Financial Performance - Net income for the three and nine months ended September 30, 2024, was $4,532,000 and $7,372,000, respectively, compared to $4,070,000 and $12,921,000 for the same periods in 2023[187]. - Non-interest income for the three and nine months ended September 30, 2024, was $6,407,000 and $14,416,000, respectively, up from $3,578,000 and $10,805,000 in 2023, driven by higher fiduciary income and service charges[190]. - Non-interest expense for the three and nine months ended September 30, 2024, was $15,387,000 and $48,684,000, respectively, compared to $12,244,000 and $36,847,000 in 2023, primarily due to increased personnel and office expenses from acquisitions[191]. - A pretax loss of $843,000 was recorded on the sale of approximately $48.9 million of below market rate loans acquired from Cincinnati Bancorp during the second quarter[190]. Interest Income and Expense - Net interest income for the three and nine months ended September 30, 2024, was $14,970,000 and $44,082,000, respectively, an increase from $13,571,000 and $41,690,000 in 2023, primarily due to higher average loan balances and increased rates[188]. - Total interest income increased by $6,727,000, primarily due to a $6,467,000 increase in loan interest income attributed to a $319.2 million increase in average loan balances[197]. - Total interest expense rose by $5,331,000, driven by a $708,000 increase in interest expense for interest-bearing demand and money market deposits[198]. - Interest expense for IRA and time certificates increased by $4,299,000, due to a $308.0 million increase in average deposit balances and a 121 basis point increase in the average rate paid[198]. - The net interest rate spread decreased to 2.25% from 2.52% in the previous year[194]. Credit Losses - A provision for credit losses of $660,000 and $1,313,000 was recorded for the three and nine months ended September 30, 2024, compared to net recoveries of $114,000 and $141,000 in 2023[189]. - LCNB recorded a provision for credit losses of $660,000 for Q3 2024, compared to a recovery of credit losses of $114,000 for the same period in 2023[211]. - For the nine months ended September 30, 2024, LCNB recorded a provision for credit losses of $1,313,000, compared to a recovery of credit losses of $141,000 for the same period in 2023[211]. - The provision for credit losses on loans during the nine-month 2024 period included $763,000 recognized on non-PCD loans acquired through the EFBI merger[212]. - Net charge-offs for the three and nine months ended September 30, 2024, totaled $84,000 and $147,000, respectively, compared to net charge-offs of $34,000 and $83,000 for the respective periods in 2023[213]. Assets and Deposits - Total assets as of September 30, 2024, were $2,365,676,000, compared to $1,971,269,000 in the previous year[194]. - Total assets increased to $2,346,908,000 as of September 30, 2024, from $2,291,592,000 at December 31, 2023, a difference of $55,316,000, or 2.41%[220]. - Total deposits rose to $1,917,005,000 as of September 30, 2024, from $1,824,389,000 at December 31, 2023, an increase of $92,616,000, or 5.08%[220]. - The increase in average loan and deposit balances during 2024 was attributed to the acquisitions of Eagle Financial Bancorp and Cincinnati Bancorp[188]. Mergers and Acquisitions - LCNB incurred expenses related to the acquisition of Eagle Financial Bancorp on April 12, 2024, and Cincinnati Bancorp on November 1, 2023, impacting net income[187]. - The increase in loan interest income was primarily due to loans acquired in the mergers with EFBI and CNNB[206]. - Goodwill increased primarily due to the merger with EFBI, contributing to a rise in core deposits and intangibles[55]. - Total remaining borrowing capacity with the Federal Home Loan Bank was approximately $120.9 million as of September 30, 2024[236]. Regulatory and Capital Ratios - Regulatory capital ratios as of September 30, 2024: Common Equity Tier 1 Capital to risk-weighted assets at 9.81% and Total Capital at 10.46%[232]. - Management believes that no conditions have occurred that would change LCNB's "well-capitalized" status under regulatory guidelines[231]. Interest Rate Sensitivity - The Bank's interest rate sensitivity analysis indicates that a 100 basis point increase in interest rates would negatively impact net interest income[241]. - The IRSA indicates that a 300 basis point increase in interest rates would result in a decrease of $1,332 thousand in net interest income (NII), representing a decline of 1.75%[242]. - A 200 basis point increase in interest rates would lead to a decrease of $901 thousand in NII, or 1.19%[242]. - The EVE analysis shows that a 300 basis point increase in interest rates would decrease the economic value of equity (EVE) by $36,037 thousand, or 18.50%[243]. Internal Controls and Procedures - LCNB's disclosure controls and procedures were evaluated as effective as of September 30, 2024[245]. - There were no changes in internal control over financial reporting that materially affected LCNB during the reporting period[246]. - LCNB does not use derivatives to hedge interest rate risk and has not entered into market risk instruments for trading purposes[240].

