LCNB (LCNB) - 2025 Q4 - Annual Results

Financial Performance - Net income for the year ended December 31, 2025, was $23,120,000, compared to $13,492,000 in 2024, reflecting a year-over-year increase of 71.5%[2] - Basic earnings per common share for Q4 2025 was $0.40, down from $0.44 in Q4 2024, showing a decrease of 9.1%[2] - Net interest income for the year ended December 31, 2025, was $70,388, with a net interest margin of 3.50%[9] - Net interest income increased from $60,795 million in 2024 to $70,222 million in 2025, a growth of approximately 15.4%[14] - Non-interest income rose from $20,404 million in 2024 to $21,775 million in 2025, an increase of about 6.7%[14] - The company reported a net interest income after provision for credit losses of $68,286 million in 2025, compared to $58,833 million in 2024, an increase of about 16.0%[14] Asset and Liability Management - Total assets as of December 31, 2025, were $2,240,769 million, a slight decrease from $2,244,365 million in the previous quarter[6] - Total assets decreased from $2,307,394 million in 2024 to $2,240,769 million in 2025, a decline of approximately 2.9%[12] - Total deposits decreased to $1,840,355 million from $1,849,082 million in the previous quarter, indicating a decline in customer deposits[4] - Total deposits fell from $1,878,292 million in 2024 to $1,840,355 million in 2025, representing a decrease of about 2.0%[12] - Total loans, gross, as of December 31, 2025, were $1,705,531,000, a slight decrease from $1,721,812,000 in 2024[3] Credit Quality - Provision for credit losses increased to $1,510,000 in Q4 2025 from $649,000 in Q4 2024, indicating a significant rise in expected credit losses[2] - The allowance for credit losses on loans increased to $13,704 million from $12,170 million in the previous quarter, reflecting a provision for credit losses of $1,520 million[4] - Non-performing loans as a percentage of total loans were 0.14%, showing a slight increase from 0.12% in the previous quarter[5] - The net charge-offs to average loans ratio remained at 0.00%, indicating stable asset quality[5] - Provision for credit losses was $1,936 million in 2025, slightly down from $1,962 million in 2024[14] Efficiency and Cost Management - The efficiency ratio (tax equivalent) improved to 64.39% in Q4 2025 from 64.16% in Q4 2024, indicating better cost management[3] - Total non-interest expense decreased from $63,276 million in 2024 to $61,909 million in 2025, a reduction of approximately 2.2%[14] Shareholder Value - Book value per share increased to $19.30 as of December 31, 2025, compared to $17.92 a year earlier, indicating growth in shareholder equity[2] - The dividend payout ratio increased to 55.00% in Q4 2025 from 50.00% in Q4 2024, reflecting a higher proportion of earnings distributed to shareholders[3] - The total shareholders' equity increased to $273,929 million from $269,870 million in the previous quarter, reflecting growth in retained earnings[4] Interest Income and Yield - The average outstanding loans for the year ended December 31, 2025, were $1,705,520, with an interest earned of $94,313, resulting in an average yield of 5.53%[9] - Interest-bearing demand deposits for the year ended December 31, 2025, totaled $9,592, generating interest of $577, with a yield of 6.02%[9] - The net interest rate spread for the year ended December 31, 2025, was 2.97%, an increase from 2.32% in the previous year[9] - Total interest-bearing liabilities for the year ended December 31, 2025, were $1,519,549, with total interest paid of $32,525, resulting in an average yield of 2.14%[9] - The ratio of interest-earning assets to interest-bearing liabilities was 132.49% for the year ended December 31, 2025, compared to 128.19% in 2024[9] - Average outstanding interest-bearing time deposits for the year ended December 31, 2025, were $443, with interest earned of $14, yielding 3.16%[9] - Total earnings assets for the year ended December 31, 2025, were $2,013,275, generating total interest income of $102,913, with an average yield of 5.11%[9] - The average outstanding balance of Federal Home Loan Bank stock was $20,710, with interest earned of $1,785, resulting in an average yield of 8.62% for the year ended December 31, 2025[9]