Slide 1: Investor Summary Q2, 2021
1 Investor Summary Q2, 2021 NASDAQ: LCNB
Slide 2: Forward Looking
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: LCNB Overview
(1) At July 30, 2021 (2) At June 30, 2021 $1.86 billion in assets, $3.08 billion in total assets managed, and $1.58 billion in deposits(2) $212.8 Million Market Cap(1) 32 branches in Southwestern and Central Ohio 1.2x Price to Tangible Book(1) Completed 4 successful acquisitions since 2013 11.79% YT
Slide 4: Experienced Bankers Dedicated to Creating Value
Experienced Bankers Dedicated to Creating Value We have assembled an experienced management team with an average of 30 years of banking experience as well as unique experience successfully identifying, completing, and integrating acquisitions. We are focused on developing and training our employees,
Slide 5: Creating Value for Shareholders
Creating Value for Shareholders DIVIDEND HIGHLIGHTS LCNB has never decreased or suspended its dividend 2020 fourth quarter cash dividend increased 5.6% over the prior year period and represents the third consecutive annual increase Dividend payout range policy of 45% - 55% of earnings From 2017 to 2
Slide 6: Strong Position in Compelling Markets
Strong Position in Compelling Markets Market Branches 2020 Rank1 Deposits ($000)1 % of Franchise Cincinnati 19 13 $808,008 56% Dayton 3 11 $157,149 11% Columbus 1 20 $148,033 10% Preble County 3 1 $151,111 11% Ross County 4 4 $132,720 9% Clinton County 1 8 $28,074 2% Fayette County 1 7 $14,549 1% To
Slide 7: Caring for our Communities
Caring for our Communities We have developed a long tradition and respected reputation for building strong relationships with our investors, associates, customers and in the communities that we support and do business. Across our organization, our associates are involved with organizations throughou
Slide 8: COVID-19 Response & Support
IMPROVING DEFERRAL TRENDS $384.3 $10.4 6/30/2020 6/30/2021 582 2 6/30/2020 6/30/2021 Dollar Balance (in millions) Number of Loans OVERVIEW • Focused on supporting customers, employees, and communities • Offered all customers impacted by the COVID-19 crisis the ability to defer loan payments • Provid
Slide 9: Balanced Growth
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 Profitabil
Slide 10: Strong Financial Performance Supported by Diverse Revenue Sources
Strong Financial Performance Supported by Diverse Revenue Sources (at June 30, 2021) Trust Services Business Banking InvestmentsPersonal Banking LTM SOURCES OF INCOME (in thousands) LTM NONINTEREST INCOME Net Interest Income, $56,783 Noninterest Income, $16,362 Fiduciary Income 36% Service charges &
Slide 11: Wealth Management Strategy
Wealth Management Strategy With a record of $1.0 billion in assets under management, at June 30, 2021, LCNB Wealth Management provides sophisticated wealth management solutions with the personal service LCNB’s customers expect. Portfolio management is tailored to the specific circumstances of the cu
Slide 12: M&A Strategy
M&A Strategy Since 2013, we have completed 4 successful acquisitions of high-quality community banks that have added scale, expanded our markets, and generated attractive returns. There are over 70 banks within Ohio, Indiana, and Kentucky that we have identified as potential acquisition candidates.
Slide 13: 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 14: Low-Cost Deposit Base
Low-Cost Deposit Base OVERVIEW DEPOSIT TRENDS (in millions) CORE DEPOSITS TO TOTAL DEPOSITSDEPOSIT COMPOSITION (in millions) $- $500 $1,000 $1,500 $2,000 6/30/2020 6/30/2021 Noninterest-bearing Interest-bearing • Prudent management of deposit base • Off balance sheet insured cash sweep program • Tot
Slide 15: Loan Trends
Loan Trends 7.4% 63.4% 25.9% 2.7% 0.7% Commercial and industrial Commercial real estate Residential real estate Consumer Agricultural Other • Strong, local, and individual lending culture • Products include commercial and industrial loans, commercial and residential real estate loans, agricultural l
Slide 16: Legacy of Strong Asset Quality
Legacy of Strong Asset Quality NPLs / TOTAL LOANS ($ in thousands) Q2 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% $- $1,000 $2,000 $3,000 $4,000 $5,000 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 NPLs NPLs / Total
Slide 17: History of Strong Earnings Growth
History of Strong Earnings Growth NET INTEREST INCOME After Provision for Loan Losses, Annually PRE-TAX, PRE-PROVISION INCOME Annually $- $5,000 $10,000 $15,000 $20,000 $25,000 2015 2016 2017 2018 2019 2020 ANNUAL NET INCOME Increased at an 11.8% CAGR • 2020 EPS increased 7.6% to $1.55 per diluted s
Slide 18: Liquidity & Capital
OVERVIEW (at June 30, 2021) AVERAGE EQUITY TO ASSET RATIO AVERAGE LOANS TO DEPOSITSTCE/TCA • Total risk-based capital exceeds well-capitalized threshold • Loan growth funded through core deposits • Significant availability from FHLB • $55.0 million of additional liquidity available through line of c
Slide 19: Summary
Summary • Growth-oriented community bank dedicated to creating value • Business model focused on providing diverse, and community- oriented financial services • Strong position within three large, compelling, and distinct Ohio markets • Experienced and motivated management team • Proven acquisition
Slide 20: Appendix
20 Appendix Historical Annual Financials Historical Quarterly Financials
Slide 21: Historical Annual Financials
Dollars in thousands 2016 2017 2018 2019 2020 Net interest income 40,246 40,864 48,169 54,406 56,218 Provision for loan losses 913 215 923 207 2,014 Noninterest income 10,853 10,458 11,050 12,348 15,741 Noninterest expense 33,261 33,863 40,502 43,522 45,785 Income before income taxes 16,925 17,244 1
Slide 22: Quarterly Financials
Quarterly Financials Dollars in thousands Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Net interest income 13,998 13,529 14,513 14,372 14,369 Provision for loan losses 16 976 (151) (52) (15) Noninterest income 3,319 4,278 4,305 3,465 4,314 Noninterest expense 11,116 11,653 11,944 11,492 12,208 Income bef
Slide 23: lcnbcorp.com LCNB National Bank
23 lcnbcorp.com NASDAQ: LCNB LCNB National Bank | lcnb.com 2 N. Broadway Lebanon, OH 45036 Member FDIC | Equal Housing Lender #furthertogether