Core Viewpoint - LCNB is positioned as a strong investment opportunity due to its improving earnings outlook and analysts' increasing earnings estimates [1][2][3] Estimate Revisions - The trend of rising earnings estimate revisions reflects growing analyst optimism regarding LCNB's earnings prospects, which is expected to positively influence its stock price [2] - For the current quarter, LCNB is projected to earn $0.30 per share, representing an 11.76% decrease from the previous year, but the Zacks Consensus Estimate has increased by 7.14% over the last 30 days due to one upward revision [4] - For the full year, LCNB is expected to earn $1.09 per share, a 30.13% decline from the prior year, yet the consensus estimate has risen by 9% with one upward revision in the past month [5] Zacks Rank - LCNB currently holds a Zacks Rank 1 (Strong Buy), indicating strong agreement among analysts in raising earnings estimates, which historically correlates with stock performance [3][6] - Stocks with a Zacks Rank 1 and 2 have shown significant outperformance compared to the S&P 500 [6] Stock Performance - LCNB's stock has gained 5.3% over the past four weeks, driven by solid estimate revisions and positive earnings growth prospects [7]

Company Performance - LCNB reported quarterly earnings of $0.31 per share, exceeding the Zacks Consensus Estimate of $0.27 per share, but down from $0.37 per share a year ago, representing an earnings surprise of 14.81% [1] - The company posted revenues of $21.38 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.36% and up from $17.15 million year-over-year [1] - Over the last four quarters, LCNB has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [1] Future Outlook - The sustainability of LCNB's stock price movement will depend on management's commentary during the earnings call and the company's earnings outlook [2][3] - The current consensus EPS estimate for the coming quarter is $0.28 on revenues of $21.5 million, and for the current fiscal year, it is $1 on revenues of $82.4 million [4] - The estimate revisions trend for LCNB is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [4] Industry Context - The Banks - Northeast industry, to which LCNB belongs, is currently in the top 23% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [5] - Citizens Financial Services, another bank in the same industry, is expected to report quarterly earnings of $1.38 per share, reflecting a year-over-year decline of 14.3% [5]

Financial Performance - Interest income for the nine months ended September 30, 2024, increased to $78,121,000, up from $56,289,000 for the same period last year, representing a 38.8% growth[1] - Net interest income after provision for credit losses for the three months ended September 30, 2024, was $14,310,000, compared to $13,685,000 for the same period last year, reflecting a 4.6% increase[1] - Non-interest income rose to $6,407,000 for the three months ended September 30, 2024, up from $3,578,000 in the same period last year, marking an increase of 79.5%[1] - Net income for the three months ended September 30, 2024, was $4,532,000, compared to $4,070,000 for the same period last year, showing an increase of 11.4%[1] - Adjusted net income rose to $4,765 million from $4,078 million, reflecting a strong performance[6] - Net income increased to $4,532 million compared to $925 million in the previous quarter, representing a significant increase[6] Asset and Liability Management - Total assets decreased to $2,346,908 million from $2,371,313 million, a decline of approximately 1.03%[5] - Total deposits decreased to $1,917,005 million from $1,943,060 million, a decline of about 1.34%[5] - Total assets increased to $2,365,676 million, up from $1,971,269 million year-over-year[8] - Total assets managed increased to $4,247,253 million from $4,205,498 million, showing growth in asset management[6] - Total liabilities increased to $2,093,662 thousand as of September 30, 2024, from $2,056,289 thousand at December 31, 2023, a rise of about 1.8%[11] Credit Quality - The provision for credit losses was $660,000 for the three months ended September 30, 2024, compared to a recovery of $(114,000) in the same period last year[1] - Nonperforming loans increased to $3,284 million from $3,004 million, indicating a rise in asset quality concerns[5] - The allowance for credit losses was $11,064 million, reflecting an increase from $7,782 million year-over-year[9] Efficiency and Profitability Ratios - Return on average assets for the three months ended September 30, 2024, was 0.76%, up from 0.42% for the same period last year[2] - Return on average equity for the three months ended September 30, 2024, increased to 7.23%, compared to 4.06% for the same period last year[2] - The efficiency ratio (tax equivalent) improved to 71.83% for the three months ended September 30, 2024, down from 83.05% for the same period last year[2] - Adjusted return on average equity improved to 7.60% from 6.72%, reflecting enhanced profitability[6] Capital Position - The equity to assets ratio improved to 10.79% from 10.34%, indicating stronger capital position[5] - Tangible common equity (TCE) increased to $154,728 million from $142,679 million, indicating a stronger equity base[5] Loan and Deposit Metrics - Loans, net as of September 30, 2024, were $1,707,193,000, compared to $1,450,472,000 as of September 30, 2023, indicating a growth of 17.7%[3] - The loans to deposits ratio increased to 89.67% from 89.38%, suggesting a tighter lending environment[5] - Interest earned on loans for the nine months ended September 30, 2024, was $71,860 million, with an average yield of 5.42%[9] - Interest income from loans was $24,342 thousand for the three months ended September 30, 2024, up from $17,875 thousand in the same period last year, indicating a growth of about 36.0%[13] Interest Income and Expenses - The net interest margin on a taxable-equivalent basis was 2.81% for the nine months ended September 30, 2024[9] - Total interest-bearing liabilities amounted to $1,649,368 million, with an interest expense of $11,428 million and an average yield of 2.76%[8] - The ratio of interest-earning assets to interest-bearing liabilities was 127.65%[9] - The company reported a net interest rate spread of 2.22% for the nine months ended September 30, 2024[9] Goodwill and Other Assets - Goodwill increased to $90,209 thousand as of September 30, 2024, from $79,509 thousand at December 31, 2023, reflecting a growth of approximately 13.5%[12] - Cash and cash equivalents increased to $39,374,000 as of September 30, 2024, compared to $32,951,000 as of September 30, 2023, representing a 19.5% increase[2]

