LCNB (US:LCNB)2025-11-05 21:02Financial Performance - Net income for the three months ended September 30, 2025, was $6,936 thousand, up from $4,532 thousand in the same period of 2024, indicating a year-over-year increase of approximately 53.1%[13]. - Net income for the nine months ended September 30, 2025, was $17,464,000, compared to $7,372,000 for the same period in 2024, representing a 137% increase[23]. - Basic earnings per common share for the three months ended September 30, 2025, was $0.49, up from $0.31 in 2024, reflecting a 58.1% increase[118]. - Total comprehensive income for the three months ended September 30, 2025, was $9,246 thousand, compared to $11,601 thousand in the same period of 2024, a decrease of about 20.3%[16]. - Net income for the three months ended September 30, 2025, was $6.9 million, an increase from $4.5 million in the same period of 2024, representing a 53.3% growth[152]. Income and Expenses - Net interest income increased to $18,126 thousand for the three months ended September 30, 2025, compared to $14,970 thousand for the same period in 2024, reflecting a growth of about 21.5%[13]. - Non-interest income for the three months ended September 30, 2025, was $5,704 thousand, down from $6,407 thousand in the same period of 2024, a decline of approximately 10.9%[13]. - Non-interest expense for the nine months ended September 30, 2025, was $46.5 million, a decrease from $48.7 million in 2024, reflecting a reduction of 4.5%[156]. - Total non-interest income for the nine months ended September 30, 2025, was $16.2 million, an increase of $1.8 million from $14.4 million in 2024[183]. - Total non-interest expense for the three months ended September 30, 2025, was $15,145,000, a decrease of 1.57% compared to $15,387,000 in 2024[186]. Assets and Liabilities - Total assets decreased to $2,244,365 thousand as of September 30, 2025, from $2,307,394 thousand at December 31, 2024, representing a decline of approximately 2.73%[10]. - Total deposits decreased to $1,849,082 thousand as of September 30, 2025, from $1,878,292 thousand at December 31, 2024, a reduction of about 1.55%[10]. - Long-term debt as of September 30, 2025, totaled $104,717 thousand, with a weighted average interest rate of 4.98%[92]. - Long-term debt decreased by $50,436,000, or 32.51%, to $104,717,000 due to early payoff of advances[191]. - The total balance of loans at the end of the period was $1,059,000 for commercial and industrial loans, $6,495,000 for commercial real estate loans, and $4,371,000 for residential real estate loans[60]. Credit Quality and Losses - The provision for credit losses was $211 thousand for the three months ended September 30, 2025, compared to $660 thousand for the same period in 2024, showing a decrease of about 68%[13]. - The allowance for credit losses (ACL) was $12.17 million as of September 30, 2025, compared to $12.00 million at December 31, 2024, indicating a slight increase in provisions[52]. - The ratio of non-accrual loans to total loans outstanding improved to 0.11% as of September 30, 2025, down from 0.26% at December 31, 2024[55]. - The company reported gross charge-offs of $110 thousand for commercial real estate loans and $55 thousand for residential real estate loans for the nine months ended September 30, 2025[76]. - The provision for credit losses for the three months ended September 30, 2025, was a recovery of $231,000, while for the nine months ended, it was a recovery of $456,000[60]. Shareholders' Equity - Total shareholders' equity increased to $269,870 thousand as of September 30, 2025, from $253,036 thousand at December 31, 2024, representing a growth of approximately 6.7%[10]. - The total shareholders' equity increased from $263,474,000 on July 1, 2025, to $269,870,000 on September 30, 2025[19]. - As of September 30, 2025, LCNB's shareholders' equity increased to $274.235 million from $259.811 million as of December 31, 2024, reflecting a growth of approximately 5.5%[204]. - The Common Equity Tier 1 Capital to risk-weighted assets ratio improved to 10.94% in September 2025, up from 9.94% in December 2024[204]. - Total risk-based capital increased to $199.255 million in September 2025, compared to $190.526 million in December 2024, representing a growth of about 4.3%[204]. Acquisitions and Investments - LCNB acquired Eagle Financial Bancorp, Inc. on April 12, 2024, enhancing its presence in the Cincinnati market[35]. - The total consideration transferred for the EFBI acquisition was $22.36 million, with cash consideration of $10.173 million and common stock valued at $12.187 million[38]. - The identifiable net assets acquired from EFBI amounted to $12.083 million, resulting in goodwill of $10.277 million[38]. - The company reported a net decrease in loans of $45,189,000 for the nine months ended September 30, 2025[23]. - The amortized cost of debt securities at September 30, 2025, was $257.564 million, with a fair value of $243.105 million[42]. Tax and Regulatory Matters - The effective tax rate for the three months ended September 30, 2025, was 18.2%, compared to 15.0% for the same period in 2024[98]. - LCNB's management believes it has adequate liquidity to meet both short-term and long-term funding needs without operational issues[207]. - The bank and LCNB were categorized as "well-capitalized" under the regulatory framework, indicating strong capital adequacy[202]. - LCNB plans to withdraw from its defined benefit retirement plan by the end of December 2025, with annuity purchases for active employees occurring in Q1 2026[108]. - The company engages third-party specialists to assist in developing fair value estimates for acquired assets and liabilities, ensuring compliance with accounting standards[141].