses		390		361
Occupancy expense, net		1,005		963
State financial institutions tax		428		397
Marketing		174		192
Amortization of intangibles		236		111
FDIC insurance premiums, net		504		215
Contracted services		784		641
Merger-related expenses		775		25
Other non-interest expense		2,622		2,271
TOTAL NON-INTEREST EXPENSE		15,472		12,525
INCOME BEFORE INCOME TAXES		2,227		5,055
PROVISION FOR INCOME TAXES		312		898
NET INCOME	$	1,915		4,157
Earnings per common share:
Basic	$	0.15		0.37
Diluted	$	0.15		0.37
Weighted average common shares outstanding:
Basic		13,112,302		11,189,170
Diluted		13,112,302		11,189,170