Lcnb Corporation · NASDAQ:LCNB
Lcnb — Investor Presentation (August 2018)
18 slides from Lcnb's investor presentation, Aug 8, 2018
Slide 1: LCNB Investment Highlights August 2018
LCNB Investment Highlights August 2018
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation, as well as other written or oral communications made from time to time by us, contains certain forward-looking information within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. These statements
Slide 3: Forward-Looking Statements
Forward-Looking Statements · timely development and acceptance of new banking products and services and perceived overall value of these products and services by users; · changes in consumer spending, borrowing and saving habits; · technological changes; · our ability to grow, increase market share
Slide 4: Overview
– LCNB Investment Highlights Overview Stable & Attractive 140 year-old community bank located in attractive markets in southwestern Ohio and Markets Columbus with good demographics, stable home prices, and strong economic activity High and consistent profitability driven by disciplined organic l
Slide 5: Recent Events
– LCNB Investment Highlights Recent Events Highlights of 2Q 2018 LCNB reported quarterly EPS of $0.25 and core EPS of $0.34*. Net interest income continued to increase, growing from $10.2 million in 1Q 2018 to $11.4 million in 2Q 2018. Quarterly core ROAA and ROATCE remained strong at 1.12%* a
Slide 6: The Franchise
– LCNB Investment Highlights The Franchise $1.6 billion in assets and $1.4 billion in deposits, LCNB Branch Map headquartered in Lebanon, Ohio (Warren County) 35 branches in southwestern Ohio, primarily in and around the attractive Cincinnati MSA along with one new branch in the Columbus MSA 1
Slide 7: Management Team
– LCNB Investment Highlights Management Team Experienced management team with an average of 33 years of banking experience and many executives that have worked together for over 20 years Years of Banking Name Experience Title Background Joined LCNB in 1975 and LCNB Board of Directors in 1982. Form
Slide 8: Financial Highlights
LCNB Investment Highlights Financial Highlights LCNB Corp. Calendar Year Ended LTM Quarter Ended LCNB 2013 2014 2015 2016 2017 6/18 9/17 12/17 3/18 6/18 Total Assets 932,338 1,108,066 1,280,531 1,306,799 1,295,638 1,631,442 1,314,319 1,295,638 1,288,791 1,631,442 Gross Loans 574,354 698,956 770,938
Slide 9: ROATCE
LCNB Investment Highlights ROATCE LCNB has consistently delivered solid operating performance and profitability regardless of economic climate, as demonstrated in the chart below. LCNB has exceeded 11% return on average tangible common equity in nine of the last ten years and over the last twelve mo
Slide 10: Consistent Profitability
– LCNB Investment Highlights Consistent Profitability LCNB has had an average ROAA of 1.23% and an average ROAE of 12.77% for the last 43 years, including throughout the duration of the last financial crisis ROAA ROAE 1.80% 20.00% 1.60% 18.00% 16.00% 1.40% LCNB 43-Yr. Avg.: 1.23% 14.00% LCNB 43-Yr
Slide 11: Deposits and Loans
– LCNB Investment Highlights Deposits and Loans Deposit Composition at 6/30/18 Loan Breakdown at 6/30/18 Construction 3.6% Other Time > $100k HELOC 0.1% 10.3% 3.3% Other Farm Consumer 4.7% 1.5% C&I Time < $100k 7.1% 1-4 Family 11.6% 26.1% Transaction 49.9% MMDA + Savings 28.2% Multifamily + CRE 53.8
Slide 12: NCOs/Average Loans
LCNB Investment Highlights NCOs/Average Loans LCNB has achieved consistently strong profitability without reaching for growth or compromising its credit standards. On the contrary, LCNB’s intimate knowledge of its communities and its customers has resulted in minimal credit losses throughout and sin
Slide 13: Stable Common Dividends
– LCNB Investment Highlights Stable Common Dividends LCNB has never decreased or suspended its dividend – Since beginning dividend payments in 1998, LCNB has consistently maintained or increased its quarterly dividend LCNB shares currently yield 3.37% versus an average 1.59% for publicly traded,
Slide 14: Dividend Payout Ratio
LCNB Investment Highlights Dividend Payout Ratio In eight of the last 10 years and over the last 12 months, LCNB has returned half or more of its net income to shareholders through dividends. Unlike many banks during the 2008 – 2011 period, LCNB never reduced its dividend and maintains a strong divi
Slide 15: Liquidity
LCNB Investment Highlights Liquidity 45,000 40,000 35,000 30,000 25,000 20,000 Three Month ADTV 16,724 15,000 10,000 5,000 0 LCNB Three Month ADTV Three Month ADTV Source: S&P Global Market Intelligence, Company documents as of 8/6/18 14
Slide 16: Ownership Profile
LCNB Investment Highlights Ownership Profile Stakeholder/Insider Ownership Information Top 20 - Institutional Ownership Information Holder % Owned Holder % Owned LCNB National Bank 4.73 LCNB Corp. 4.72 John H. Kochensparger III 1.11 Kennedy Capital Management Inc. 3.82 William Huddle 1.07 BlackRock
Slide 17: Ten Year Total Return (%)
LCNB Investment Highlights Ten Year Total Return (%) 350.00 300.00 250.00 214.16% 200.00 150.00 100.00 50.00 17.06% 0.00 -50.00 -100.00 Aug-08 Jun-09 Apr-10 Feb-11 Dec-11 Oct-12 Aug-13 Jun-14 Apr-15 Feb-16 Dec-16 Oct-17 LCNB SNL U.S. Bank & Thrift Source: S&P Global Market Intelligence as of 8/6/18
Slide 18: Attractive Relative Valuation
– LCNB Investment Highlights Attractive Relative Valuation Selected Peer Midwest Bank Comparison (Sorted by Assets) Banks and thrifts headquartered in Ohio, Kentucky and Indiana with assets $1 billion - $3 billion and TCE/TA > 8%, excluding merger targets Financials as of: 6/30/2018 Operating Inform