Financial Performance - Net income for Q2 2024 was $925,000, down from $4,694,000 in Q2 2023, reflecting the impact of acquisition-related expenses [143]. - Net interest income for Q2 2024 increased to $15,217,000 from $14,177,000 in Q2 2023, driven by higher average loan balances and increased rates [144]. - Non-interest income for Q2 2024 rose to $4,080,000 from $3,646,000 in Q2 2023, primarily due to increased fiduciary income and net gains from residential mortgage loan sales [145]. - Non-interest expense for Q2 2024 was $17,825,000, up from $12,078,000 in Q2 2023, largely due to costs associated with acquisitions and additional personnel [146]. - The effective tax rate for Q2 2024 was 2.0%, significantly lower than 17.9% for the same period in 2023, primarily due to tax-exempt interest income and other tax-exempt earnings [170]. - LCNB recorded a provision for credit losses of $528,000 for Q2 2024, compared to $30,000 for the same period in 2023, reflecting a significant increase in credit loss provisions [163]. - Total non-interest expense for Q2 2024 was $17,825,000, an increase of $5,747,000 from $12,078,000 in Q2 2023, largely due to increased salaries and employee benefits and merger-related expenses [168]. Acquisitions and Mergers - The company completed the acquisition of Eagle Financial Bancorp on April 12, 2024, and Cincinnati Bancorp on November 1, 2023, impacting financial results [143]. - Average loan and deposit balances increased in 2024 due to the acquisitions of EFBI and CNNB [144]. - LCNB recorded an $843,000 pretax loss on the sale of approximately $48.9 million of below-market rate loans acquired from Cincinnati Bancorp [145]. - The increase in loan interest income was attributed to organic growth and loans acquired from mergers with EFBI and CNNB, contributing to the overall growth in the loan portfolio [159]. - Total deposits increased by $118,671 thousand, or 6.50%, primarily due to deposits acquired through the merger with EFBI and organic growth [173]. - Common shares increased by $13,558 thousand, or 7.81%, primarily due to stock issued as part of the acquisition price for EFBI [173]. Credit Losses and Provisions - Provision for credit losses for Q2 2024 was $528,000, significantly higher than $30,000 in Q2 2023, including $763,000 from non-PCD loans acquired in the Eagle Financial Bancorp merger [145]. - The total provision for credit losses for the six months ended June 30, 2024, was $653,000, compared to a net recovery of $27,000 for the same period in 2023, indicating a shift towards recognizing potential credit losses [163]. - Net charge-offs for the three and six months ended June 30, 2024 totaled $18,000 and $63,000, respectively, compared to $33,000 and $49,000 for the same periods in 2023 [165]. Interest Income and Expenses - Total interest income increased by $15,086,000, primarily due to a $14,612,000 increase in loan interest income driven by a $372.7 million increase in average loan balances and a 65 basis point increase in the average rate earned on the loan portfolio [159]. - Total interest expense rose by $14,109,000, mainly due to a $4,650,000 increase in interest expense for interest-bearing demand and money market deposits, a $7,199,000 increase for IRA and time certificates, and a $3,216,000 increase for long-term debt [160]. - The average yield on loans increased to 5.40% in 2024 from 4.75% in 2023, reflecting a 71 basis point rise due to higher market rates [155]. - The net interest rate spread decreased to 2.19% for the six months ended June 30, 2024, compared to 2.87% for the same period in 2023 [155]. Assets and Liabilities - Total assets as of June 30, 2024, were $2,349,775,000, up from $1,925,005,000 in 2023 [155]. - Long-term debt increased by $49,027 thousand, or 43.34%, due to additional advances from the FHLB of Cincinnati [173]. - Goodwill increased by $14,413 thousand, or 18.13%, primarily due to additional goodwill recognized from the EFBI acquisition [172]. - The ratio of interest-earning assets to interest-bearing liabilities was 127.82% for the six months ended June 30, 2024, down from 141.46% in 2023 [155]. Liquidity and Risk Management - Management believes LCNB has adequate liquidity to meet short and long-term requirements without operational problems [185]. - The bank's liquidity management ensures cash is available for borrowers, depositors, and operational needs [182]. - LCNB does not use derivatives to hedge interest rate risk and has not entered into any market risk instruments for trading purposes [188]. - The Interest Rate Sensitivity Analysis (IRSA) indicates that a 300 basis point increase in interest rates would result in a decrease of $2.453 million (3.27%) in net interest income (NII) [189]. - The Economic Value of Equity (EVE) analysis shows that a 300 basis point increase in interest rates would lead to a decrease of $29.094 million (18.32%) in EVE [190]. Regulatory and Legal Matters - No changes in internal control over financial reporting have materially affected LCNB's internal controls during the reporting period [193]. - LCNB is not involved in any material pending legal proceedings, aside from routine litigation incidental to its business [195].

