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Core Points - LCNB Corp. declared a cash dividend of $0.22 per common share, with a record date of December 1, 2025, and payment on December 15, 2025 [1] - LCNB Corp. is a financial holding company based in Lebanon, Ohio, operating through its subsidiary, LCNB National Bank, serving various counties in Southwest and South-Central Ohio [2] - The company reported financial results for the three and nine months ended September 30, 2025, highlighting the strength of its business model and disciplined execution of its long-term strategy [5] - LCNB Corp. announced the resignation of Robert A. Bedinghaus from its Board of Directors for personal reasons, with no disagreements related to the company's operations [6] - The company reinforced its leadership team through several promotions as part of its succession plan to support long-term strategic growth [7]

Financial Performance - Net income for the three months ended September 30, 2025, was $6,936 thousand, up from $4,532 thousand in the same period of 2024, indicating a year-over-year increase of approximately 53.1%[13]. - Net income for the nine months ended September 30, 2025, was $17,464,000, compared to $7,372,000 for the same period in 2024, representing a 137% increase[23]. - Basic earnings per common share for the three months ended September 30, 2025, was $0.49, up from $0.31 in 2024, reflecting a 58.1% increase[118]. - Total comprehensive income for the three months ended September 30, 2025, was $9,246 thousand, compared to $11,601 thousand in the same period of 2024, a decrease of about 20.3%[16]. - Net income for the three months ended September 30, 2025, was $6.9 million, an increase from $4.5 million in the same period of 2024, representing a 53.3% growth[152]. Income and Expenses - Net interest income increased to $18,126 thousand for the three months ended September 30, 2025, compared to $14,970 thousand for the same period in 2024, reflecting a growth of about 21.5%[13]. - Non-interest income for the three months ended September 30, 2025, was $5,704 thousand, down from $6,407 thousand in the same period of 2024, a decline of approximately 10.9%[13]. - Non-interest expense for the nine months ended September 30, 2025, was $46.5 million, a decrease from $48.7 million in 2024, reflecting a reduction of 4.5%[156]. - Total non-interest income for the nine months ended September 30, 2025, was $16.2 million, an increase of $1.8 million from $14.4 million in 2024[183]. - Total non-interest expense for the three months ended September 30, 2025, was $15,145,000, a decrease of 1.57% compared to $15,387,000 in 2024[186]. Assets and Liabilities - Total assets decreased to $2,244,365 thousand as of September 30, 2025, from $2,307,394 thousand at December 31, 2024, representing a decline of approximately 2.73%[10]. - Total deposits decreased to $1,849,082 thousand as of September 30, 2025, from $1,878,292 thousand at December 31, 2024, a reduction of about 1.55%[10]. - Long-term debt as of September 30, 2025, totaled $104,717 thousand, with a weighted average interest rate of 4.98%[92]. - Long-term debt decreased by $50,436,000, or 32.51%, to $104,717,000 due to early payoff of advances[191]. - The total balance of loans at the end of the period was $1,059,000 for commercial and industrial loans, $6,495,000 for commercial real estate loans, and $4,371,000 for residential real estate loans[60]. Credit Quality and Losses - The provision for credit losses was $211 thousand for the three months ended September 30, 2025, compared to $660 thousand for the same period in 2024, showing a decrease of about 68%[13]. - The allowance for credit losses (ACL) was $12.17 million as of September 30, 2025, compared to $12.00 million at December 31, 2024, indicating a slight increase in provisions[52]. - The ratio of non-accrual loans to total loans outstanding improved to 0.11% as of September 30, 2025, down from 0.26% at December 31, 2024[55]. - The company reported gross charge-offs of $110 thousand for commercial real estate loans and $55 thousand for residential real estate loans for the nine months ended September 30, 2025[76]. - The provision for credit losses for the three months ended September 30, 2025, was a recovery of $231,000, while for