Lcnb Corporation · NASDAQ:LCNB
Lcnb — Investor Presentation (November 2022)
31 slides from Lcnb's investor presentation, Nov 2, 2022
Slide 1: LCNB Q3 2022 Investor Presentation
LCNB Operations Center, Lebanon OH Investor Presentation Q3 2022 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. | Q3 2022 Investor Presentation
Slide 4: Successfully Serving Our Communities for 145 Years
L C N B C O R P . | Q 3 , 2 0 2 2 I N V E S T O R S U M M A R Y P A G E 4 Successfully Serving Our Communities for 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 20
Slide 5: Compelling Community Banking Presence
L C N B C O R P . | Q 3 , 2 0 2 2 I N V E S T O R S U M M A R Y P A G E 5 Compelling Community Banking Presence Operating in robust, growing Ohio markets Cincinnati Counties Dayton Counties Columbus Counties Micropolitan Counties Market Highlights • Market includes 16 counties in OH, KY and IN • MSA
Slide 6: Where Does LCNB Stand Today?
Compelling Scale One of the largest community banks in Ohio with $1.91 billion in assets, and over 60,000 Personal, Business and Wealth customers Excellent Asset Quality Proven asset quality throughout multiple cycles, including the recent Great Financial Crisis and the global COVID-19 pandemic L C
Slide 7: Corporate Purpose: Go Further Together
L C N B C O R P . | Q 3 , 2 0 2 2 I N V E S T O R S U M M A R Y P A G E 7 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
Slide 8: Strategic Transformation
Strategic Transformation LCNB Corp. | Q3 2022 Investor Presentation
Slide 9: Growth Oriented Strategic Plan
L C N B C O R P . | Q 3 , 2 0 2 2 I N V E S T O R S U M M A R Y P A G E 9 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 Longstandin
Slide 10: Diverse Financial Services
L C N B C O R P . | Q 3 , 2 0 2 2 I N V E S T O R S U M M A R Y P A G E 1 0 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 2011 – 2021
Slide 11: Expanding Wealth Management Opportunities
L C N B C O R P . | Q 3 , 2 0 2 2 I N V E S T O R S U M M A R Y P A G E 1 1 $492,197 $1,056,763 FY2016 FY2021 5-Year CAGR Growth: 16.5% $3,286 $6,674 FY2016 FY2021 5-Year CAGR Growth: 15.2% Wealth Management Assets (in thousands) FIDUCIARY INCOME (in thousands) Expanding Wealth Management Opportunit
Slide 12: Digital Trends and Strategy
LCNB’s established digital strategy was underway prior to the pandemic, further extending 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 10.5% Year-over-Year 3Q20
Slide 13: Successful Strategic Transformation
$- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 Brokerage Accounts Cash Management Mortgage Loans Serviced Wealth LCNB Corp. Assets L C N B C O R P . | Q 3 , 2 0 2 2 I N V E S T O R S U M M A R Y P A G E 1 3 Successful Strategic Transformation From 2011 to 2021, Total A
Slide 14: Financial and Operating Highlights
Financial and Operating Highlights LCNB Corp. | Q3 2022 Investor Presentation
Slide 15: Year-to-Date 2022 Highlights
L C N B C O R P . | Q 3 , 2 0 2 2 I N V E S T O R S U M M A R Y P A G E 1 5 Total Assets ($ in billions) $1.88 $1.90 9/30/2021 9/30/2022 • Total assets up 1.1% • Loans, net increased 2.8% as a result of strong year-over-year commercial and industrial, and commercial real estate loan growth Nonperfor
Slide 16: Capital Allocation: Stock Repurchase and Cash Dividend
L C N B C O R P . | Q 3 , 2 0 2 2 I N V E S T O R S U M M A R Y P A G E 1 6 Stock Repurchase (in thousands) $1,872 $8,310 $22,980 2020 2021 2022 YTD • Year-to-date, LCNB repurchased 1,172,456 shares or 9.4% of its outstanding common stock prior to the repurchase • The Board will continue to evaluate
