LCNB (LCNB) - 2025 Q1 - Quarterly Results

LCNB Corp. Financial Highlights for the Quarter Ended March 31, 2025 Financial and Operational Highlights (Q1 2025) LCNB Corp. reported Q1 2025 net income of $4.6 million, a significant year-over-year increase, with improved net interest margin Q1 2025 Key Financial Metrics | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Net Income (in thousands) | $4,609 | $6,120 | $1,915 | | Diluted EPS | $0.33 | $0.44 | $0.15 | | Dividends per Share | $0.22 | $0.22 | $0.22 | | Return on Average Assets | 0.81% | 1.04% | 0.34% | | Return on Average Equity | 7.33% | 9.60% | 3.28% | | Net Interest Margin (tax eq.) | 3.25% | 3.22% | 2.72% | - Book value per share increased to $18.26 at the end of Q1 2025, compared to $17.92 at the end of Q4 2024 and $17.67 at the end of Q1 2024[2] Gross Loan Portfolio Composition (Q1 2025) | Loan Category | Amount (in thousands) | | :--- | :--- | | Commercial, secured by real estate | $1,110,276 | | Residential real estate | $463,379 | | Commercial and industrial | $112,580 | | Consumer | $19,030 | | Agricultural | $13,161 | | Total Gross Loans | $1,717,630 | Consolidated Balance Sheets LCNB Corp.'s Q1 2025 balance sheet shows stable total assets, increased deposits and equity, and a significant reduction in long-term debt Balance Sheet Comparison (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | $2,302,745 | $2,307,394 | | Loans, net | $1,705,506 | $1,709,811 | | Total Deposits | $1,921,649 | $1,878,292 | | Long-term debt | $104,637 | $155,153 | | Total Shareholders' Equity | $258,651 | $253,036 | - The increase in shareholders' equity was supported by retained earnings growth and a reduction in accumulated other comprehensive loss[10] Consolidated Statements of Income Net income more than doubled year-over-year in Q1 2025, driven by increased net interest and non-interest income, alongside reduced interest expense Income Statement YoY Comparison (in thousands) | Account | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net Interest Income | $16,299 | $13,895 | | Provision for Credit Losses | $197 | $125 | | Non-Interest Income | $5,222 | $3,929 | | Non-Interest Expense | $15,809 | $15,472 | | Net Income | $4,609 | $1,915 | | Diluted EPS | $0.33 | $0.15 | - Total interest expense decreased to $9.0 million in Q1 2025 from $10.9 million in Q1 2024, largely due to a sharp drop in interest on short-term borrowings from $935 thousand to just $1 thousand[12] - Non-interest expense in Q1 2025 did not include any merger-related expenses, which amounted to $775 thousand in Q1 2024[12] Asset Quality Asset quality remained stable in Q1 2025, with a slight increase in nonperforming loans but minimal net charge-offs and a higher allowance for credit losses Key Asset Quality Metrics | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Nonperforming loans (in thousands) | $4,891 | $4,618 | $3,243 | | Net charge-offs (in thousands) | $39 | $595 | $45 | | Allowance for credit losses on loans (in thousands) | $12,124 | $12,001 | $10,557 | | Nonperforming loans to total loans | 0.28% | 0.27% | 0.20% | | ACL on loans to total loans | 0.71% | 0.70% | 0.64% | - The provision for credit losses on loans for Q1 2025 was $162 thousand, down from $728 thousand in the prior quarter but up from $77 thousand in Q1 2024[4] Net Interest Income Analysis The company's net interest margin and spread expanded in Q1 2025, driven by higher asset yields and lower interest-bearing liability rates Net Interest Margin and Spread | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Net Interest Rate Spread | 2.71% | 2.63% | 2.11% | | Net Interest Margin (tax eq.) | 3.25% | 3.22% | 2.72% | - The average yield on loans increased to 5.46% in Q1 2025 from 5.30% in Q1 2024[7] - The average rate paid on total interest-bearing liabilities decreased to 2.34% in Q1 2025 from 2.74% in Q1 2024, primarily due to lower costs on borrowings[7] Assets Under Management Total assets under management reached $4.16 billion in Q1 2025, showing year-over-year growth driven by trust and brokerage accounts Assets Under Management (in thousands) | Category | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | LCNB Corp. total assets | $2,302,745 | $2,307,394 | $2,283,151 | | Trust and investments (fair value) | $957,359 | $942,249 | $890,800 | | Brokerage accounts (fair value) | $441,621 | $438,310 | $411,211 | | Total assets managed | $4,157,148 | $4,232,235 | $3,984,966 |