the nine months ended, it was a recovery of $456,000[60]. Shareholders' Equity - Total shareholders' equity increased to $269,870 thousand as of September 30, 2025, from $253,036 thousand at December 31, 2024, representing a growth of approximately 6.7%[10]. - The total shareholders' equity increased from $263,474,000 on July 1, 2025, to $269,870,000 on September 30, 2025[19]. - As of September 30, 2025, LCNB's shareholders' equity increased to $274.235 million from $259.811 million as of December 31, 2024, reflecting a growth of approximately 5.5%[204]. - The Common Equity Tier 1 Capital to risk-weighted assets ratio improved to 10.94% in September 2025, up from 9.94% in December 2024[204]. - Total risk-based capital increased to $199.255 million in September 2025, compared to $190.526 million in December 2024, representing a growth of about 4.3%[204]. Acquisitions and Investments - LCNB acquired Eagle Financial Bancorp, Inc. on April 12, 2024, enhancing its presence in the Cincinnati market[35]. - The total consideration transferred for the EFBI acquisition was $22.36 million, with cash consideration of $10.173 million and common stock valued at $12.187 million[38]. - The identifiable net assets acquired from EFBI amounted to $12.083 million, resulting in goodwill of $10.277 million[38]. - The company reported a net decrease in loans of $45,189,000 for the nine months ended September 30, 2025[23]. - The amortized cost of debt securities at September 30, 2025, was $257.564 million, with a fair value of $243.105 million[42]. Tax and Regulatory Matters - The effective tax rate for the three months ended September 30, 2025, was 18.2%, compared to 15.0% for the same period in 2024[98]. - LCNB's management believes it has adequate liquidity to meet both short-term and long-term funding needs without operational issues[207]. - The bank and LCNB were categorized as "well-capitalized" under the regulatory framework, indicating strong capital adequacy[202]. - LCNB plans to withdraw from its defined benefit retirement plan by the end of December 2025, with annuity purchases for active employees occurring in Q1 2026[108]. - The company engages third-party specialists to assist in developing fair value estimates for acquired assets and liabilities, ensuring compliance with accounting standards[141].

Core Viewpoint - LCNB has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Company Performance and Outlook - The upgrade reflects an improvement in LCNB's underlying business, suggesting that investors may respond positively by driving the stock price higher [5]. - LCNB is expected to earn $1.69 per share for the fiscal year ending December 2025, with a 6.3% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - LCNB's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

It has been several years since I last discussed LCNB Corp. (NASDAQ: LCNB ). The bank recently reported strong results for the third quarter of this year, in combination with a low amount of non-performing loans. It is nowHe is the leader of the investment group European Small Cap Ideas which offers exclusive access to actionable research on appealing Europe-focused investment opportunities not found elsewhere. The a focus is on high-quality ideas in the small-cap space, with emphasis on capital gains and d ...

Core Insights - LCNB Corp. has reported strong results for the third quarter of the year, highlighting a low amount of non-performing loans [1] Group 1: Financial Performance - The bank's recent performance indicates robust financial health, with strong quarterly results [1] - The low level of non-performing loans suggests effective risk management and credit quality [1] Group 2: Investment Considerations - There is a potential interest in initiating a long position in LCNB, although this is unlikely to occur in the immediate future [2]

LCNB (LCNB) came out with quarterly earnings of $0.49 per share, beating the Zacks Consensus Estimate of $0.42 per share. This compares to earnings of $0.31 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +16.67%. A quarter ago, it was expected that this holding company for LCNB National Bank would post earnings of $0.37 per share when it actually produced earnings of $0.41, delivering a surprise of +10.81%.Over the last four ...

