Hello, welcome to the 2021 annual meeting of stockholders of LCNB Corp. Please note that today's meeting is being recorded. It is now my pleasure to turn today's meeting over to Spencer Cropper, Chairman of the Board of Directors for LCNB Corp. The floor is yours.
Thank you. Good morning, ladies and gentlemen. I'm Spencer Cropper, and I'm the Chairman of the Board of Directors for LCNB National Bank and LCNB Corp. It's my pleasure to welcome all of you to the LCNB 2021 annual meeting of shareholders. We appreciate your willingness to attend today's virtual annual meeting of shareholders. When we come to the Q&A portion, we will give shareholders the opportunity to ask a question. Questions can be submitted online at any time by clicking the dialogue icon in the upper right corner of the meeting center screen. We will save all comments and questions for a Q&A session after the proposals have been presented. Please remember that you may vote your shares at any time before the polls close by clicking on the link provided in the virtual meeting center.
If you have already voted and do not want to change your vote, you do not need to take any further action. I'd now like to call to order the annual meeting of the shareholders of LCNB Corp. For the 2021 annual meeting, the Board of Directors has appointed Kathleen P. Staley and Bernard H. Wright Jr. to serve as inspectors of election in connection with the matters voted on at this meeting. The inspectors of election will supervise the conduct of the meeting at this meeting. At this time, I would like to introduce you to the members of the Board of Directors and executive officers of LCNB. All of them are participating today. First, the directors, Steve Foster, Eric Meilstrup, Steve Wilson, Bill Kaufman, Anne Krehbiel, Brett Huddle, Mike Durant, Mary Bradford, and Craig Johnson.
Executive officers participating today, Eric Meilstrup, Rob Haines, Matt Layer, Brad Ruppert, Mike Miller, and Mary Mulligan. Also joining us online today are guests, and they are Ben Howard and Brian Mitchell of BKD, the 2020 independent public accountant for LCNB, as well as Mike Dailey, Christian Gonzalez, and Eric Quinn, all of Dinsmore & Shohl, are legal counsel to LCNB. Eric Meilstrup will now read the certificate signed by him as the President and CEO of LCNB concerning the giving of notice of this meeting.
Thank you, Spence. I, Eric J. Meilstrup, President and Chief Executive Officer of LCNB Corp, do hereby certify that on or about March 15th, 2021, LCNB, acting on my instructions, did mail to each shareholder of record of LCNB as of close of business on March 1st, 2021, a notice of annual meeting by regular mail specifying the date, place, time, and purpose of the annual meeting of shareholders of LCNB, a proxy statement, and a form of proxy with respect thereto.
Okay. Thanks, Eric. Will any shareholders who have not previously submitted a proxy and any shareholders who have submitted a proxy but would like to revoke that proxy and vote online at this meeting, please click on the link provided in the virtual meeting center and do so now. The polls will close in two minutes. Our inspector of elections reports that shareholders entitled to cast more than 75.90% of the votes eligible to be cast at this meeting are present or represented by proxy. Therefore, a quorum is present at the meeting, and the meeting may proceed. The meeting will now consider three business items as described in our proxy statement. We will present each of the business items one at a time. Item one is the proposal to elect three class 1 directors to serve for a term of three years.
As indicated in the proxy statement, the Board of Directors recommends that the stockholders elect the director nominees. In light of John Kuchenbecker's retirement from the board, effective as of today's meeting, the Board of Directors has acted to reduce the number of directors from 11 to 10. The company's regulations divide the directors into three classes as equal in number as possible and set their terms at three years. We'd like to thank John for his eight years of service to the board. Eric and I will now give a brief background of the nominees and their experience. Each of the nominees are incumbent directors. The first nominee, Steve P. Wilson. Steven is a former chairman of LCNB Corp. and LCNB National Bank. He joined the LCNB staff in 1975 and the Board of Directors in 1982.
He previously served as Chief Executive Officer of LCNB and the bank from 1992 to 2015. He is the past chairman of the American Bankers Association and a former board member of the Federal Reserve Bank of Cleveland. Mr. Wilson has represented the Ohio Seventh District in the Ohio State Senate since 2017. He is a board member and treasurer of AAA Cincinnati, chairman of the board of Harmon Civic Trust, a trustee of the Ralph J. Stolle Countryside YMCA, board member of the Warren County Foundation, and a member of the Area Progress Council. He is also former vice chair of Warren County Port Authority and a former trustee at Miami University. He and his wife, Jill, are active members of the Otterbein United Methodist Church.
