LCNB (US:LCNB)2021-11-03 20:17Financial Performance - Net income for the three months ended September 30, 2021, was $4,817 thousand, an increase of 13.3% from $4,250 thousand in the same period of 2020[16]. - Net income for the nine months ended September 30, 2021, was $15,347 thousand, compared to $14,333 thousand for the same period in 2020, representing a growth of 7.1%[22]. - Earnings per common share (diluted) for the three months ended September 30, 2021, was $0.39, compared to $0.33 for the same period in 2020, reflecting an increase of 18.2%[14]. - Basic and diluted earnings per common share for the nine months ended September 30, 2021, were both $1.21, up from $1.11 in 2020, indicating a 9.0% growth[127]. - The company reported a total comprehensive income of $4,817 thousand for the three months ended September 30, 2021, compared to a loss of $667 thousand in the same period of the previous year[19]. Asset and Deposit Growth - Total assets increased to $1,884,252 thousand as of September 30, 2021, up from $1,745,884 thousand at December 31, 2020, representing an increase of 7.9%[12]. - Total deposits rose to $1,603,203 thousand as of September 30, 2021, compared to $1,455,423 thousand at December 31, 2020, marking an increase of 10.1%[12]. - The net increase in deposits for the nine months ended September 30, 2021, was $147,780 thousand, compared to $82,114 thousand in 2020, indicating a significant increase of 79.9%[22]. - Total loans, net of deferred origination fees, increased to $1,340,159,000 as of September 30, 2021, compared to $1,299,421,000 at December 31, 2020, representing a growth of approximately 3.1%[47]. Income and Expense Analysis - Net interest income for the three months ended September 30, 2021, was $14,073 thousand, compared to $13,529 thousand for the same period in 2020, reflecting a year-over-year increase of 4.0%[14]. - Non-interest income for the nine months ended September 30, 2021, totaled $11,885 thousand, slightly up from $11,436 thousand in the same period of 2020, indicating a growth of 3.9%[14]. - Total non-interest expense for the three months ended September 30, 2021, was $12,029 thousand, an increase of 3.2% from $11,653 thousand in the same period of 2020[14]. - Non-interest expense for the nine months ended September 30, 2021, totaled $35,729,000, an increase of $1,888,000 compared to the same period in 2020[201]. Loan Loss Provisions - The provision for loan losses decreased to $306 thousand for the three months ended September 30, 2021, down from $976 thousand in the same period of 2020, a reduction of 68.7%[14]. - The provision for loan losses for the nine months ended September 30, 2021, was $239,000, significantly lower than the $2,165,000 provision for the same period in 2020[196]. - The allowance for loan losses was $5,828,000 as of September 30, 2021, slightly up from $5,728,000 at December 31, 2020[47]. Stock and Dividends - The company declared dividends of $0.19 per common share for the three months ended September 30, 2021, up from $0.18 in the same period of 2020[14]. - Common stock dividends paid were $6,963 thousand for the nine months ended September 30, 2021, compared to $6,747 thousand in 2020, reflecting a slight increase of 3.2%[22]. - The total balance of common stock outstanding decreased from 12,634,845 shares at June 30, 2021, to 12,433,328 shares at September 30, 2021, a reduction of 1.6%[19]. Impaired Loans and Credit Quality - The total recorded investment in impaired loans as of September 30, 2021, was $8,071,000, with an unpaid principal balance of $9,855,000, and a related allowance of $31,000[69]. - Non-accrual loans decreased to $2,629,000 as of September 30, 2021, down from $3,718,000 at December 31, 2020, indicating a reduction of about 29.3%[47]. - The fair value of impaired loans was recorded at $1,046,000 as of September 30, 2021, down from $3,439,000 as of December 31, 2020, indicating a significant reduction in impaired assets[137]. Tax and Regulatory Considerations - The effective tax rate for the three months ended September 30, 2021, was 17.6%, a slight decrease from 17.9% in the same period of 2020[97]. - The effective tax rate for the nine months ended September 30, 2021, was 18.1%, compared to 16.4% for the same period in 2020[202]. - The company is preparing for the implementation of ASU No. 2016-13, which will change the methodology for recognizing credit losses, potentially impacting future financial results[144]. COVID-19 Impact - LCNB's financial condition and results are subject to risks from the COVID-19 pandemic, which may impact liquidity, capital positions, and borrowers' ability to repay loans[151]. - The company continues to monitor the COVID-19 pandemic and expects to make future operational changes as the situation evolves[157].