LCNB (US:LCNB)2020-08-05 22:21Financial Performance - Net income for the three months ended June 30, 2020, was $5,057 thousand, compared to $4,728 thousand for the same period in 2019, reflecting an increase of 6.9%[13] - Net income for the six months ended June 30, 2020, was $10,083,000, a 7.8% increase from $9,355,000 in the same period of 2019[21] - Earnings per common share for the three months ended June 30, 2020, were $0.39, up from $0.36 in the same period of 2019, representing an increase of 8.3%[13] - Total comprehensive income for the three months ended June 30, 2020, was $5,769 thousand, down from $6,905 thousand in the same period of 2019, reflecting a decrease of 16.4%[15] - Net income for Q2 2020 was $5,057,000, an increase of 6.9% from $4,728,000 in Q2 2019, with earnings per share rising from $0.36 to $0.39[179] Asset Growth - Total assets increased to $1,735,332 thousand as of June 30, 2020, up from $1,639,308 thousand at December 31, 2019, representing a growth of approximately 5.9%[9] - Total assets as of June 30, 2020, were $1,704,303,000, up from $1,637,645,000 a year earlier[182] - Total shareholders' equity increased to $237,047 thousand as of June 30, 2020, compared to $228,048 thousand at December 31, 2019, reflecting a growth of 3.9%[9] Deposits and Cash Flow - Total deposits rose to $1,438,921 thousand as of June 30, 2020, up from $1,348,280 thousand at December 31, 2019, marking an increase of 6.7%[9] - Cash and cash equivalents at the end of the period on June 30, 2020, were $42,736,000, compared to $23,185,000 at the end of June 30, 2019, indicating an increase of 84.5%[21] - Total cash flows provided by operating activities for the six months ended June 30, 2020, were $4,931,000, compared to $8,250,000 in 2019, reflecting a decrease of 40.5%[21] Loan Portfolio and Quality - The total gross loans as of June 30, 2020, amounted to $1,337,340,000, an increase from $1,243,726,000 as of December 31, 2019, representing a growth of approximately 7.5%[46] - The allowance for loan losses at the end of June 2020 was $5,016,000, compared to $4,045,000 at the end of December 2019, indicating an increase of 24%[49] - The total number of loans categorized as "Substandard" increased to $21,912,000 in June 2020 from $17,256,000 in December 2019, reflecting a rise of 27.5%[63] - The company reported a provision for loan losses of $1,189,000 for the six months ended June 30, 2020, compared to a credit of $(51,000) in 2019[21] Interest Income and Expense - Net interest income for the six months ended June 30, 2020, was $28,176 thousand, compared to $26,981 thousand for the same period in 2019, indicating a growth of 4.4%[13] - Total interest income decreased by $414,000 in Q2 2020, primarily due to a $472,000 decrease in interest income from taxable and non-taxable debt securities[188] - Total interest expense decreased by $779,000 in Q2 2020, driven by a $294,000 decrease in savings deposits and a $438,000 decrease in IRA and time certificates[189] Non-Interest Income and Expense - Non-interest income for the three months ended June 30, 2020, totaled $3,319 thousand, an increase from $2,998 thousand in the same period of 2019, representing a rise of 10.7%[13] - Non-interest income for the six months ended June 30, 2020, increased by $1,388,000 to $7,158,000, driven by growth in fiduciary income and bank-owned life insurance income[203] - Total non-interest expense for the six months ended June 30, 2020, was $22,188,000, an increase of $655,000 compared to the same period in 2019[207] COVID-19 Impact and Response - LCNB provided payment deferrals to 582 loan customers totaling approximately $384 million affected by COVID-19[174] - The company assisted 316 small businesses with $45.5 million in loans through the CARES Act Paycheck Protection Program[174] - LCNB's financial condition and results are subject to risks from the COVID-19 pandemic, including potential increased loan charge-offs[168] Tax and Regulatory Matters - The effective tax rate for the three months ended June 30, 2020, was 18.2%, compared to 17.1% for the same period in 2019, indicating an increase of approximately 6.4%[97] - The company recognized tax credits and other tax benefits of $538,000 for the six months ended June 30, 2020, compared to $168,000 for the same period in 2019, marking a significant increase of approximately 219%[90] Equity and Stock Options - The company declared dividends of $0.18 per common share for the three months ended June 30, 2020, compared to $0.17 for the same period in 2019[13] - The intrinsic value of options exercised in the six months ended June 30, 2020, was $46,000, with cash received from options exercised totaling $115,000[121] - The company had 311,000 outstanding stock options with a weighted average exercise price of $12.60 as of June 30, 2020[118]