Lcnb Corporation · NASDAQ:LCNB
Lcnb — Investor Presentation (August 2017)
18 slides from Lcnb's investor presentation, Aug 9, 2017
Slide 1: LCNB Investment Highlights August 2017
LCNB Investment Highlights August 2017
Slide 2: Forward-Looking Statements
Forward-Looking Statements 1 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 statemen
Slide 3: Forward-Looking Statements
Forward-Looking Statements 2 · 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 shar
Slide 4: Overview
High and consistent profitability driven by disciplined organic loan growth, diversified revenue base, and low-cost, core deposits – 37 of the last 40 years with 1% or above ROAA1 Consistently stable dividends (current yield of 3.18%) Strong asset quality and capital ratios driven by conservat
Slide 5: Recent Events
LCNB Investment Highlights – Recent Events 4 Highlights of 2Q 2017 Acquisition of BNB Bancorp, Inc. Closed acquisition of BNB Bancorp in April 2015 – Added approximately $111 million in assets, $35 million in loans, $99 million in deposits and two branches – Purchase price of $13.5 million, equal
Slide 6: The Franchise
$1.3 billion in assets and $1.1 billion in deposits headquartered in Lebanon, Ohio (Warren County) 35 branches in southwestern Ohio, primarily in and around the attractive Cincinnati MSA 10th largest bank in the Cincinnati MSA by deposits – Warren County, inside Cincinnati MSA, is the third fa
Slide 7: Management Team
LCNB Investment Highlights – Management Team 6 Experienced management team with an average of 32 years of banking experience and many executives have worked together for over 20 years Name Years of Banking Experience Title Background Stephen P. Wilson 42 Chairman Joined LCNB in 1975 and LCNB Board
Slide 8: Financial Performance
LCNB Investment Highlights – Financial Performance 7Source: SNL Financial, Company documents LCNB Corp. Calendar Year Ended LTM Quarter Ended LCNB 2012 2013 2014 2015 2016 6/30/17 9/30/16 12/31/16 3/31/17 6/30/17 Total Assets 788,637 932,338 1,108,066 1,280,531 1,306,799 1,335,571 1,333,536 1,306,79
Slide 9: ROATCE
LCNB Investment Highlights – ROATCE 8Source: SNL Financial; Peers defined as public banks and thrifts with assets $500M - $5B; LTM as of 6/30/17 LCNB has consistently delivered solid operating performance and profitability regardless of economic climate, as demonstrated in the chart below. LCNB has
Slide 10: Consistent Profitability
0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% 1.80% LCNB has had an average ROAA of 1.23% and an average ROAE of 12.89% for the last 42 years, including the duration of the last financial crisis LCNB Investment Highlig
Slide 11: Deposits and Loans
LCNB Investment Highlights – Deposits and Loans 10 Deposit Composition at 6/30/17 Loan Breakdown at 6/30/17 YTD Cost of Deposits: 0.30% YTD Yield on Loans: 4.37% Source: SNL Financial Note: Regulatory filings capture some transaction accounts as MMDA Transaction 10.2% MMDA + Savings 71.6% Time < $10
Slide 12: NCOs / Avg. Loans
LCNB Investment Highlights – NCOs / Avg. Loans 11Source: SNL Financial; Peers defined as public banks and thrifts with assets $500M - $5B; LTM as of 6/30/17 LCNB has achieved consistently strong profitability without reaching for growth or compromising its credit standards. On the contrary, LCNB’s i
Slide 13: Stable Common Dividends
LCNB Investment Highlights – Stable Common Dividends 12 LCNB Common Dividend Payments Per Share 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 3.19% v
Slide 14: Dividend Payout Ratio
LCNB Investment Highlights – Dividend Payout Ratio 13Source: SNL Financial; Peers defined as public banks and thrifts with assets $500M - $5B; LTM as of 6/30/17 In nine of the last 10 years, and over the last 12 months, LCNB has returned half or more of its net income to shareholders through dividen
Slide 15: Ownership Profile
LCNB Investment Highlights – Ownership Profile 14Source: SNL Financial, Company documents as of 8/1/17 Stakeholder/Insider Ownership Information Top 20 - Institutional Ownership Information Holder % Owned Options Holder % Owned LCNB National Bank 7.29 0 FMR LLC 7.51 John H. Kochensparger III 1.48 0
Slide 16: Liquidity
LCNB Investment Highlights – Liquidity 15 Liquidity Source: SNL Financial, Company documents as of 8/1/17 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 LCNB Three Month ADTV 13,735 0 2,000 4,000 6,000 8,00
Slide 17: 10-Year Total Return
LCNB Investment Highlights – 10-Year Total Return 16Source: SNL Financial as of 8/1/17 129.6% 17.0% -100.0 -50.0 0.0 50.0 100.0 150.0 200.0 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 Ten Year Total Return (%) LCNB SNL U.S. Bank and Thrift
Slide 18: Attractive Relative Valuation
LCNB Investment Highlights – Attractive Relative Valuation 17 Selected Peer Midwest Bank Comparison (Sorted by Market Capitalization) Source: SNL Financial; LTM as of 6/30/17, pricing data as of 8/1/17 *Calculated as of 3/31/17 Metric PRK FFBC FRME PEBO FDEF UCFC LCNB LTM ROAA (%) 1.15 1.11 1.26 0.9