Message #5 From:
Stock News Bot Date: October 18, 2005 08:20:00 AM
LCNB News LCNB Corp. Reports Financial Results for the Nine Months Ended September 30, 2005
LEBANON, Ohio--(BUSINESS WIRE)--Oct. 18, 2005--LCNB Corp. (OTCBB:LCNB) today announced earnings of $4,919,000 or $1.49 basic earnings per share for the nine months ended September 30, 2005, compared to $4,800,000 or $1.43 basic earnings per share for the comparable period in 2004. Return on average assets for the nine-month periods in 2005 and 2004 were 1.23% and 1.26%, respectively. Return on average equity for the 2005 period was 12.55% compared to 12.21% for the 2004 period.
Net interest income for the 2005 period was $185,000 or 1.4% greater than for the same period in 2004. The increase was primarily due to growth in LCNB's loan portfolio, from $336.4 million at September 30, 2004 to $353.9 million at September 30, 2005. Non-interest income for the 2005 period was $269,000 greater than for the same period in 2004. The increase is primarily due to income from the trust department, brokerage services, bank owned life insurance, and service charges and fees on deposit accounts, partially offset by the absence of $539,000 in gains recognized during 2004 from the sale of $15.9 million in investment securities and approximately $2.5 million in credit card receivables. Non-interest expenses for the 2005 period were $641,000 greater than for the same period in 2004 primarily due to increases in salaries and wages, pension, and health insurance costs.
Total assets grew $20.3 million or 3.9%, from $519.2 million at September 30, 2004 to $539.5 million at September 30, 2005. Loans increased $17.5 million as discussed above and bank owned life insurance increased $10.4 million. The loan growth was primarily due to growth in the commercial loan portfolio. LCNB did not hold bank owned life insurance during the 2004 period. Funding the asset growth was a $21.4 million or 4.7% increase in total deposits. The deposit growth was primarily in NOW accounts and certificate of deposit accounts.
Assets under management include LCNB's corporate assets discussed above, the trust and brokerage businesses, mortgage loans serviced for others, and business cash management accounts. Total assets under management grew $51.1 million or 6.5%, from $792.0 million at September 30, 2004 to $843.1 million at September 30, 2005. In addition to the $20.3 million growth in LCNB's assets, the trust department grew by $21.5 million or 12.4% and brokerage accounts grew by $13.0 million, or 61.8%. Brokerage accounts are offered through a partnership with UVEST Financial Services, Inc.
As a result of LCNB's earnings growth and its stock repurchase program, LCNB's book value per share at September 30, 2005 was $15.83, a 1.2% increase from $15.64 at September 30, 2004. Dividends paid to shareholders during the first nine months of 2005 totaled $0.87 per share, a 4.2% increase from total dividends of $0.835 per share for the comparable period in 2004.
LCNB Corp. is a financial holding company headquartered in Lebanon, Ohio. Affiliates of LCNB Corp. are Lebanon Citizens National Bank, with twenty-one offices located in Warren, Butler, Clinton, Clermont, and Hamilton Counties, Ohio, and Dakin Insurance Agency, Inc. Additional information about LCNB Corp. and information about products and services offered by Lebanon Citizens National Bank and Dakin Insurance Agency can be found on the Internet at www.lcnb.com and www.dakin-ins.com.
Certain matters disclosed herein may be deemed to be forward-looking statements that involve risks and uncertainties, including regulatory policy changes, interest rate fluctuations, loan demand, loan delinquencies and losses, and other risks. Actual strategies and results in future time periods may differ materially from those currently expected. Such forward-looking statements represent management's judgment as of the current date. LCNB Corp. disclaims any intent or obligation to update such forward-looking statements.
LCNB Corp. and Subsidiaries
Financial Highlights
For the Nine Months Ended September 30,
(Dollars in thousands, except per share amounts)
%
2005 2004 Change
Condensed Income Statement
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Interest income $ 20,362 19,096 6.63%
Interest expense 6,517 5,436 19.89%
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Net interest income 13,845 13,660 1.35%
Provision for loan losses 262 430 -39.07%
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Net interest income after provision 13,583 13,230 2.67%
Non-interest income 5,945 5,676 4.74%
Non-interest expense 12,970 12,329 5.20%
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Income before income taxes 6,558 6,577 -0.29%
Provision for income taxes 1,639 1,777 -7.77%
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Net income $ 4,919 4,800 2.48%
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Basic earnings per common share $ 1.49 1.43 4.20%
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Dividends per common share $ 0.87 0.835 4.19%
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Average basic shares outstanding 3,311,763 3,358,429
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Selected Balance Sheet Items
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Investment securities $136,857 136,289 0.42%
Loans 353,869 336,364 5.20%
Less allowance for loan losses 2,151 2,150 0.05%
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Net loans 351,718 334,214 5.24%
Total assets 539,546 519,204 3.92%
Total deposits 480,988 459,577 4.66%
Long-term debt 2,090 4,152 -49.66%
Total shareholders' equity 52,188 52,086 0.20%
Book value per share $15.83 $15.64 1.21%
Shares outstanding at period end 3,296,508 3,331,299
Selected Financial Ratios
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Return on average assets 1.23% 1.26% -2.38%
Return on average equity 12.55% 12.21% 2.78%
Equity to assets ratio 9.67% 10.03% -3.59%
Dividend payout ratio 58.39% 58.39% -%
Net interest margin (a) 3.99% 4.04% -1.24%
(a) tax-equivalent basis
Assets Under Management
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LCNB Corp. total assets $539,546 519,204 3.92%
Trust and investments (b) 195,583 174,037 12.38%
Mortgage loans serviced 47,593 47,705 -0.23%
Business cash management 26,322 30,014 -12.30%
Brokerage accounts (b) 34,072 21,052 61.85%
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Total assets managed $843,116 792,012 6.45%
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(b) at fair market value
