LEBANON, Ohio--(BUSINESS WIRE)--
LCNB Corp. (OTCBB: LCNB) today announced net income available to common
shareholders of $1,837,000 ($0.27 basic and diluted earnings per common
share) and $4,932,000 ($0.74 basic and diluted earnings per common
share) for the three and nine months ended September 30, 2009,
respectively. This compares to $1,794,000 ($0.27 basic and diluted
earnings per common share) and $4,936,000 ($0.74 basic and diluted
earnings per common share) for the same three and nine-month periods in
2008.
Significantly affecting net income for the 2009 periods were the
provision for loan losses and industry-wide increases in FDIC premium
expense. The provision for loan losses for the three and nine month
periods in 2009 was $664,000 and $970,000, respectively, compared to
$188,000 and $322,000 for the same periods in 2008. The increase in the
provision for loan losses reflects increased loan delinquencies and
current economic conditions. FDIC premiums expensed during the three and
nine months ended September 30, 2009 totaled $317,000 and $926,000,
respectively, compared to $21,000 and $52,000 for the comparable periods
in 2008.
Current economic conditions have contributed to an increase in loan
delinquencies, but LCNB's loan portfolio continues to benefit from
responsible underwriting and lending practices. Net charge-offs for the
first nine months of 2009 and 2008 totaled $639,000 and $322,000,
respectively. Non-accrual loans and loans past due 90 days or more and
still accruing interest totaled $1,781,000 or 0.39% of total loans at
September 30, 2009, compared to $3,087,000 or 0.68% of total loans at
December 31, 2008. 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 totaled approximately $2,424,000 at September 30,
2009, compared to $89,000 at December 31, 2008. Non-accrual loans and
loans past due 90 days or more decreased and other real estate owned
increased largely due to the transfer of commercial real estate property
into the other real estate owned category.
Net interest income for the three and nine months ended September 30,
2009 increased $995,000 and $2,843,000, respectively, over the
comparative periods in 2008 primarily due to growth in interest-earning
assets and a reduction in general market rates.
The increase in net interest income was partially offset by increases of
$266,000 and $1,903,000 in non-interest expense for the three and nine
months ended September 30, 2009, respectively, and the previously
discussed increases in the provision for loan losses. In addition to the
increases in FDIC premium expense, the increase in non-interest expense
was primarily due to increased salaries and wages resulting from annual
increases and an increase in the number of employees. The nine-month
increase in non-interest expense was also due to a $722,000 pension
related charge in the first quarter 2009. Increases in non-interest
expenses were partially offset by decreases in retirement plan costs and
in amortization of intangible assets related to the purchase of three
offices from another bank in 1997. These intangible assets were fully
amortized in 2008.
The pension plan related charge mentioned above is related to the
redesign during the first quarter 2009 of LCNB's retirement program. The
plans were redesigned to provide competitive benefits to employees and
provide more predictable and lower retirement plan costs over the long
term. Because of the redesign, pension plan related balance sheet
accounts were adjusted resulting in an approximate $3.0 million
after-tax increase in other comprehensive income, which is a component
of shareholders' equity, and a $722,000 charge to non-interest expense.
LCNB Corp. is a financial holding company headquartered in Lebanon,
Ohio. Affiliates of LCNB Corp. are LCNB National Bank, with 25 offices
located in Warren, Butler, Montgomery, Clinton, Clermont, and Hamilton
Counties, Ohio, and Dakin Insurance Agency, Inc. Additional information
about LCNB Corp. and information about products and services offered by
LCNB National Bank and Dakin Insurance Agency can be found on the
internet at www.lcnb.com
and www.dakin-ins.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)
Condensed Income Three Months Ended Nine Months Ended
Statement September 30, September 30,
2009 2008 2009 2008
Interest income $ 8,768 8,608 26,034 25,687
Interest expense 2,455 3,290 7,709 10,205
Net interest income 6,313 5,318 18,325 15,482
Provision for loan 664 188 970 322
losses
Net interest income 5,649 5,130 17,355 15,160
after provision
Non-interest income 2,176 2,203 6,517 6,430
Non-interest expense 5,194 4,928 16,878 14,975
Income before income 2,631 2,405 6,994 6,615
taxes
Provision for income 588 611 1,548 1,679
taxes
Net income 2,043 1,794 5,446 4,936
Preferred stock
dividends and 206 - 514 -
discount accretion
Net income available to
common $ 1,837 1,794 4,932 4,936
shareholders
Dividends per common $ 0.16 0.16 0.48 0.48
share
Basic earnings per $ 0.27 0.27 0.74 0.74
common share
Diluted earnings per $ 0.27 0.27 0.74 0.74
common share
Average basic shares 6,687,232 6,687,232 6,687,232 6,687,232
outstanding
Average diluted shares 6,707,746 6,687,232 6,693,032 6,687,232
outstanding
Selected Financial
Ratios
Return on average 1.09 % 1.09 % 1.02 % 1.05 %
assets
Return on average 10.46 % 12.27 % 9.54 % 11.38 %
equity
Dividend payout ratio 59.26 % 59.26 % 64.86 % 64.86 %
Net interest margin 3.94 % 3.68 % 3.93 % 3.74 %
(tax equivalent)
September 30, December 31,
Selected Balance Sheet Items
2009 2008
Investment securities $ 216,801 139,272
Loans 459,998 453,811
Less allowance for loan losses 2,799 2,468
Net loans 457,199 451,343
Total assets 749,806 649,731
Total deposits 639,081 577,622
Short-term borrowings 317 2,206
Long-term debt 25,309 5,000
Total shareholders' equity 79,165 58,116
Shares outstanding at period end 6,687,232 6,687,232
Book value per share $ 9.83 8.69
Equity to assets ratio 10.56 % 8.94 %
Assets Under Management
LCNB Corp. total assets $ 749,806 649,731
Trust and investments (fair value) 186,250 174,775
Mortgage loans serviced 57,111 37,783
Business cash management 19,338 39,979
Brokerage accounts (fair value) 43,912 53,633
Total assets managed $ 1,056,417 955,901
Source: LCNB Corp.
Contact: LCNB Corp.
Stephen P. Wilson, Chairman and CEO, 800-344-BANK
or
Steve P. Foster, President, 800-344-BANK