Through his extensive tenure on the board and as a former executive with the company, Mr. Wilson has developed unique insights into the business activities of LCNB and provides the board with information as to the operations of each, identifying near and long-term challenges and opportunities for the company. Mr. Wilson serves on the trust committee and the pension committee. Next, Eric J. Meilstrup is the president and chief executive officer of LCNB and LCNB National Bank. He joined the board in 2018 and serves on the pension committee. Mr. Meilstrup has been with LCNB National Bank for 32 years, the last 17 as executive vice president and a member of its executive team. He has served in a number of roles over his career, including oversight of deposit operations, branch operations, human resources, training, and a number of customer service-related departments.
He has also served on a number of boards, committees, and groups in a variety of capacities throughout his career outside of the bank. He is currently on the Countryside YMCA board and has been a board member there for several years, including two years as board chair. He also serves as a trustee of the Ralph J. Stolle Countryside YMCA. He is a board member of the Westside Church of Christ, a former member of the Warren County Career Center District Business Advisory Committee, and a current and charter member of the Lebanon Optimist Club.
The third nominee is Spencer S. Cropper. Spencer is chairman of LCNB Corp and LCNB National Bank. He joined the board in 2006 and was named chairman in 2019. He's employed by Stolle Properties Incorporated, a subsidiary of Ralph J. Stolle Company, and currently serves on the company's Board of Directors. Mr. Cropper is a certified public accountant, a member of The Ohio Society of Certified Public Accountants, and a member of the American Institute of Certified Public Accountants. He is an investor in and serves on the board of advisors of a private equity fund who primarily focuses on providing mezzanine financing. He serves on the Board of Directors at the Ralph J. Stolle Countryside YMCA, as well as the boards of trustees for the Ralph J. Stolle Countryside YMCA, the Warren County Foundation, and the Bethesda Foundation Incorporated.
Mr. Cropper brings to the board a relevant experience in accounting and financial matters. He serves on the Audit Committee, the Pension Committee, Compensation Committee, and the Nominating and Governance Committee.
Thank you, Eric. The inspectors of the election certify that with respect to the election of directors, a total of 5,910,403.37 votes were cast in favor of electing Steve P. Wilson to the Board of Directors. A total of 7,013,077.11 votes were cast in favor of electing Spencer S. Cropper to the Board of Directors, and a total of 6,063,647.11 votes were cast in favor of electing Eric J. Meilstrup to the Board of Directors. As such, I hereby declare that Steve P. Wilson, Spencer S. Cropper, and Eric J. Meilstrup have been duly elected to the Board of Directors of LCNB to serve in such positions until the 2024 annual meeting of shareholders.
Item number two is an advisory proposal to approve the compensation of our named executive officers as disclosed in the proxy statement. As indicated in the proxy statement, the Board of Directors recommends that shareholders vote in favor of this proposal. A total of 6,417,978.57 votes were cast in favor of the approval of the compensation of our named executive officers. A total of 296,838.46 votes were cast against the approval of the compensation of our named executive officers. The compensation committee and the board will take the outcome of this vote into account when considering future executive compensation arrangements. Lastly, item number three is a proposal to ratify the appointment of BKD, LLP as LCNB's independent registered accounting firm.
As indicated in the proxy statement, the Board of Directors recommends that shareholders vote in favor of this proposal. A total of 9,661,585.54 votes were cast in favor of ratification of the appointment of BKD, LLP as the independent registered accounting firm for LCNB. A total of 4,630.59 votes were cast against the ratification of the appointment of BKD, LLP as the independent registered accounting firm for LCNB. As such, I hereby declare that the appointment of BKD, LLP as the independent registered accounting firm for LCNB has been ratified. That concludes the report of preliminary voting. Details of the final results will be available for all shareholders in our filings with the SEC within four business days.
We will hear from Eric Meilstrup, LCNB's President and Chief Executive Officer, with a report to shareholders on LCNB's performance in 2020, as well as our plans for 2021.
Thank you, Spencer. I want to thank all of you who are participating in today's annual meeting and for your continued interest in LCNB. At this time last year, the emerging COVID-19 pandemic was causing widespread uncertainty. It was hard to imagine what was going to occur throughout 2020 as a result of the unprecedented nature of the crisis. As a management team and company, not much changed. We remained focused on supporting our associates, customers, and communities throughout 2020 and the COVID-19 pandemic, just like we have for over 140 years. I am proud of LCNB's accomplishments and record financial results over the past year. Our ability to navigate the challenges presented by the COVID-19 pandemic while serving our local communities is a direct result of our experienced management team, the dedication of our associates, and our successful business model.
