Lcnb Corporation · NASDAQ:LCNB
Lcnb — Investor Presentation (March 2022)
32 slides from Lcnb's investor presentation, Mar 22, 2022
Slide 1: Investor Summary Q4, 2021
1 Investor Summary Q4, 2021 NASDAQ: LCNB
Slide 2: Forward Looking Statements
Forward Looking 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 relate to
Slide 3: About LCNB
About LCNB LCNB Operations Center, Lebanon OH
Slide 4: LCNB Overview
(1) At February 28, 2022 (2) At December 31, 2021 $1.90 billion in assets, $3.14 billion in total assets managed, and $1.63 billion in deposits(2) $207.3 Million Market Cap(1) 31 branches in Southwestern and Central Ohio 1.3x Price to Tangible Book(1) Completed 4 successful acquisitions since 2013 1
Slide 5: Strong Position in Compelling Markets
Strong Position in Compelling Markets Market Branches 2021 Rank1 Deposits ($000)1 % of Franchise Cincinnati 18 12 $932,842 59% Preble County 3 1 $170,665 11% Dayton2 3 22 $160,561 10% Ross County 4 4 $150,994 10% Columbus 1 38 $113,062 7% Clinton County 1 9 $32,699 2% Fayette County 1 7 $16,896 1% T
Slide 6: Caring for our Communities
We have developed a long tradition and respected reputation for building strong relationships with our investors, associates, and customers in the communities that we support and do business. We believe that this will not only help our communities but will help our market share. Across our organizat
Slide 7: Balanced Growth and Business Model Components
Balanced Growth Focusing on profitable growth, without compromising credit standards. Diverse Revenues Multiple sources of revenue insulate LCNB from challenging interest rate environment. Consistent Performance Tangible book value has increased at a 5.7% CAGR over the past 5 years. Focus on Profita
Slide 8: LCNB Financial and Operating Highlights
LCNB Financial and Operating Highlights LCNB Union Village Opening, Lebanon OH
Slide 9: Full Year 2021 Financial Highlights
L C N B C O R P . | Q 4 , 2 0 2 1 I N V E S T O R S U M M A R Y P A G E 9 Full Year 2021 Financial Highlights LCNB ended 2021 with record total assets and Wealth Management assets, which combined with strong asset quality helped drive record annual net income and earnings per share. $1,745,884 $1,90
Slide 10: Capital Allocation Highlights
L C N B C O R P . | Q 4 , 2 0 2 1 I N V E S T O R S U M M A R Y P A G E 1 0 Capital Allocation Highlights • Returned a record amount of capital to shareholders in 2021 through the Company’s stock repurchase program and regular cash dividend program • In February 2022, LCNB Corp. repurchased 1,051,68
Slide 11: Focused on Key Strategies to Drive Continued Growth
L C N B C O R P . | Q 4 , 2 0 2 1 I N V E S T O R S U M M A R Y P A G E 1 1 Focused on Key Strategies to Drive Continued Growth and Value Creation in 2022 and Beyond PRUDENTLY CONTROL RISK MANAGE OPERATING EXPENSESDIVERSIFY REVENUE GROW CUSTOMER RELATIONSHIPS
Slide 12: Diverse Financial Services Support High Noninterest Income
Diverse Financial Services Support a High Level of Noninterest Income (at December 31, 2021) Trust Services Business Banking InvestmentsPersonal Banking 2021 SOURCES OF INCOME 2021 NONINTEREST INCOME Net Interest Income, 78% Noninterest Income, 22% Fiduciary Income 41% Service charges & fees 37% Ban
Slide 13: Expanding Relationships Through Wealth Management Growth
Expanding Relationships Through Wealth Management Growth We believe that most of our community bank competitors do not have our wealth management capabilities, and some of our large bank competitors fall short of our level of customer service. As such, we believe that we are poised to achieve furthe
Slide 14: Disciplined Acquisition Strategy Further Enhances Growth
Disciplined Acquisition Strategy Further Enhances Growth “We have assembled a highly motivated and skilled management team that includes experience successfully identifying, completing, and integrating acquisitions. Since 2013, we have made four successful acquisitions of high- quality community ban
Slide 15: Digital Trends and Strategy
Digital Trends and Strategy Investing in Secure Digital and Mobile Platforms Focused on expanding digital marketing efforts and reach, while optimizing physical branch presence Refreshed entire ATM network and ITM upgrades available New online platform supports digital account opening and lending ap
Slide 16: Compelling Low-Cost Deposit Base
Compelling Low-Cost Deposit Base OVERVIEW DEPOSIT TRENDS (in thousands) CORE DEPOSITS TO TOTAL DEPOSITSDEPOSIT COMPOSITION (in thousands) $- $500,000 $1,000,000 $1,500,000 $2,000,000 12/31/2020 12/31/2021 Noninterest-bearing Interest-bearing • Prudent management of local and stable deposit base • Of
Slide 17: Strong, Local, and Individual Lending Culture Supports Loan Growth