Core Viewpoint - Investors are encouraged to consider LCNB as earnings estimates show solid improvement, with the stock gaining short-term price momentum that may continue due to an improving earnings outlook [1][2]. Earnings Estimate Revisions - Analysts' optimism regarding LCNB's earnings prospects is driving higher estimates, which is expected to reflect positively in the stock price [2]. - The current-quarter earnings estimate is $0.27 per share, a decrease of 27.03% from the previous year, but the Zacks Consensus Estimate has increased by 17.39% over the last 30 days due to one upward revision [4]. - For the full year, LCNB is expected to earn $1 per share, representing a year-over-year decline of 35.9%, yet the consensus estimate has risen by 13.64% following one upward revision [5]. Zacks Rank and Performance - LCNB has achieved a Zacks Rank 1 (Strong Buy) due to favorable estimate revisions, which historically correlate with significant outperformance compared to the S&P 500 [6]. - Stocks with a Zacks Rank 1 have generated an average annual return of +25% since 2008, indicating strong potential for LCNB [3][6]. Investment Outlook - The stock has increased by 10.2% over the past four weeks due to strong estimate revisions, suggesting further upside potential, making it a candidate for portfolio addition [7].

Core Viewpoint - LCNB has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of changing earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for LCNB indicate an improvement in the company's underlying business, likely leading to an increase in stock price as investors respond positively to this trend [5][10]. Zacks Rating System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7][9]. - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, indicating superior earnings estimate revisions and potential for market-beating returns [10]. Earnings Estimate Revisions for LCNB - For the fiscal year ending December 2024, LCNB is expected to earn $1 per share, reflecting a change of -35.9% from the previous year, but analysts have raised their estimates by 13.6% over the past three months [8].

Core Viewpoint - LCNB reported quarterly earnings of $0.29 per share, exceeding the Zacks Consensus Estimate of $0.18 per share, but down from $0.45 per share a year ago [1][10] Financial Performance - LCNB's revenues for the quarter ended June 2024 were $19.3 million, surpassing the Zacks Consensus Estimate by 4.31%, compared to $17.82 million in the same quarter last year [2] - The company has exceeded consensus revenue estimates twice in the last four quarters [2] - The current consensus EPS estimate for the upcoming quarter is $0.23 on revenues of $19.6 million, and for the current fiscal year, it is $0.82 on revenues of $76.3 million [4] Stock Performance - LCNB shares have declined approximately 5.2% since the beginning of the year, while the S&P 500 has gained 16.7% [3] - The stock's immediate price movement will largely depend on management's commentary during the earnings call [6] Earnings Outlook - The trend for estimate revisions for LCNB is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [12] - The industry outlook can significantly impact LCNB's stock performance, with the Banks - Northeast industry currently ranking in the top 27% of over 250 Zacks industries [13]

Exhibit 99.2 | --- | --- | --- | --- | --- | --- | |----------------------------------|---------------|-----------|-----------|-----------|-----------| | Deferred net origination fees | (533) | (583) | (181) | (796) | (844) | | Loans, gross | 1,736,747 | 1,656,354 | 1,723,471 | 1,458,404 | 1,439,251 | | Less allowance for credit losses | 11,270 | 10,557 | 10,525 | 7,932 | 7,956 | | Loans, net | $ 1,725,477 | 1,645,797 | 1,712,946 | 1,450,472 | 1,431,295 | | Loans held for sale | 44,002 | 75,581 | — | — | — ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-35292 LCNB Corp. (Exact name of registrant as specified in its charter) Ohio 31-1626393 (State or other jurisdiction of incorporati ...