Core Insights - LCNB Corp. reported financial results for the three and nine months ended September 30, 2025, highlighting the effectiveness of its business model and long-term strategy [1] Financial Performance - The company experienced benefits from disciplined execution of its long-term strategy and optimization of recent acquisitions [1] - LCNB decreased higher cost certificates during the third quarter, contributing positively to its financial results [1]

[Financial Highlights Overview](index=1&type=section&id=Financial%20Highlights) This section provides an overview of LCNB Corp.'s financial performance, including income statement highlights, per share data, and key financial ratios, demonstrating significant profitability improvements [Condensed Income Statement Overview](index=1&type=section&id=Condensed%20Income%20Statement) LCNB Corp. achieved significant net income growth in Q3 2025 and the first nine months, driven by increased net interest income and reduced provision for credit losses, strengthening overall profitability | Metric (in thousands of USD) | September 30, 2025 (Q3) | September 30, 2024 (Q3) | Change (YoY) | September 30, 2025 (YTD) | September 30, 2024 (YTD) | Change (YoY) | | :--------------------------- | :---------------------- | :---------------------- | :----------- | :----------------------- | :----------------------- | :----------- | | **Net Income** | 6,936 | 4,532 | +53.08% | 17,464 | 7,372 | +136.89% | | **Net Interest Income** | 18,126 | 14,970 | +21.08% | 51,966 | 44,082 | +17.89% | | **Provision for Credit Losses** | 211 | 660 | -68.03% | 426 | 1,313 | -67.55% | | **Non-Interest Income** | 5,704 | 6,407 | -11.00% | 16,174 | 14,416 | +12.19% | | **Non-Interest Expense** | 15,145 | 15,387 | -1.57% | 46,521 | 48,684 | -4.44% | | **Income Before Income Taxes** | 8,474 | 5,330 | +59.00% | 21,193 | 8,501 | +149.30% | [Supplemental Income Statement Information](index=1&type=section&id=Supplemental%20Income%20Statement%20Information) Supplemental data shows growth in tax-equivalent net interest income and pre-provision, pre-tax net income for Q3 2025 and the first nine months, reflecting enhanced core profitability | Metric (in thousands of USD) | September 30, 2025 (Q3) | September 30, 2024 (Q3) | Change (YoY) | September 30, 2025 (YTD) | September 30, 2024 (YTD) | Change (YTD) | | :--------------------------- | :---------------------- | :---------------------- | :----------- | :----------------------- | :----------------------- | :----------- | | **Acquired Loan Mark-to-Market Income** | 904 | 800 | +13.00% | 2,770 | 2,824 | -1.91% | | **Tax-Equivalent Net Interest Income** | 18,169 | 15,013 | +21.02% | 52,090 | 44,202 | +17.84% | | **Pre-Provision, Pre-Tax Net Income** | 8,685 | 5,990 | +44.99% | 21,619 | 9,814 | +120.29% | [Per Share Data](index=1&type=section&id=Per%20Share%20Data) The company achieved substantial growth in earnings per share for Q3 2025 and the first nine months, with steady increases in book value per share and tangible book value per share, indicating enhanced shareholder value | Metric | September 30, 2025 (Q3) | September 30, 2024 (Q3) | Change (YoY) | September 30, 2025 (YTD) | September 30, 2024 (YTD) | Change (YoY) | | :--------------------------- | :---------------------- | :---------------------- | :----------- | :----------------------- | :----------------------- | :----------- | | **Dividends Per Share** | $0.22 | $0.22 | 0.00% | $0.66 | $0.66 | 0.00% | | **Basic Earnings Per Share** | $0.49 | $0.31 | +58.06% | $1.23 | $0.53 | +132.08% | | **Diluted Earnings Per Share** | $0.49 | $0.31 | +58.06% | $1.23 | $0.53 | +132.08% | | **Book Value Per Share** | $19.02 | $17.95 | +5.96% | $19.02 | $17.95 | +5.96% | | **Tangible Book Value Per Share** | $12.15 | $10.97 | +10.76% | $12.15 | $10.97 | +10.76% | [Selected Financial Ratios](index=1&type=section&id=Selected%20Financial%20Ratios) The company demonstrated significant improvements in profitability and efficiency ratios for Q3 2025 and the first nine months, with growth in net interest margin and average tangible common equity return | Metric | September 30, 2025 (Q3) | September 30, 2024 (Q3) | Change (YoY) | September 30, 2025 (YTD) | September 30, 2024 (YTD) | Change (YoY) | | :--------------------------- | :---------------------- | :---------------------- | :----------- | :----------------------- | :----------------------- | :----------- | | **Return on Average Assets (ROAA)** | 1.21% | 0.81% | +0.40 pp | 1.02% | 0.42% | +0.60 pp | | **Return on Average Equity (ROAE)** | 10.33% | 7.33% | +3.00 pp | 9.60% | 4.06% | +5.54 pp | | **Return on Average Tangible Common Equity** | 16.29% | 12.27% | +4.02 pp | 14.32% | 6.70% | +7.62 pp | | **Dividend Payout Ratio** | 44.90% | 70.97% | -26.07 pp | 53.66% | 124.53% | -70.87 pp | | **Net Interest Margin (Tax-Equivalent)** | 3.57% | 2.84% | +0.73 pp | 3.43% | 2.81% | +0.62 pp | | **Efficiency Ratio (Tax-Equivalent)** | 63.44% | 71.83% | -8.39 pp | 68.15% | 83.05% | -14.90 pp | [Balance Sheet and Asset Quality](index=2&type=section&id=Balance%20Sheet%20and%20Asset%20Quality) This section details LCNB Corp.'s balance sheet composition and asset quality metrics, highlighting changes in assets, liabilities, equity, and credit loss provisions [Selected Balance Sheet Items at Period End](index=2&type=section&id=Selected%20Balance%20Sheet%20Items) As of September 30, 2025, the company's total assets and total deposits slightly decreased, while shareholders' equity and tangible common equity increased, indicating a strengthened capital base | Metric (in thousands of USD) | September 30, 2025 | December 31, 2024 | Change | | :--------------------------- | :----------------- | :---------------- | :----- | | **Total Assets** | 2,244,365 | 2,307,394 | -2.73% | | **Total Deposits** | 1,849,082 | 1,878,292 | -1.55% | | **Total Shareholders' Equity** | 269,870 | 253,036 | +6.61% | | **Net Loans** | 1,666,858 | 1,709,811 | -2.51% | | **Tangible Common Equity** | 172,399 | 154,721 | +11.42%| [Selected Average Balance Sheet Items](index=3&type=section&id=Selected%20Average%20Balance%20Sheet%20Items) In Q3 2025, average total assets and average total deposits both decreased, with average net loans also showing a slight reduction | Metric (in thousands of USD) | September 30, 2025 (Q3) | September 30, 2024 (Q3) | Change (YoY) | | :--------------------------- | :---------------------- | :---------------------- | :----------- | | **Average Total Assets** | 2,276,906 | 2,365,676 | -3.75% | | **Average Total Deposits** | 1,884,748 | 1,936,601 | -2.70% | | **Average Net Loans** | 1,694,182 | 1,759,049 | -3.79% | [Allowance for Credit Losses on Loans](index=3&type=section&id=Allowance%20for%20Credit%20Losses%20on%20Loans) In Q3 2025, the allowance for credit losses on loans slightly increased, primarily due to the provision for credit losses exceeding charge-offs | Metric (in thousands of USD) | September 30, 2025 (Q3) | June 30, 2025 (Q2) | March 31, 2025 (Q1) | December 31, 2024 (Q4) | September 30, 2024 (Q3) | | :--------------------------- | :---------------------- | :----------------- | :------------------ | :------------------- | :---------------------- | | **Allowance for Credit Losses at Period End** | 12,170 | 12,108 | 12,124 | 12,001 | 11,867 | | **Provision for Credit Losses on Loans** | 231 | 63 | 162 | 728 | 681 | | **Charge-offs** | (193) | (95) | (53) | (616) | (122) | | **Recoveries** | 24 | 16 | 14 | 22 | 38 | [Asset Quality Metrics](index=4&type=section&id=Asset%20Quality) The company's asset quality improved in Q3 2025, with non-performing loans and non-performing assets as a percentage of total loans/total assets both decreasing | Metric | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | | :------------------------------------ | :----------------- | :------------- | :------------- | :---------------- | :----------------- | | **Nonaccrual Loans (in thousands of USD)** | 1,793 | 4,500 | 4,710 | 4,528 | 3,001 | | **Loans 90 Days or More Past Due and Still Accruing (in thousands of USD)** | 1,956 | 4,771 | 4,891 | 4,618 | 3,284 | | **Total Non-Performing Loans (in thousands of USD)** | 3,749 | 9,271 | 9,601 | 9,146 | 6,285 | | **Average Net Charge-offs to Loans** | 0.04% | 0.02% | 0.01% | 0.14% | 0.02% | | **Allowance for Credit Losses to Total Loans** | 0.72% | 0.71% | 0.71% | 0.70% | 0.69% | | **Non-Performing Loans to Total Loans** | 0.12% | 0.28% | 0.28% | 0.27% | 0.19% | | **Non-Performing Assets to Total Assets** | 0.09% | 0.21% | 0.21% | 0.20% | 0.14% | [Assets Under Management](index=5&type=section&id=Assets%20Under%20Management) As of September 30, 2025, LCNB Corp.'s total assets under management slightly decreased, but trust and investment assets and investment services assets both increased | Metric (in thousands of USD) | September 30, 2025 | September 30, 2024 | Change (YoY) | | :--------------------------- | :----------------- | :----------------- | :----------- | | **LCNB Corp. Total Assets** | 2,244,365 | 2,346,908 | -4.37% | | **Trust and Investments (Fair Value)** | 1,041,270 | 933,341 | +11.57% | | **Mortgage Servicing** | 341,548 | 366,175 | -6.73% | | **Cash Management** | 73,002 | 165,218 | -55.81% | | **Investment Services (Fair Value)** | 494,947 | 435,611 | +13.62% | | **Total Assets Under Management** | 4,195,132 | 4,247,253 | -1.23% | [Detailed Net Interest Income Analysis](index=6&type=section&id=Detailed%20Net%20Interest%20Income%20Analysis) This section provides a detailed analysis of LCNB Corp.'s net interest income, net interest margin, and net interest spread for both quarterly and year-to-date periods [Three Months Ended September 30, 2025](index=6&type=section&id=Three%20Months%20Ended%20September%2030%2C%202025) In Q3 2025, the company's net interest margin and net interest spread improved compared to both the prior year and previous quarter, driven by higher earning asset yields and effective management of interest-bearing liability costs | Metric | September 30, 2025 (Q3) | September 30, 2024 (Q3) | Change (YoY) | June 30, 2025 (Q2) | Change (QoQ) | | :------------------------------------ | :---------------------- | :---------------------- | :----------- | :----------------- | :----------- | | **Average Yield on Loans** | 5.62% | 5.47% | +0.15 pp | 5.56% | +0.06 pp | | **Average Yield on Total Earning Assets** | 5.18% | 5.01% | +0.17 pp | 5.13% | +0.05 pp | | **Average Cost of Interest-Bearing Deposits** | 1.67% (Demand) | 2.04% (Demand) | -0.37 pp | 1.58% (Demand) | +0.09 pp | | **Average Cost of Total Interest-Bearing Liabilities** | 2.13% | 2.76% | -0.63 pp | 2.19% | -0.06 pp | | **Net Interest Spread** | 3.05% | 2.25% | +0.80 pp | 2.94% | +0.11 pp | | **Net Interest Margin (Tax-Equivalent)** | 3.57% | 2.84% | +0.73 pp | 3.47% | +0.10 pp | [Nine Months Ended September 30, 2025](index=8&type=section&id=Nine%20Months%20Ended%20September%2030%2C%202025) For the first nine months of 2025, the company's net interest margin and net interest spread improved compared to the prior year, reflecting a positive trend in full-year core profitability | Metric | September 30, 2025 (YTD) | September 30, 2024 (YTD) | Change (YoY) | | :------------------------------------ | :----------------------- | :----------------------- | :----------- | | **Average Yield on Loans** | 5.55% | 5.42% | +0.13 pp | | **Average Yield on Total Earning Assets** | 5.12% | 4.98% | +0.14 pp | | **Average Cost of Interest-Bearing Deposits** | 1.64% (Demand) | 2.24% (Demand) | -0.60 pp | | **Average Cost of Total Interest-Bearing Liabilities** | 2.22% | 2.76% | -0.54 pp | | **Net Interest Spread** | 2.90% | 2.22% | +0.68 pp | | **Net Interest Margin (Tax-Equivalent)** | 3.43% | 2.81% | +0.62 pp | [Consolidated Financial Statements](index=9&type=section&id=Consolidated%20Financial%20Statements) This section presents LCNB Corp.'s consolidated condensed balance sheets and statements of income, offering a comprehensive view of the company's financial position and performance [Consolidated Condensed Balance Sheets](index=9&type=section&id=CONSOLIDATED%20CONDENSED%20BALANCE%20SHEETS) As of September 30, 2025, the company's total assets and total liabilities decreased compared to December 31, 2024, while shareholders' equity increased, reflecting an optimized capital structure | Metric (in thousands of USD) | September 30, 2025 | December 31, 2024 | Change | | :--------------------------- | :----------------- | :---------------- | :----- | | **Total Assets** | 2,244,365 | 2,307,394 | -2.73% | | **Total Liabilities** | 1,974,495 | 2,054,358 | -3.90% | | **Total Shareholders' Equity** | 269,870 | 253,036 | +6.61% | | **Net Loans** | 1,666,858 | 1,709,811 | -2.51% | | **Total Deposits** | 1,849,082 | 1,878,292 | -1.55% | | **Long-Term Debt** | 104,717 | 155,153 | -32.51%| [Consolidated Condensed Statements of Income](index=10&type=section&id=CONSOLIDATED%20CONDENSED%20STATEMENTS%20OF%20INCOME) For Q3 2025 and the first nine months, the company achieved significant growth in net income and net interest income, primarily due to reduced interest expense and lower provision for credit losses | Metric (in thousands of USD) | September 30, 2025 (Q3) | September 30, 2024 (Q3) | Change (YoY) | September 30, 2025 (YTD) | September 30, 2024 (YTD) | Change (YoY) | | :--------------------------- | :---------------------- | :---------------------- | :----------- | :----------------------- | :----------------------- | :----------- | | **Total Interest Income** | 26,305 | 26,398 | -0.35% | 77,560 | 78,121 | -0.72% | | **Total Interest Expense** | 8,179 | 11,428 | -28.33% | 25,594 | 34,039 | -24.81% | | **Net Interest Income** | 18,126 | 14,970 | +21.08% | 51,966 | 44,082 | +17.89% | | **Provision for Credit Losses** | 211 | 660 | -68.03% | 426 | 1,313 | -67.55% | | **Total Non-Interest Income** | 5,704 | 6,407 | -11.00% | 16,174 | 14,416 | +12.19% | | **Total Non-Interest Expense** | 15,145 | 15,387 | -1.57% | 46,521 | 48,684 | -4.44% | | **Net Income** | 6,936 | 4,532 | +53.08% | 17,464 | 7,372 | +136.89% | | **Basic Earnings Per Share** | 0.49 | 0.31 | +58.06% | 1.23 | 0.53 | +132.08% |

Core Viewpoint - LCNB Corp. has announced leadership promotions as part of its succession plan, aimed at enhancing management depth and supporting long-term strategic growth [1] Group 1: Leadership Changes - The company is implementing several leadership promotions to strengthen its management structure [1] - These changes are part of a comprehensive succession plan that reflects the company's commitment to growth [1] Group 2: Strategic Growth - The leadership enhancements are designed to support a larger and more complex business environment [1] - The moves indicate the success of LCNB's multi-year growth plan, as evidenced by an increase in total assets managed [1]