LCNB (LCNB) - 2024 Q3 - Quarterly Results

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]