LCNB (LCNB) - 2025 Q2 - Quarterly Results

Financial Highlights and Performance Ratios LCNB Corp. demonstrates strong financial performance, highlighted by improved income, per share data, and key profitability and efficiency ratios Income Statement and Per Share Data LCNB Corp. reported significant increases in net income and diluted EPS for Q2 and H1 2025, driven by higher net interest income and reduced credit loss provisions, while maintaining its quarterly dividend Quarterly and Six-Month Income Summary (in thousands) | Metric | Q2 2025 ($ thousands) | Q2 2024 ($ thousands) | Change (YoY) | H1 2025 ($ thousands) | H1 2024 ($ thousands) | Change (YoY) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $17,541 | $15,217 | +15.3% | $33,840 | $29,112 | +16.2% | | Provision for Credit Losses | $18 | $528 | -96.6% | $215 | $653 | -67.1% | | Net Income | $5,919 | $925 | +540% | $10,528 | $2,840 | +271% | Per Share Data | Metric | Q2 2025 ($) | Q2 2024 ($) | Change (YoY) | H1 2025 ($) | H1 2024 ($) | Change (YoY) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Diluted EPS | $0.41 | $0.07 | +485.7% | $0.74 | $0.21 | +252.4% | | Dividends per share | $0.22 | $0.22 | 0.0% | $0.44 | $0.44 | 0.0% | | Book value per share | $18.59 | $17.33 | +7.3% | $18.59 | $17.33 | +7.3% | | Tangible book value per share | $11.69 | $10.08 | +16.0% | $11.69 | $10.08 | +16.0% | Key Financial Ratios Key profitability ratios, including ROA and ROE, significantly improved in Q2 2025, alongside an expanded net interest margin and a more efficient operations ratio Profitability and Efficiency Ratios | Ratio | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Return on average assets | 1.04% | 0.15% | 0.93% | 0.24% | | Return on average equity | 9.09% | 1.53% | 8.22% | 2.38% | | Return on average tangible common equity | 14.54% | 2.59% | 13.26% | 3.88% | | Net interest margin (tax equivalent) | 3.47% | 2.86% | 3.36% | 2.80% | | Efficiency ratio (tax equivalent) | 68.18% | 92.19% | 70.68% | 89.51% | Balance Sheet and Asset Quality This section reviews LCNB Corp.'s balance sheet composition, including assets, liabilities, and equity, alongside an assessment of asset quality metrics Balance Sheet Summary LCNB Corp.'s balance sheet as of June 30, 2025, shows stable total assets, a slight decrease in gross loans, increased deposits, and a strengthened capital position Key Balance Sheet Items (in thousands) | Item | 6/30/2025 ($ thousands) | 12/31/2024 ($ thousands) | 6/30/2024 ($ thousands) | | :--- | :--- | :--- | :--- | | Total Assets | $2,307,800 | $2,307,394 | $2,371,313 | | Loans, gross | $1,713,010 | $1,721,812 | $1,736,747 | | Total Deposits | $1,919,372 | $1,878,292 | $1,943,060 | | Total Shareholders' Equity | $263,474 | $253,036 | $245,214 | Capital Ratios | Ratio | 6/30/2025 | 12/31/2024 | 6/30/2024 | | :--- | :--- | :--- | :--- | | Equity to assets ratio | 11.42% | 10.97% | 10.34% | | TCE/TCA | 7.50% | 7.00% | 6.29% | Asset Quality LCNB Corp. maintained strong and stable asset quality in Q2 2025, characterized by consistent non-performing loan ratios and minimal net charge-offs Asset Quality Ratios | Ratio | 6/30/2025 | 3/31/2025 | 6/30/2024 | | :--- | :--- | :--- | :--- | | Nonperforming loans to total loans | 0.28% | 0.28% | 0.17% | | Nonperforming assets to total assets | 0.21% | 0.21% | 0.13% | | Allowance for credit losses on loans to total loans | 0.71% | 0.71% | 0.65% | | Net charge-offs to average loans | 0.02% | 0.01% | 0.00% | - Total non-performing loans were $4.8 