LCNB Corp
Annual Report 2015

Plain-text annual report

1~ - - Oarke ~• ,, .~ ~ ~~ ~ ~ Q D ••~~~ N~~am~ ~hampa~cj~ ~e ~ P r c-b\e Moc~tgomecy C\ark Mad~soh Fc-ac~k\v Fay emote Uc~~oc~ F < ac~k\~c~ [3ut\er Wa«ec~ L\~~tor UY 4iacc~~\toc~ ~t C\ecmoc~~ H~gti\and Oea r-~ e ~_ . ~ d~ - 8o~~e ~~0 ~ tourers. Unique to this team are their backgrounds; they are from farming families who have been successful in agriculture for generations. Few financial institutions offer the first-hand expertise in farming combined with the knowledge of governmental programs and lending cycles that LCNB's Ag team provides. The Trust and Investment Services group is an addi- tional core area LCNB has built to serve its customers' estate planning and financial management needs. This team of experienced and qualified professionals has developed a strong reputation for providing personal fiduciary service to generations of customers through- out the markets we serve. Deposit Services offers a suite of products that have been designed with input from business and personal banking customers. LCNB continues to upgrade its technology to include the mobile and digital conve- niences our customers desire. Services like mobile and online banking, remote data capture, merchant services and treasury management services provide tools to meet the daily demands of our busy customers. As we enter 2016, LCNB continues to take advantage of expanding opportunities.lhe Bank's new Operations Center, located one block north of the Main Office in Lebanon, is under construction. Steve Wilson, following a 41 year career with LCNB, announced his retirement in December along with the appointment of President Steve Foster to the CEO posi- tion. Working shoulder-to-shoulder for many years, this smooth transition paves the way for LCNB National Bank to take full advantage of the new opportunities ahead on its expanding horizon. F ~c ark\ter -- - .~,~ 'Fae~c'~e\c~. ~Q ~rr~ ~, ~:, F ay e~'te Q ~c~a~r 1 ~~ ~c'`oc~~r~ ~ L\~r''cS~r moss v`,~,~oc~ '~ ~o~,~ '~ ~a~~S i \ 1 b 1 ` ' ~'i n ~~ i.:... a::: . ~- ~ i ~ ~ t :. i / ~ LC N B Officers Stephen P. Wilson 41 Chairman &CEO 44 Steve P. Foster 39 President 42 24 Executive VP Robert C. Haines, II 24 Matthew P. Layer 33 33 Executive VP Leroy F. McKay 30 20 Executive VP Eric J. Meilstrup 28 28 Executive VP 15 Senior VP Stephen P. Anglin 37 29 Senior VP Brian N. Bausmith 29 Kenneth R. Layer 33 Senior VP 33 Jeff Meeker 3 Senior VP 32 37 Senior VP Patricia D. Mitchell 37 Rebecca H. Roess 7 Sr. VP/Trust Off. 17 John Rost 9 Senior VP 33 Bradley A. Ruppert 8 Sr. VP/Trust Off. 17 Timothy J. Sheridan 26 Senior VP 39 Ann M. Smith 29 29 Senior VP Peter G. Berninger 33 11 Vice President 2 Vice President David Bock 14 Gene G. Bonny 5 Vice President 10 Pam Bowles 24 3 Vice President John Chartrand 2 Vice President 13 2 Vice President Daniel Daughtery 37 2 Vice President Jeffery M. Doles 30 2 Vice President Deborah Fitzwater 23 13 Vice President Lisa A. Gibson 25 3 Vice President Jodi Hart 19 Kelly Haworth 7 Vice President 35 James Hester 34 2 Vice President Kimberly B. Isaacs 20 20 Vice President Annie S. Joseph 10 VP/Regional 18 Mark Kennard 12 4 Vice President Steven C. Lautenslager 26 Vice President 26 Michael Lavatori 27 13 Vice President 26 Vice President Kimberli R. Layer 26 32 10 Vice President Roger P. Mersch 1 Vice President John M. Minyo 29 24 3 Vice President Lori Raines 2 Vice President Scott Roman 25 7 Vice President Nathan Sachritz 36 18 Vice President Lonnie D. Schear 42 Connie A. Sears 13 Vice President 28 Deborah G. Stevens 39 14 Vice President David A. Stitsinger 37 9 Vice President Beverly K. Taylor 39 Vice President 39 John L. Torbeck 30 6 Vice President Juli Troutman 2 Vice President 15 5 Vice President Elizabeth G. Vogele 34 Frank Williams 2 VP/Trust Officer 38 Gregory Woods 3 Vice President 13 Melanie K. Crane 30 AVP/Trust Officer 30 Myra Frame 2 AVP/Trust Officer 34 S. Diane Ingram 24 AVP/Trust Officer 24 Jacqueline A. Manley 3 AVP/Trust Officer 9 20 Christina L. Harris 25 Patricia S. Hogan Ronda Holdren 3 2 Michele Kreitzer Paula L. Lee 12 Teresa A. McCurley 27 2 Deborah Bradley 24 Amy L. Butler 17 William