Lcnb Corporation · NASDAQ:LCNB
Lcnb — Investor Presentation (June 2020)
21 slides from Lcnb's investor presentation, Jun 10, 2020
Slide 1: Investment Highlights June 2020
LCNB Investment Highlights June 2020
Slide 2: Forward Looking Statements
Forward Looking Statements 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
Slide 3: Forward Looking Statements
Forward Looking Statements • the effects on our mortgage warehouse lending and retail mortgage businesses of changes in the mortgage origination markets, including changes due to changes in monetary policies, interest rates and the regulation of mortgage originators, services and securitizers; • tim
Slide 4: Investment Highlights - Overview
LCNB Investment Highlights - Overview Stable & Attractive 143 year-old community bank located in attractive markets in southwestern Ohio and Markets Columbus with good demographics, stable home prices, and strong economic activity High and consistent profitability driven by disciplined organic l
Slide 5: Investment Highlights – Recent Events
LCNB Investment Highlights – Recent Events Highlights of Q1’20 LCNB reported Q1’20 and LTM EPS of $0.39 and $1.48, respectively Net Interest Income for Q1’20 was $787,000 and $3,821,000 greater than the comparable periods in 2019 Even with a $1,173,000 Provision for Loan Losses, LCNB achieved
Slide 6: COVID-19 Response & Paycheck Protection Program (PPP) Update
COVID-19 Response & Paycheck Protection Program (PPP) Update Employees Customers Community Closed branch lobbies but kept drive-thrus Kept drive-thrus open and allowed for lobby Participated in the PPP loan process. Two- open the entire time. Did allow for some access by appointment only. thir
Slide 7: Franchise Market Overview
LCNB Franchise Market Overview $1.64 billion in assets, $1.27 billion in loans and $1.35 billion in deposits, headquartered in Lebanon, Ohio (Warren County) 33 branches in southwestern Ohio, primarily in and around the attractive Cincinnati MSA along with 1 new branch in the Columbus MSA 11th
Slide 8: Management Team
LCNB Management Team Experienced management team with an average of 31 years of banking experience and many executives that have worked together for nearly 30 years Years of Name Experience Title Background Eric J. Meilstrup 32 President, CEO & Eric has been President of LCNB Corp. and LCNB Nation
Slide 9: Financial Highlights
LCNB Financial Highlights LCNB Corp. Calendar Year Ended LTM Quarter Ended LCNB 2015 2016 2017 2018 2019 3/20 6/19 9/19 12/19 3/20 Total Assets 1,280,531 1,306,799 1,295,638 1,636,927 1,639,308 1,636,280 1,642,012 1,644,447 1,639,308 1,636,280 Gross Loans 770,938 819,803 849,060 1,198,623 1,243,451
Slide 10: Consistent and Strong ROATCE
LCNB Investment Highlights Consistent and Strong ROATCE1 LCNB has consistently delivered solid operating performance and profitability regardless of economic climate, as demonstrated in the chart below. LCNB has been at approximately an 11% Return on Average Tangible Common Equity or higher in var
Slide 11: Loan Portfolio
LCNB Loan Portfolio Balanced Loan Portfolio Sound Strong Loan Portfolio LCNB has a well balanced loan portfolio in its Central Balanced real estate portfolio with a weighted average LTV and Southwestern Ohio markets which have seen of 48.1% representing roughly 85.0% of the assets in the fewer c
Slide 12: Loan Deferrals
LCNB Loan Deferrals Deferrals by Type ($000) Largest Commercial Deferral Types (61% of Total) ($000) $14,024 — 4% $32,072 — 14% $51,288 — 23% $38,301 — 17% $43,173 — 19% $371,435 — 96% $62,272 — 27% Consumer Commercial Hotel/Motel Dental Retail Building Office Building Multi-Family Source: Company D
Slide 13: Deposit & Loan Composition
Deposit & Loan Composition Deposit Composition Loan Composition Farm Construction 3.6% HELOC 5.8% 2.3% Consumer Time > 2.3% $100k 11.5% 1-4 Family Time < C&I 22.8% $100k 6.7% 12.0% Transaction 48.9% MMDA + Savings Multifamily + CRE 27.5% 56.5% MRQ Cost of Interest-bearing Deposits 0.85% MRQ Yield on
Slide 14: NCO / Average Loans (%)
LCNB Investment Highlights NCO / Average Loans (%) 1 LCNB has achieved consistently strong profitability without reaching for growth or compromising its credit standards. On the contrary, LCNB’s intimate knowledge of its communities and its customers has resulted in minimal credit losses throughou
Slide 15: Stable Common Dividends
Stable Common Dividends Common Dividend Payments Per Share LCNB has never decreased or suspended its dividend Since Holding Company creation in 1998, LCNB has consistently maintained or increased its quarterly dividend LCNB shares currently yield 4.45% versus a median for exchange traded banks
Slide 16: Return of Capital
LCNB Return of Capital Common Dividend Payments Per Share1 In 12 of the last 15 years, LCNB has returned half or more of its net income to shareholders through dividends. Unlike many banks during the 2008 – 2011 period, LCNB never reduced its dividend and maintains a strong dividend payout ratio.
Slide 17: Liquidity
LCNB Liquidity Ten-year Liquidity Growth LCNB has grown organically and through acquisitions and as a result has seen a significant increase in liquidity. 45,000 40,000 35,000 Current Three Month ADTV: 30,488 30,000 25,000 20,000 15,000 10,000 5,000 0 LCNB Three Month ADTV Current Three Month ADTV
Slide 18: Ownership Summary
LCNB Ownership Summary Stakeholder/Insider Ownership Information Top 20 - Institutional Ownership Information Holder % Owned Holder % Owned William G. Huddle 1.36 BlackRock Inc. 5.41 Michael J. Johrendt 1.16 Vanguard Group Inc. 4.55 John H. Kochensparger III 1.14 Pacific Ridge Capital Partners LLC 2
Slide 19: Total Return
LCNB Total Return Ten-year Total Return (%) 200% 150% 98.9% 100% 86.3% 85.7% 50% 0% -50% LCNB SNL U.S. Bank & Thrift SNL Micro Cap U.S. Bank & Thrift Source: S&P Global Market Intelligence as of 6/5/20 19
Slide 20: Attractive Relative Valuation
Attractive Relative Valuation Selected Midwest Bank Peer Group Banks and thrifts headquartered in Ohio, Kentucky and Indiana with assets $1 billion – $3 billion, excluding merger targets Financials as of: 3/31/2020 Operating Information Market Information TCE / LTM LTM Price / Price / Tang. LTM Co
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