Slide 17: Robust Capital Levels
L C N B C O R P . | Q 3 , 2 0 2 2 I N V E S T O R S U M M A R Y P A G E 1 7 Robust Capital Levels Supports strategic and organic growth objectives Average Loans to Deposits 92.4% 84.8% 83.2% 12/31/2020 12/31/2021 9/30/2022 • Loan growth funded through core deposits Total Risk-Based Capital $174,079
Slide 18: Deposit Performance
Overview Deposit Trends (in thousands) Core Deposits to Total DepositsDeposit Composition (in thousands) $- $500,000 $1,000,000 $1,500,000 $2,000,000 9/30/2021 9/30/2022 Noninterest-bearing Interest-bearing • Off balance sheet insured cash sweep program • Total deposits increased 3.4% year-over-year
Slide 19: Lending Overview
8.3% 66.0%23.0% 2.1% 0.6% 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, an
Slide 20: CRE Trends
L C N B C O R P . | Q 3 , 2 0 2 2 I N V E S T O R S U M M A R Y P A G E 2 0 Q3 2022 CRE Breakdown Top CRE Categories (includes non-owner occupied and owner occupied) 66.3% 33.7% CRE Non-Owner Occupied CRE Owner Occupied Category Balance % of CRE Portfolio Retail Building $146.2 mil. 24% Office Build
Slide 21: Asset Quality
Net Charge-Offs to Average Loans L C N B C O R P . | Q 3 , 2 0 2 2 I N V E S T O R S U M M A R Y P A G E 2 1 • Proven asset quality throughout multiple cycles • Net Charge-offs to average loans outstanding peaked at 0.44% during the great financial crisis • For the 2022 nine-month period, net charge
Slide 22: Focused on Maintaining Strong Profitability
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% CAGR • 2021 EPS increased 7.1% to $1.66 per diluted share • Strong full year returns at December 31, 2021:
Slide 23: Corporate Governance
Corporate Governance LCNB Corp. | Q3 2022 Investor Presentation
Slide 24: Longstanding and Growing Dividend
DIVIDEND HIGHLIGHTS 2022 third quarter cash dividend increased 5.3% over the prior year period At September 30, 2022, LCNB’s dividend yield was 5.0% $- $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 $0.90 L C N B C O R P . | Q 3 , 2 0 2 2 I N V E S T O R S U M M A R Y P A G E 2 4 1 2022 Dividend An
Slide 25: Board of Directors
L C N B C O R P . | Q 3 , 2 0 2 2 I N V E S T O R S U M M A R Y P A G E 2 5 Name & Principal Occupation Age Director Since Independent Significant Shareholder Banking Sector Corporate Finance Wealth Management Mary E. Bradford Former IT Executive, GE Aviation 66 2018 Spencer S. Cropper, Chairman CPA
Slide 26: Executive Management Team
L C N B C O R P . | Q 3 , 2 0 2 2 I N V E S T O R S U M M A R Y P A G E 2 6 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 also an active member of the
Slide 27: 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 • History of strong financial performance • Strong, competitive position within large, compelling,
Slide 28: Appendix
Appendix LCNB Corp. | Q3 2022 Investor Presentation
Slide 29: 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 30: Quarterly Financials
Quarterly Financials L C N B C O R P . | Q 3 , 2 0 2 2 I N V E S T O R S U M M A R Y P A G E 3 0 Quarterly Financials Dollars in thousands Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Net interest income 14,073 14,310 14,223 15,167 15,444 Provision (credit) for loan losses 306 (508) 49 377 (157) Noninter
Slide 31: LCNB contact information
31 lcnbcorp.com NASDAQ: LCNB LCNB National Bank | lcnb.com 2 N. Broadway Lebanon, OH 45036 Member FDIC | Equal Housing Lender #furthertogether