E. Childers 8 Clint Day 10 Lisa E. Emmel Chris Fourman 2 Kimberly J. Johnson-Hall 35 9 Judith Neiheisel 3 Mark Pennington 2 Sara Sorrell 8 Tyler Tepe Simone Walter 12 23 Rhonda G. Wetzig Sarah Wilson 6 17 Jenny Bates Ann Blackburn 3 2 Tom Borucki 11 Cynthia Browning 16 Michelle Bryan Bonnie Burke 3 15 Melissa M. Cordes 21 Karen A. Day Chris Fisher 11 9 Jenny Giltrow 20 Traci Hammiel Terry J. Howard 26 Mary Lynn Johnson 29 12 M. Teresa Jenkins 13 Veronica Keen 3 Phoebe Kerby 14 Amy R. Kobes Kim McDonald 19 1 Gary Kozee 26 Michele McIntosh 4 Michael Nusbaum 15 Angela Otis 12 Patricia Q. Partch 20 Janet M. Preston Tami Reisinger 3 Glenn Schnell 3 18 Tonya Scott Betty Seibert 18 Lenora Schoultheis 18 1 Mark Tessneer 2 Ann Weadick Jarrell Witty 2 7 Lindsay Zirkle 20 Regional AVP 25 Regional AVP 24 Regional AVP 27 Regional AVP 21 Regional AVP 27 Regional AVP 34 Assistant VP 24 Assistant VP Assistant VP 20 8 Assistant VP 26 Assistant VP 31 Assistant VP 37 Assistant VP Assistant VP 33 Assistant VP 13 4 Assistant VP 8 Assistant VP 12 Assistant VP 23 Assistant VP 6 Assistant VP 17 Asst. IT Officer Branch Officer 28 20 Asst. IT Officer Branch Officer 11 Training Officer 16 Branch Officer 28 21 Branch Officer Assistant Cashier 21 IT Officer 13 Assistant Cashier 9 Asst. Trust Officer 20 Branch Officer 26 Assistant Cashier 29 42 Branch Officer Branch Officer 13 Branch Officer 18 Asst. Trust Officer 14 Asst. Loan Officer 19 Investment Officer 17 Branch Officer 26 Asst. Trust Officer 4 Assistant Cashier 15 Bus. Dev. Officer 30 Assistant Cashier 30 Branch Officer 12 Investment Officer 7 Assistant Cashier 18 26 Branch Officer Branch Officer 45 Investment Officer 22 Assistant Cashier 13 Investment Officer 8 Asst. Loan Officer 7 ANNUAL REPORT 2015 6 LCNB CORP. Financial Highlights 2015 For the Years Ended December 31, Income Statement Net interest income ........................................ $ 39,331 Net income from continuing operations ...................... 11,474 Income from disconrinued operations, net of tax .............. Net income ............................................... Dividends declared per common share ....................... Basic earnings per common share: Continuing operations .................................... Discontinued operations .................................. Diluted earnings per common share: Continuing operarions .................................... Discontinued operations .................................. 11,474 0.64 1.17 1.18 - - - (Dollars in thousands, except per share data) 2014 2013 2012 2011 35,887 9,869 29,432 8,780 25,049 8,270 - - - 9,869 0.64 8,780 0.64 8,270 0.64 25,706 7,322 793 8,115 0.64 1.06 - 1.05 - 1.12 - 1.10 - 1.23 1.09 - 0.12 1.22 1.08 - 0.12 Balance Sheet Loans,net ................................................ $ 767,809 1,178,750 Earning assets ............................................ 1,280,531 Total assets ............................................... 1,087,160 Total deposits ............................................. 37,387 Short-term borrowings ..................................... 5,947 Long-term debt ........................................... 140,108 Total shareholders equity .................................. Per common share: Book value at yearend .................................... 14.12 695,835 1,014,640 1,108,066 946,205 16,645 11,357 125,695 570,766 857,653 932,338 785,761 8,655 12,102 118,873 450,346 732,968 788,637 671,471 13,756 13,705 82,006 458,331 736,119 791,570 663,562 21,596 21,373 77,960 13.50 12.80 12.18 11.63 Performance Ratios Return on average assets ................................... Return on average shareholders' equity ....................... 0.94% 8.43% 0.88% 8.04% 0.93% 9.02% 1.02% 10.22% 1.02% 10.89% Condensed Consolidated Balance Sheets At December 31, (Dollars in thousands) ASSHTS: Cash and due from banks ........................................................................ Interest-bearing demand deposits ................................................................ Total cash and cash equivalents .................................................................. Investment securities: Available-for-sale, at fair value ................................................................. Held-to-maturity, at cost ...................................................................... Federal Reserve Bank stock, at cost ............................................................... Federal Home Loan Bank stock, at cost ............................................................ Loans,net ..................................................................................... Premises and equipment,net .................................................................... Goodwill...................................................................................... Core deposit and other intangibles ................................................................ Bank owned life insurance ....................................................................... Other assets ................................................................................... 2015 $ 14,155 832 14,987 377,978 22,633 2,732 3,638 767,809 22,100 30,183 5,396 22,561 10,514 2014 14,235 1,610 15,845 285,365 22,725 2,346 3,638 695,835 20,733 27>638 4,780 21,936 7,225 TOTAL ASSETS ....................................................................... $1,280,531 1,108,066 LIABILITIES: Deposits: Noninterest-bearing .......................................................................... Interest-bearing ............................................................................. Total deposits .................................................................................. Short-term borrowings .......................................................................... Long-term debt ................................................................................ Accrued interest and other liabilities .............................................................. $ 250,306 836,854 1,087,160 37,387 5,947 9,929 TOTAL LIABILITIES ..................................................... ....... 1,140,423 213,303 732,902 946,205 16,645 11,357 8,164 982,371 SHAREHOLDERS' EQUITY: Preferred shares - no par value, authorized 1,000,000 shares, none outstanding ......................... Common shares - no par value, authorized 12,000,000 shares, issued 10,679,174 and 10,064,945 shares at December 31, 2015 and 2014, respectively ............................................... Retained earnings .............................................................................. Treasury shares at cost, 753,627 shares at December 31, 2015 and 2014 ............................... Accumulated other comprehensive income (loss), net of taxes ........................................ TOTAL SHAREHOLDERS' EQUITY ....................................................... - - 76,908 74,629 (11,665) 236 140,108 67,181 69,394 (11,665) 785 125,695 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY ....................................... $1,280,531 1,108,066 ANNUAL REPORT 2015 7 LCNB CORP Condensed Consolidated Statements of Income For the years ended December 31, (Dollars in thousands, except per share data) INTEREST INCOME: Interest and fees on loans ............................................................... Interest on investment securities :........................................................ Taxable .............................................................................. Non-taxable .......................................................................... Other investments ..................................................................... 2015 2014 2013 $35,255 32,706 27,325 4,197 2,848 329 3,757 2,713 301 TOTAL INTEREST INCOME ............................................................. 42,659 39,477 INTEREST EXPENSE :.......................................................... Interest on deposits .................................................................... Interest on short-term borrowings ........................................................ Interest on long-term debt ............................................................... TOTAL INTEREST EXPENSE ............................................................ NET INTEREST INCOME ............................................................... PROVISION FOR LOAN LOSSES ......................................................... NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES ........................... NON-INTEREST INCOME :...................................................... Trust income .......................................................................... Service charges and fees on deposit accounts ............................................... Net gain on sales of securities ............................................................ Bank ownedlifeinsuranceincome ........................................................ Gains from sales of mortgage loans ....................................................... Other operating income ................................................................. 3,009 24 295 3,328 39,331 1,366 37,965 3,262 4,920 495 625 343 478 3,161 22 407 3,590 35,887 930 34,957 2,903 4,838 149 671 147 434 3,369 2,573 230 33,497 3,602 25 438 4,065 29,432 588 28,844 2,518 4,155 1,060 678 339 340 TOTAL NON-INTEREST INCOME ........................................................ 10,123 9,142 ~~.090 NON-INTEREST EXPENSE :..................................................... Salaries and employee benefits ........................................................... Equipment expenses .................................................................... Occupancy expense,net ................................................................. State franchise tazc ...................................................................... Marketing ............................................................................. Amortization of intangibles .............................................................. FDIC premiums ........................................................................ ATM e~tpense .......................................................................... Computer maintenance and supplies ...................................................... Telephone expense ..................................................................... Contracted services ..................................................................... Other real estate owned ................................................................. Merger-related expenses ................................................................ Other non-interest expense .............................................................. TOTAL NON-INTEREST EXPENSE ....................................................... INCOME BEFORE INCOME TAXES ............................................... PROVISION FOR INCOME TAXES ........................................................ 17,593 1,257 2,307 1,001 720 700 598 698 782 707 842 489 643 4,055 32,392 15,696 4,222 NET INCOME ........................... ................... $11,474 15,762 1,316 2,232 955 703 574 660 624 794 690 880 285 1,400 3,969 30,844 13,255 3,386 9,869 13,487 1,232 2,042 846 561 334 499 534 616 566 568 (30) 1,433 3,524 26,212 11,722 2,942 8,780 Earnings per common share :............................................................. Basic................................................................................. Diluted .............................................................................. Weighted average shares outstanding :..................................................... Basic ................................................................................. Diluted .............................................................................. $1.18 1.17 1.06 1.05 1.12 1.10 9,704,965 9,811,476 9,297,019 9.406.346 7,852,514 7,982,997 ANNUAL REPORT 2015 8 LCNB CORP. LCNB National Bank Locations and Hours MAIN OFFICE • 2 North Broadway • P.O. Box 59 •Lebanon, Ohio 45036 BUTLER COUNTY Fairfield Office 765 Nilles Rd. Fairfield, Ohio 45014 Hamilton Office 794 NW Washington Blvd. Hamilton, Ohio 45013 Middletown Office 4441 Marie Drive Middletown, Ohio 45044 Monroe Office 101 Clarence F. Warner Drive Monroe, Ohio 45050 Oxford Office 30 West Park Place Oxford, Ohio 45056 CLERMONT COUNTY Goshen Office 6726 Dick Flynn