LCNB (US:LCNB)2021-05-05 20:31Financial Performance - Net income for the three months ended March 31, 2021, was $5,240 thousand, compared to $5,026 thousand for the same period in 2020, reflecting an increase of 4.25%[15] - Net income for the three months ended March 31, 2021, was $5,240 million, an increase from $5,026 million in the same period of 2020, representing a growth of 4.3%[23] - The company declared dividends of $0.19 per common share for Q1 2021, up from $0.18 per share in Q1 2020[15] - Basic earnings per common share for Q1 2021 was $0.41, consistent with the $0.39 reported in Q1 2020[124] - The company reported net income of $5,240,000 for the three months ended March 31, 2021, compared to $5,026,000 for the same period in 2020, representing a year-over-year increase of 4.3%[124] Asset and Deposit Growth - Total assets increased to $1,818,321 thousand as of March 31, 2021, up from $1,745,884 thousand at December 31, 2020, representing a growth of 4.16%[12] - Total deposits increased to $1,537,116 thousand as of March 31, 2021, up from $1,455,423 thousand at December 31, 2020, a growth of 5.6%[12] - The net increase in deposits for the three months ended March 31, 2021, was $81,693 million, compared to a decrease of $2,408 million in the same period of 2020[23] - Total deposits rose by $81,693 thousand, or 5.61%, with non-interest-bearing deposits increasing by 4.41% and interest-bearing deposits by 6.16%[195] Loan Portfolio and Quality - As of March 31, 2021, total loans amounted to $1,336,632,000, an increase of 2.5% from $1,300,556,000 at December 31, 2020[47] - LCNB's total loan portfolio as of March 31, 2021, was $1,335,101,000, an increase from $1,299,421,000 as of December 31, 2020, representing a growth of approximately 2.75%[64] - The residential real estate loan category had a recorded investment of $328,776,000 as of March 31, 2021, compared to $310,085,000 at the end of 2020, indicating an increase of about 6%[64] - The percentage of loans categorized as "Pass" in the residential real estate segment was 98.2% as of March 31, 2021, up from 98.0% at the end of 2020[64] - The total number of troubled debt restructurings (TDRs) during the three months ended March 31, 2021, was 1, with a recorded balance of $21,000[70] Income and Expense Analysis - Non-interest income decreased to $3,465 thousand in Q1 2021 from $3,839 thousand in Q1 2020, a decline of 9.7%[15] - Total non-interest expense increased to $11,492 thousand in Q1 2021, compared to $11,072 thousand in Q1 2020, an increase of 3.8%[15] - Total interest income for Q1 2021 decreased by $1,037,000 compared to Q1 2020, primarily due to a $692,000 decrease in loan interest income and a $309,000 decrease in interest income from taxable and non-taxable debt securities[180] - Non-interest income for Q1 2021 totaled $3,465,000, a decrease of $374,000 from Q1 2020, with fiduciary income increasing by $426,000[187] - Total non-interest expense for Q1 2021 was $11,492,000, an increase of $420,000 compared to Q1 2020, driven by higher equipment and occupancy expenses[190] Capital and Equity - Total shareholders' equity decreased to $239,246 thousand as of March 31, 2021, down from $240,825 thousand at December 31, 2020, a decline of 0.66%[12] - Tier 1 risk-based capital increased to $172,386 thousand from $168,351 thousand, maintaining a Common Equity Tier 1 Capital ratio of 12.48%[206] - The company reported a total comprehensive income of $1,800 thousand for Q1 2021, compared to $7,509 thousand for Q1 2020, a decrease of 76.0%[17] Tax and Regulatory Matters - The effective tax rate for the three months ended March 31, 2021, was 18.1%, up from 12.9% in the same period of 2020[95] - Tax credits and other tax benefits recognized for the three months ended March 31, 2021, were $260,000, an increase from $159,000 in the same period of 2020[91] Risk Management and Economic Conditions - LCNB's financial condition and operations are subject to risks from the COVID-19 pandemic, which may affect liquidity and capital positions[158] - The company anticipates potential difficulties in growing loan and deposit balances due to economic conditions and increased competition[158] - The allowance for loan losses is expected to increase due to the implementation of ASU No. 2016-13, although the exact financial impact cannot be estimated at this time[154] Cash Flow and Liquidity - Net cash flows provided by operating activities increased significantly to $4,039 million from $1,305 million year-over-year, marking a rise of 209.5%[23] - The company believes that it has sufficient liquidity to fund its lending and capital expenditure commitments[104] - The total remaining borrowing capacity at March 31, 2021, was approximately $172.6 million[92] Investment and Securities - The amortized cost of debt securities available-for-sale was $236,470 million with a fair value of $237,619 million as of March 31, 2021[35] - The fair value of available-for-sale debt securities is estimated using market quotations and discounted cash flow methods[170] - The total fair value of debt securities available-for-sale was $240,125,000 as of March 31, 2021, compared to $211,860,000 on December 31, 2020[134]