Strong, Local, and Individual Lending Culture Supports Loan Growth 7.4% 64.9% 24.4% 2.5% 0.8% Commercial and industrial Commercial real estate Residential real estate Consumer Agricultural Other • Products include commercial and industrial loans, commercial and residential real estate loans, agricul
Slide 18: Legacy of Excellent Asset Quality
Legacy of Excellent Asset Quality NPLs / TOTAL LOANS (in thousands) Q4 2021 CRE Breakdown Top CRE Categories (includes non-owner occupied and owner occupied) 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% 0.35% $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 20
Slide 19: History of Disciplined Management and Strong Earnings Growth
History of Disciplined Management and Strong Earnings Growth (charts in thousands, except per-share data) NET INTEREST INCOME After Provision for Loan Losses, Annually ANNUAL DILUTED EPS $- $5,000 $10,000 $15,000 $20,000 $25,000 2016 2017 2018 2019 2020 2021 ANNUAL NET INCOME Increased at an 11.8% C
Slide 20: Capital Levels Support Strategic and Organic Growth Objectives
OVERVIEW (at December 31, 2021) TANGIBLE BOOK VALUE PER SHARE AVERAGE LOANS TO DEPOSITSTCE/TCA • Total risk-based capital exceeds well-capitalized threshold • Loan growth funded through core deposits • Significant availability from FHLB • Additional liquidity available through line of credit agreeme
Slide 21: LCNB Corporate Governance
LCNB Corporate Governance LCNB Main Office, Lebanon OH
Slide 22: Experienced Bankers Dedicated to Creating Value
Experienced Bankers Dedicated to Creating Value “While remaining rooted in the communities we serve, we have driven diversity and independence on the Board. We believe the progress we are making in refreshing the Board supports our growth strategies and reflects the demographic makeup of the communi
Slide 23: Creating Value for Shareholders
Creating Value for Shareholders DIVIDEND HIGHLIGHTS LCNB has never decreased or suspended its dividend 2021 fourth quarter cash dividend increased 5.3% over the prior year period and represents the fourth consecutive annual increase At February 28, 2022, LCNB’s dividend yield was 4.4% From 2018 to 2
Slide 24: Accomplished and Well-Versed Board of Directors
L C N B C O R P . | Q 4 , 2 0 2 1 I N V E S T O R S U M M A R Y P A G E 2 4 Accomplished and Well-Versed Board of Directors Name & Principal Occupation Age Director Since Independent Signficant Shareholder Banking Sector Corporate Finance Board Wealth Management Mary E. Bradford Former IT Executive,
Slide 25: Recent Board Appointments Bring Relevant Skills & Experience
Michael J. Johrendt Director Since 2018 Craig M. Johnson Director Since 2019 William G. Huddle Director Since 2018 Mary E. Bradford Director Since 2018 Recent Board Appointments Bring Relevant Skills & Experience L C N B C O R P . | Q 4 , 2 0 2 1 I N V E S T O R S U M M A R Y P A G E 2 5 DIRECTORS A
Slide 26: Ongoing Commitment to Strong Corporate Governance
Ongoing Commitment to Strong Corporate Governance L C N B C O R P . | Q 4 , 2 0 2 1 I N V E S T O R S U M M A R Y P A G E 2 6 FEBRUARY 2022 Mary E. Bradford 2018 Spencer S. Cropper 2006 Steve P. Foster 2005 William G. Huddle 2018 Craig M. Johnson 2019 Michael J. Johrendt 2018 William H. Kaufman 1982
Slide 27: Seasoned Management Team
L C N B C O R P . | Q 4 , 2 0 2 1 I N V E S T O R S U M M A R Y P A G E 2 7 Seasoned Management Team Eric J. Meilstrup President & Chief Executive Officer Mr. Meilstrup has served in a variety of executive, operational, customer service, and HR roles throughout his 30+ year tenure at LCNB. He is als
Slide 28: Investment Highlights
• Growth-oriented community bank dedicated to creating significant long-term shareholder value • Business model focused on providing diverse financial services and an above-average level of fee income • Strong, competitive position within three large, compelling, and distinct Ohio markets offering s
Slide 29: Appendix
29 Appendix Historical Annual Financials Historical Quarterly Financials
Slide 30: Historical Annual Financials
Dollars in thousands 2017 2018 2019 2020 2021 Net interest income 40,864 48,169 54,406 56,218 57,124 Provision (credit) for loan losses 215 923 207 2,014 (269) Noninterest income 10,458 11,050 12,348 15,741 16,232 Noninterest expense 33,863 40,502 43,522 45,785 48,040 Income before income taxes 17,2
Slide 31: Quarterly Financials
Quarterly Financials Dollars in thousands Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Net interest income 14,513 14,372 14,369 14,073 14,310 Provision (credit) for loan losses (151) (52) (15) 306 (508) Noninterest income 4,305 3,465 4,314 4,106 4,347 Noninterest expense 11,944 11,492 12,208 12,029 12,31
Slide 32: LCNB National Bank contact
32 lcnbcorp.com NASDAQ: LCNB LCNB National Bank | lcnb.com 2 N. Broadway Lebanon, OH 45036 Member FDIC | Equal Housing Lender #furthertogether