Slide 1: Investor Presentation Second Quarter 2024
LCNB Operations Center, Lebanon OH Investor Presentation Second Quarter 2024 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 Corp. | Q2, 2024 Investor Presentation
Slide 4: Successfully Serving Our Communities for over 145 Years
Successfully Serving Our Communities for over 145 Years LCNB has grown to become one of the largest community banks in Ohio 1877 Founding 1878 - 1976 Economic Growth in Warren County 1977 - 2007 Branch Expansion & Organic Growth 2008 - 2012 Managing the Great Financial Crisis & Recovery 2020 - 2023
Slide 5: Compelling Community Banking Presence
Compelling Community Banking Presence Operating in robust and growing Ohio markets Cincinnati Counties Dayton Counties Columbus Counties Micropolitan Counties Market Highlights • Market includes 16 counties in OH, KY and IN • MSA is the 30th largest in the U.S. • Population: 2.2 million • Fastest gr
Slide 6: Growing Southwest Ohio Market Presence
Quarterly Financials Growing Southwest Ohio Market Presence LCNB is now the 8th largest bank based on deposits in the Cincinnati MSA • Cincinnati Bancorp, Inc. acquisition completed on November 1, 2023 • Eagle Financial Bancorp, Inc. acquisition completed on April 12, 2024 • Quickly completed data p
Slide 7: Where Does LCNB Stand Today?
Compelling Scale One of the largest community banks in Ohio with $2.4 billion in total assets, and over 70,000 Personal, Business and Wealth customers Excellent Asset Quality Proven asset quality throughout multiple cycles, including the Great Financial Crisis and the global COVID-19 pandemic Where
Slide 8: Corporate Purpose: Go Further Together
Corporate Purpose: Go Further Together Committed to serving all stakeholders Customers & Communities Teammates Shareholders Every product and service is crafted to make a difference for our customers Personal, commercial, and wealth management solutions to fit every customer’s unique needs LCNB’s CR
Slide 9: Strategic Transformation
Strategic Transformation LCNB Corp. | Q2, 2024 Investor Presentation
Slide 10: Growth Oriented Strategic Plan
Growth Oriented Strategic Plan Strategic plan focused on producing strong and consistent performance Balance Growth Focusing on profitable growth without compromising credit standards Return Capital to Shareholders Longstanding dividend policy and share repurchase program Diversify Revenues Multiple
Slide 11: Diverse Financial Services
Diverse Financial Services Personal and Business Banking Services, combined with Wealth Management, deliver high levels of noninterest income $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 TTM 2013 – 2023 Growth Growing r
Slide 12: Expanding Wealth Management Opportunities
$571,300 $1,199,160 $1,317,392 2018 2023 Q2 2024 2018-2023 CAGR Growth: 16.0% $3,958 $7,091 $7,604 2018 2023 TTM 2018-2023 CAGR Growth: 12.4% Wealth Management Assets (in thousands) Fiduciary Income (in thousands) Expanding Wealth Management Opportunities LCNB is well positioned to grow its wealth m
Slide 13: Digital Trends and Strategy
LCNB’s established digital strategy further extends the Company’s robust digital and mobile platforms compared to other community banks Digital Trends and Strategy Investing in Secure Digital and Mobile PlatformsDigital Transactions: Up 15.5% Year-over-Year 28,000 29,000 30,000 31,000 32,000 33,000
Slide 14: Responsive, Local and Leading Service
Digital Trends and Strategy Dedicated to Providing Responsive, Local and Leading Service Continual investments to drive productivity, while maintaining a superior level of service The Value of a Local and Responsive Bank “Our business is like an airline. It’s expensive whether we’re busy or not, and
Slide 15: Successful Strategic Transformation
$- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q2 2024 Brokerage Accounts Cash Management Mortgage Loans Serviced Wealth LCNB Corp. Assets Successful Strategic Transformation From 2013 to 2023
Slide 16: Financial and Operating Highlights
Financial and Operating Highlights LCNB Corp. | Q2, 2024 Investor Presentation
Slide 17: Total Assets, Loans and Nonperforming Assets
Total Assets ($ in billions) $1.95 $2.37 Q2 2023 Q2 2024 • Total assets reached a record of $2.37 billion • Loans, net increased 20.9% year-over-year to $1.73 billion, compared to $1.43 billion at June 30, 2023, primarily from the contribution of organic loan growth and the completion of the Cincinn
Slide 18: Capital Allocation: Repurchases and Dividends
Cumulative Shares Repurchased (in thousands) • From 2020 – 2023, LCNB has repurchased 2,036,356 shares of its outstanding common stock • At June 30, 2024, LCNB had 315,047 shares remaining under its February 2023 share repurchase program Cash Dividend (*2024 annualized) $0.73 $0.77 $0.81 $0.85 $0.88
Slide 19: Robust Capital Levels