Blvd. (St. Rte. 28 & 132) Goshen, Ohio 45122 CLINTON COUNTY Wilmington Office 1243 Rombach Avenue Wilmington, Ohio 45177 FAYETTE COUNTY Washington Court House Office 100 Crossings Drive Washington Court House, Ohio 43160 HAMILTON COUNTY Colerain Township Office 3209 West Galbraith Rd. Cincinnati, Ohio 45239 Loveland Office 500 Loveland-Madeira Rd. Loveland, Ohio 45140 MONTGOMERY COUNTY Brookville Office 225 W. Upper Lewisburg Salem Road Brookville, Ohio 45309 BRANCH OFFICES Centerville Office 9605 Dayton-Lebanon Pike (St. Rte. 48) Centerville, Ohio 45458 Western Avenue Office 1006 Western Avenue Chillicothe, Ohio 45601 Hay Avenue Office 121 Hay Avenue Brookville, Ohio 45309 Oakwood Office 2705 Far Hills Avenue Dayton, Ohio 45419 PREBLE COUNTY Barron Street Office 1697 North Barron Street Eaton, Ohio 45320 Eaton Office 110 West Main Street Eaton, Ohio 45320 Lewisburg Office 522 South Commerce Street Lewisburg, Ohio 45338 New Paris Office 201 South Washington Street New Paris, Ohio 45347 West Alexandria Office 55 East Dayton Street West Alexandria, Ohio 45381 ROSS COUNTY Bridge Street Office 1240 North Bridge Street Chillicothe, Ohio 45601 Chillicothe Office 33 West Main Street Chillicothe, Ohio 45601 Clarksburg Office 10820 Main Street Clarksburg, Ohio 43115 Frankfort Office 1 North Main St. Frankfort, Ohio 45628 WARREN COUNTY Auto Bank 35 N. Mechanic Lebanon, Ohio 45036 Columbus Avenue Office 730 Columbus Avenue Lebanon, Ohio 45036 Hunter Office 3878 St. Rte. 122 Franklin, Ohio 45005 Lebanon High School Office Warrior Branch 1916 Drake Road Lebanon, Ohio 45036 Maineville/Hamilton Township Office 7795 South State Route 48 Maineville, Ohio 45039 Mason/West Chester Office 1050 Reading Road (U.S. Rte. 42) Mason, Ohio 45040 Otterbein Office Campus Center Building 585 N. St. Rte. 741 Lebanon, Ohio 45036 Roachester/Morrow Office 6123 East U.S. 22 & 3 Morrow, Ohio 45152 South Lebanon Office 603 Corwin Nucon Blvd. South Lebanon, Ohio 45065 Springboro/Franklin Office 525 West Central Ave. (St. Rte. 73) Springboro, Ohio 45066 Waynesville Office 9 N. Main Street Waynesville, Ohio 45068 ELECTRONIC BRANCH •Countryside YMCA • 1699 Deerfield Road •Lebanon, Ohio 45036 BANKING HOURS All locations (except as noted) Monday -Thursday ............... 9-5 Friday .......................... 9-6 Saturday ........................ 9-1 Drive Thru open Mon.- Sat. at 8:30 am Barron Street Office Monday -Friday .................. 9-6 Saturday ........................ 9-1 Drive-Thru open Mon.-Sat. at 8:30 am Chillicothe Office -Main Street Saturday (Office and Drive Thru) Closed Clarksburg Office Monday, Tuesday, Thursday .. 9-12 / 1-5 Wednesday ....................Closed Friday .....................9-12 / 1-6 Saturday ........................ 9-1 Drive Thru open Mon.- Sat. at 8:30 am Hay Avenue Office Monday, Tuesday, Thursday 8:30-1 / 2-5 Wednesday ....................Closed Friday ................... 8:30-1 / 2-6 Saturday ......................8:30-1 Otterbein Monday-Thursday........... 9-12 / 1-5 Friday .....................9-12 / 1-6 Saturday ......................Closed PHONE NUMBERS CenturyLink Customers (513) 932-1414 Dayton Area .................... (937) 704-9490 Fayette County ............... (740) 335-2257 AT&T Customers............ (513) 423-9911 Oxford Area .................... (513) 523-2141 Brookville Area :.............. (937) 833-2111 Cincinnati Bell Cust....... (513) 677-2203 Preble County ................. (937) 456-5544 Ross County.................... (740) 775-6777 Wilmington Area............ (937) 383-4500 Toll Free ......................... (800) 344-2265 FAX.................................. (513) 933-5262 "BANKLINE" 24-Hour Automated Telephone Banking Service CenturyLink Customers - (513) 932-2265 AT&T/Verizon Customers (toll-free) - (888) 786-5262 Cincinnati Bell Customers - (513) 336-2265 Up To-The-Minute Time•Temperature•Weather CenturyLink - (513) 932-1111 AT&T Customers - (513) 727-1010 ~ • ~W~LCNB.COIll MEMBER FDIC Sits CORP. lvlember FD~~ LENDER p, O. Box 59, 2 North Broadway, Lebanon, Ohio 45036 (513) 932-1414, www.LCNB.com, 800-344-BANK (2265) f t in •

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