Lcnb Corporation · NASDAQ:LCNB
Lcnb — Non-Deal Roadshow (June 2014)
23 slides from Lcnb's roadshow presentation, Jun 3, 2014
Slide 1: Non-Deal Roadshow Presentation June 6, 2014
Non-Deal Roadshow Presentation June 6, 2014
Slide 2: Forward-Looking Statements
li i i d h l i f i i i d i i Forward-Looking Statements This presentation as well as other written or oral communications made from time to time by us, may contain certain forward-looking information within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 193
Slide 3: Forward-Looking Statements (continued)
expected 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 mark
Slide 4: Executive Summary
Executive Summary
Slide 5: LCNB Investment Highlights
C i t tl t bl di id d T 6 ti h f 32 f i LCNB Investment Highlights 135 year-old community bank located in attractive markets in southwestern Ohio with good demographics, stable home prices, and sound economic activity Stable & Attractive Markets High and consistent profitability driven by discipli
Slide 6: Highlights of 1Q 2014
Highlights of 1Q 2014 Acquisition of Eaton National Bank and Trust Co. Add d i t l $183 illi i t $124 illi i l $134 illi i d it d 5 b h Common Equity Raise C it i d t h i f $17 50 14% i t LCNB’ t t di i f Recent Events LCNB reported quarterly core EPS of $0.24. Core net income increased from $2.1
Slide 7: Franchise Overview
Franchise Overview
Slide 8: The LCNB Franchise
LCNB Branch Map LCNB Deposits in Top Three Markets Major business lines include: : 1 14 release The LCNB Franchise $1,134 million in assets and $985 million in deposits headquartered in Lebanon, OH, in Warren County 36 branches in southwestern Ohio, primarily in and around the Cincinnati MSA 1
Slide 9: Cincinnati Represents a Vibrant, Attractive Market...
Unemployment Rate Median Household Income $0 2013-2018 Projected Population Change Cincinnati Represents a Vibrant, Attractive Market... Cincinnati’s unemployment rate of 5.8% was below both the national average of 6.7% and Ohio’s at 6.1% in March Apart from the15 Fortune 1000 companies headquar
Slide 10: ...With Strong Economic Fundamentals
Average Weekly Earnings ($) Median Home Price ($000s) 125 0 ...With Strong Economic Fundamentals The median home price has risen to near pre-crisis levels, increasing household wealth and reflecting a stabilizing economy Average earnings of Cincinnati workers have shown strong growth and are now
Slide 11: LCNB Has Had Consistently High Profitability
LCNB Has Had Consistently High Profitability LCNB has had ROAA at or above 1.0% and ROAE at or above 10.0% for 37 of the last 38 years, including the duration of the last financial crisis 1.80 20.0 18.0 1.60 16.0 1.40 14.0 1.20 12.0 1.00 85% Higher 73% Higher 10.0 0.80 8.0 0.60 6.0 0.40 4.0 0.20 2
Slide 12: Stable Common Dividends
$0 50 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 4.2% versus 1.9% for publicly traded, U.S. banks 1 $0.70 $0.62 $0.60 $0.5
Slide 13: Seasoned Management Team
Secondary Market Head of Real Estate Lending and Chief Lending Seasoned Management Team Experienced management team with an average of 32 years of banking experience and many executives have worked together for over 20 years 12 Name Title Experience Background Stephen P. Wilson Chairman & CEO 38 J
Slide 14: Case Study: Leveraging the Platform Through Acquisitions
$8 0 Case Study: Leveraging the Platform Through Acquisitions Acquisition of Eaton National (completed January 24, 2014) added approximately $183 million in assets, $124 million in loans and $134 million in deposits Acquisition of First Capital (completed January 11, 2013) added approximately $1
Slide 15: Strong, Low-Cost Deposit Base Funding Diversified Loan Portfolio
19 9% Strong, Low-Cost Deposit Base Funding Diversified Loan Portfolio Consumer, 3.1% Agricultural, 5.7% Other, 0.2% CDs Less Than $100k, 15.5% Transaction Accounts, 29.5% Jumbo CDs, 8.3% CRE - Non- Owner- 1-4 Family, 34.8% Occupied, 23.6% Savings & Money Mkt, 26.9% Demand Deposits, . C&I, 5.7% Mult
Slide 16: Strong Asset Quality Across All Cycles
( Strong Asset Quality Across All Cycles 3.00 2.50 2.00 Publicly Traded Ohio Banks: 1.56 1.50 Publicly Traded U.S. Banks: 1.32 1.00 0.63 0.50 0.00 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 1Q14 Source: SNL Financial, Company documents. 15 N P A s /A s s e ts (%
Slide 17: Current Markets Present Further Consolidation Opportunities
DC - Update Current Markets Present Further Consolidation Opportunities Southwestern Ohio market has 29 institutions with assets between $200 million and $800 million1 – Many targets too small to have meaningful interest from larger banks – Lower-risk transactions into known markets driven primari
Slide 18: LCNB Investment Highlights
LCNB Investment Highlights Established community bank located in attractive markets in southwestern Ohio with good demographics, stable home prices, and sound economic activity High and consistent profitability with 37 out of last 38 years with 1% or above ROAA across different economic cycles
Slide 19: Appendix
Appendix
Slide 20: Financial Highlights
Financial Highlights Source: SNL Financial. 19 Year Ended 12/31/2010 12/31/2011 12/31/2012 12/31/2013 YTD 3/31/2014 Balance Sheet ($000) Total Assets 760,134 791,570 788,637 932,338 1,133,508 Gross Loans 454,991 461,262 453,783 570,766 681,826 Total Deposits 638,539 663,562 671,471 785,761 984,514 T
Slide 21: Securities Portfolio
Securities Portfolio FHLB Stock 1.1% Other 1.7% FRB Stock at Cost 0.5% Held to Maturity 5.0% FHLB Stock at Cost 1.1% US Treasury 10.6% Non-Taxable Municipals 30.3% U.S. Agency Notes 36.9% Available f or Sale 93.5% U.S. Agency MBS 13.2% Taxable Municipals 5.2% Certif icates of Deposit 0.9% 20 Source:
Slide 22: Non-GAAP Disclosure Reconciliations
L R li d G i S iti ($587) ($58) $4 Non-GAAP Disclosure Reconciliations ($000s, Except per Share) Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 Mar 14 Net Income $2,159 $1,728 $2,348 $2,357 $2,347 $1,323 Less: ea ze a ns on ecurities ($967) ($108) ( ) ($307) $4 Less: Nonrecurring Revenue Plus: Nonrecurring Expe
Slide 23: Non-GAAP Disclosure Reconciliations: Core Earnings per Share
Core Earnings per Share $1 12 $1 16 Non-GAAP Disclosure Reconciliations ($000s, Except per Share) 2010 2011 2012 2013 Net Income $9,373 $8,115 $8,270 $8,780 Less: Realized Gains on Securities Less: Nonrecurring Revenue Plus: Nonrecurring Expenses Plus: Amortization of Intangibles ($948) ($792) $0 $5