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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.
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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
•