LCNB (LCNB) - 2025 Q3 - Quarterly Results

Financial Highlights Overview 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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% |