Robust Capital Levels Supports strategic and organic growth objectives Average Loans to Deposits 84.8% 83.5% 89.5% 92.5% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% 2021 2022 2023 Q2 2024 • With the addition of Cincinnati Federal, LCNB had over 70,000 consumer, public fund, small business and non-profit ch
Slide 20: Deposit Performance
• Off balance sheet insured cash sweep program • Total deposits increased 21.7% year-over-year to $1.94 billion, and increased 6.8% organically • Noninterest-bearing stood at 23.1% of total deposits • Cost of interest-bearing demand and money market deposits were 2.22% • LCNB’s core deposits as a pe
Slide 21: Lending Overview
7.2% 64.4% 26.4% 1.3% 0.7% Commercial and industrial Commercial real estate Residential real estate Consumer Agricultural Other • Products include commercial and industrial loans, commercial and residential real estate loans, agricultural loans, construction loans, various types of consumer loans, a
Slide 22: Commercial Secured by Real Estate Breakdown
Q2 2024 Commercial Secured by Real Estate Breakdown Top CRE Categories (includes non-owner occupied and owner occupied) 47% 20% 3% 20% 10% Non-Owner Occupied Owner Occupied Farmland Multi-Family Secured Construction Loans Category Balance % of CRE Portfolio Multi-Family $277.0 mil. 27% Retail $167.2
Slide 23: Asset Quality
0.14% 0.19% 0.44% 0.39% 0.18% 0.08% 0.21% 0.18% 0.06% 0.05% 0.03% 0.02% 0.03% 0.00% 0.01%0.01% 0.00% 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q2 2024 Net Charge-Offs to Average Loans • Proven asset quality throughout multiple
Slide 24: Focused on Maintaining Strong Profitability
Net Interest Income After Provision for Credit Losses, Annually Annual Diluted EPS $- $5,000 $10,000 $15,000 $20,000 $25,000 2018 2019 2020 2021 2022 2023 Annual Net Income • 2023 profitability impacted primarily by one-time acquisition related operating and provision expenses and higher interest ex
Slide 25: Recent Tangible Book Value Drivers
Recent Tangible Book Value Drivers L C N B C O R P . | Q 2 , 2 0 2 4 I N V E S T O R S U M M A R Y 2 5P A G E $11.64 $11.14 $14.33 12/31/17 6/30/18 12/31/21 • One-time acquisition costs and 3,253,060 shares associated with the acquisition reduced tangible book value per share by $0.50, or by 4.3% •
Slide 26: Corporate Governance
Corporate Governance LCNB Corp. | Q2, 2024 Investor Presentation
Slide 27: Longstanding and Growing Dividend
DIVIDEND HIGHLIGHTS 2024 second quarter cash dividend increased 4.8% over the prior year period At June 30, 2024, LCNB’s dividend yield was 6.3% $- $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 $0.90 $1.00 From 2018 to 2023, LCNB’s annual dividend has increased at a 5.5% CAGR Longstanding and Grow
Slide 28: Accomplished and well-versed Board of Directors
Name & Principal Occupation Age Director Since Independent Significant Shareholder Banking Sector Corporate Finance Wealth Management Bob Bedinghaus Former CEO of Cincinnati Bancorp Mary E. Bradford Former IT Executive, GE Aviation 67 2018 Spencer S. Cropper, Chairman CPA for Stolle Properties, Inc
Slide 29: Management Team
Robert C. Haines II EVP, Chief Financial Officer Mr. Haines has been the CFO of LCNB for 14 years, after serving in a variety of finance, IT, and operational positions during his nearly 30-year tenure at LCNB. Bradley A. Ruppert EVP, Chief Investment Officer Mr. Ruppert joined LCNB in 2008 and has 2
Slide 30: Balancing Customer Needs with Prudent Risk Management
Balancing Customer Needs with Prudent Risk Management “When you get a commitment from bankers and they don’t ask any questions, that’s a red flag. You don’t want to partner with a bank that doesn’t understand the risk. LCNB goes the extra mile to do their due diligence.” (full testimonial) Jon Black
Slide 31: Appendix
Appendix LCNB Corp. | Q2, 2024 Investor Presentation
Slide 32: Annual Financials
Dollars in thousands (except per share data) 2019 2020 2021 2022 2023 Net interest income 54,406 56,218 57,124 61,042 56,349 Provision for (recovery of) credit losses 207 2,014 (269) 250 2,077 Noninterest income 12,348 15,741 16,232 14,288 15,411 Noninterest expense 43,522 45,785 48,040 48,134 54,42
Slide 33: Quarterly Financials
Quarterly Financials Quarterly Financials Dollars in thousands (except per share data) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Net interest income 14,177 13,571 14,659 13,895 15,217 Provision for (recovery of) for credit losses 30 (114) 2,218 125 528 Noninterest income 3,646 3,578 4,606 3,929 4,080
Slide 34: Reconciliation of Net Income Less Tax-Effected Merger-Related Costs
Quarterly Financials Reconciliation of Net Income Less Tax-Effected Merger-Related Costs Three Months Ended Dollars in thousands (except per share data) 6-30-2023 9-30-2023 12-31-2023 3-31-2024 6-30-2024 Net income 4,694 4,070 (293) 1,915 925 Merger expense add back 415 302 3,914 775 2,320 Provision
Slide 35: LCNB National Bank contact details
35 lcnbcorp.com NASDAQ: LCNB LCNB National Bank | 2 N. Broadway, Lebanon, OH 45036 lcnb.com | shareholderrelations@lcnb.com Member FDIC | Equal Housing Lender #furthertogether