Message #9 From:
NewsBot Date: October 17, 2006 12:39:00 PM
LCNB News LCNB Corp. Reports Financial Results for the Nine Months Ended September 30, 2006
LEBANON, Ohio--(BUSINESS WIRE)--LCNB Corp. (OTCBB:LCNB) today announced its financial results for the
nine months ended September 30, 2006. These results included growth in
total loans of $34.5 million, from $353.9 million at September 30, 2005
to $388.4 million at September 30, 2006. The loan growth was primarily
due to growth in the commercial loan portfolio and secondarily to growth
in the residential real estate mortgage loan portfolio.
The loan growth was funded through a combination of a $12.2 million
increase in total deposits and a $26.4 million decrease in investment
securities. The deposit growth was primarily due to increases in
deposits by local and state governmental entities.
Assets under management include LCNB’s total
assets, the trust and brokerage businesses, mortgage loans serviced for
others, and business cash management accounts. Total assets under
management grew $37.9 million, from $843.1 million at September 30, 2005
to $881.0 million at September 30, 2006. In addition to a $10.5 million
increase in LCNB’s total assets from the loan
growth discussed above, trust assets grew by $8.1 million, business cash
management assets grew by $8.4 million, and assets managed in brokerage
accounts grew by $14.8 million. Brokerage accounts are offered through a
partnership with UVEST Financial Services, Inc.
Net income for the nine months ended September 30, 2006 was $4.72
million, or $1.45 diluted earnings per share, compared to $4.92 million,
or $1.48 diluted earnings per share, for the same period in 2005. Return
on average assets for the nine months ended September 30, 2006 and 2005
was 1.16% and 1.23%, respectively. Return on average equity for the 2006
period was 12.09%, compared to 12.55% for the 2005 period.
Net interest income for the nine months ended September 30, 2006 was
$168,000 less than for the same period in 2005 primarily due to a
decrease in the tax equivalent net interest margin from 3.99% at
September 30, 2005 to 3.85% at September 30, 2006. A flat yield curve,
meaning that long-term market rates are not significantly above
short-term rates, continued to put pressure on the margin. Also
contributing to the decline in net income from 2005 to 2006 was a
$491,000 increase in non-interest expense primarily resulting from
increased salaries and benefits expense. Partially offsetting these
decreases in net income were a $162,000 decrease in the provision for
loan losses due to improvements in credit quality and a $256,000
increase in non-interest income. The increase in non-interest income was
primarily due to a $186,000 increase in trust and brokerage income, a
$175,000 increase in insurance agency income, and a $79,000 increase in
service charges on deposit accounts, partially offset by smaller
decreases in several other income classifications.
LCNB Corp. is a financial holding company headquartered in Lebanon,
Ohio. Affiliates of LCNB Corp. are Lebanon Citizens National Bank, with
21 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 intends such
forward-looking statements to be covered by the safe harbor provisions
for forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995.