million at the end of Q2 2025, a slight increase from $3.0 million a year prior[5] Assets Under Management This section provides a detailed breakdown of LCNB Corp.'s total assets under management, encompassing both on-balance-sheet and off-balance-sheet items Assets Under Management Details LCNB Corp.'s total assets under management reached approximately $4.18 billion as of June 30, 2025, comprising on-balance-sheet assets and various off-balance-sheet items Assets Under Management Breakdown (in thousands) | Category | 6/30/2025 ($ thousands) | 6/30/2024 ($ thousands) | | :--- | :--- | :--- | | LCNB Corp. total assets | $2,307,800 | $2,371,313 | | Trust and investments (fair value) | $990,699 | $897,746 | | Mortgage loans serviced | $348,003 | $422,951 | | Investment services (fair value) | $466,299 | $419,646 | | Total assets managed | $4,175,538 | $4,205,498 | Detailed Financial Analysis This section provides an in-depth financial analysis, including average balances, net interest margin trends, and consolidated financial statements Average Balances and Net Interest Margin Analysis LCNB Corp. experienced an improved tax-equivalent net interest margin in Q2 and H1 2025, driven by a reduced cost of interest-bearing liabilities and a wider net interest rate spread Quarterly Net Interest Margin Analysis | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Avg. Yield on Earning Assets | 5.13% | 5.07% | | Avg. Cost of Interest-Bearing Liabilities | 2.19% | 2.80% | | Net Interest Rate Spread | 2.94% | 2.27% | | Net Interest Margin (Tax-Equivalent) | 3.47% | 2.86% | Six-Month Net Interest Margin Analysis | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Avg. Yield on Earning Assets | 5.09% | 4.96% | | Avg. Cost of Interest-Bearing Liabilities | 2.27% | 2.77% | | Net Interest Rate Spread | 2.82% | 2.19% | | Net Interest Margin (Tax-Equivalent) | 3.36% | 2.80% | Consolidated Condensed Balance Sheets LCNB Corp.'s consolidated balance sheet as of June 30, 2025, shows stable total assets, increased cash, reduced long-term debt, and a strengthened total shareholders' equity Balance Sheet Comparison (in thousands) | Account | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | | :--- | :--- | :--- | | ASSETS | | | | Total cash and cash equivalents | $49,778 | $35,744 | | Loans, net | $1,700,902 | $1,709,811 | | TOTAL ASSETS | $2,307,800 | $2,307,394 | | LIABILITIES & EQUITY | | | | Total deposits | $1,919,372 | $1,878,292 | | Long-term debt | $105,000 | $155,153 | | TOTAL LIABILITIES | $2,044,326 | $2,054,358 | | TOTAL SHAREHOLDERS' EQUITY | $263,474 | $253,036 | Consolidated Condensed Statements of Income LCNB Corp.'s net income significantly surged in Q2 and H1 2025, driven by increased net interest and non-interest income, coupled with a substantial reduction in non-interest expenses, particularly merger-related costs Income Statement Comparison (in thousands) | Account | Q2 2025 ($ thousands) | Q2 2024 ($ thousands) | H1 2025 ($ thousands) | H1 2024 ($ thousands) | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $17,541 | $15,217 | $33,840 | $29,112 | | Provision for Credit Losses | $18 | $528 | $215 | $653 | | Total Non-Interest Income | $5,248 | $4,080 | $10,470 | $8,009 | | Total Non-Interest Expense | $15,567 | $17,825 | $31,376 | $33,297 | | Net Income | $5,919 | $925 | $10,528 | $2,840 | - Merger-related expenses dropped significantly, from $2.32 million in Q2 2024 to $140 thousand in Q2 2025, contributing to lower overall non-interest expenses[14]