We entered 2020 with strong capital levels and a legacy of resilient asset quality, which provides LCNB with the flexibility to respond to the challenges associated with the pandemic. Most importantly, this past year demonstrated the dedication of our staff, and I want to use this opportunity to say thank you to everyone at LCNB for their continued hard work and commitment. Let me start today's presentation by highlighting some of our record financial results. For 2020, annual diluted earnings per share increased 7.6% YoY to a record of $1.55. Fiduciary income increased to a record as a result of a 44.2 increase in trust and investment assets, while total assets managed increased 16.3% to a record $2.9 billion. During 2020, we assisted 316 small businesses in keeping their associates employed when we participated in the Paycheck Protection Program.
While PPP assisted in growing our portfolio to a record $1.3 billion in loans, we are simply proud that we were able to assist others when the need was there. Our deposits increased to $107 million, also assisted not only by the PPP program, but because trends in savings were boosted during the pandemic. We ended 2020 at a record $1.5 billion in deposits. Importantly, we were able to prudently manage risk throughout 2020, demonstrating that consistent, sound portfolio management prior to the pandemic was in place. Charge-offs were $331,000, or 0.03% of average loans, compared to $207,000, or 0.02% of average loans for the same period last year. During the early quarters of the pandemic, we eased customer fears by allowing payment deferrals if customers needed them. Customer deferrals totaled 600 at the high point, but by the end of 2020, only 10 customers with $20.6 million remain deferred.
In addition, despite the impact of COVID-19 pandemic, non-performing loans to total assets were 0.21% over the past two years, reflecting continued consistency in loan performance. From an operational standpoint, it is critical for us to continually invest in our business. Therefore, we are focused on expanding LCNB's digital service and marketing efforts while optimizing the bank's physical branch presence. Providing an excellent experience for our customers has always been a priority for LCNB. During the past year, we refreshed our entire ATM network, enhanced branch systems and processes, and launched a new online platform that supports enhanced digital account opening and lending applications. All investments were made with the goal of improving the customer experience and our operating efficiencies.
I also would like to acknowledge the extraordinary efforts of our IT team getting us up and running in a safe and secure digital environment that allowed for, at times, over 190 employees to work remotely. We remain focused on building upon 2020's accomplishments by continuing to offer our communities leading and diversified financial services, maintaining strong asset quality, managing both our cost of funds and non-interest expense, and increasing non-interest income. We believe we have a proven platform to drive sustainable growth and create long-term value for our shareholders. Demonstrating our optimism in the future and our commitment to creating value for shareholders, we increased our cash dividend payment by 5.6% during the 2020 fourth quarter. LCNB has a long history of paying dividends and returning capital to shareholders, even maintaining our quarterly dividend throughout the 2007 to 2009 global financial crisis.
Our fourth quarter dividend payment represents the third consecutive annual increase in our dividend payment, and we are focused on supporting shareholders through our growing dividend policy. Yesterday, we filed our first quarter earnings release, demonstrating continued improvements in our financial and operating performance. Our wealth team continued to contribute to both growth and non-interest income. We hit the $3 billion mark for assets under management when you combine bank assets and the wealth assets. Also, our asset quality remains strong. Finally, I want to thank John Kochensparger for his service to LCNB. As a director, John has provided a significant amount of value to our board and to the bank over the past eight years. He is more than just a board member. He is and always will be a part of the LCNB family.
On behalf of everyone at the bank and my fellow board members, I want to thank John for his contributions to LCNB and wish him well in retirement. To conclude my prepared remarks before we open the meeting to questions, I am extremely proud of our performance during 2020 and excited by the opportunities we have in 2021 and beyond. I would like, once again, to thank everyone at LCNB for their continued hard work and dedication. We will now address any questions that we have submitted by shareholders, so if you could just give me a second to see if there are any. Spence, it looks like there are no questions at this particular time, so I'll turn it back over to you.
Okay. Thank you, Eric. Thank you for the comments as well. That completes the business schedule for today's meeting. We'd like to thank all of you for joining us online. Have a great day, and we look forward to seeing you all soon. Our meeting is now officially concluded.
This concludes the meeting. You may now disconnect.