LCNB Posts 486% Profit Jump in Q2

Core Insights - LCNB reported a significant GAAP earnings beat for Q2 2025, with earnings per share reaching $0.41, exceeding the analyst consensus estimate of $0.38 [1][6] - Total revenue for the quarter was $22.7 million, reflecting a year-over-year increase of 17.6% [3][6] - The bank demonstrated broad-based improvement in profitability metrics, particularly in net interest margins and returns [2][7] Financial Performance - Earnings per share (EPS) increased by 486% year-over-year from $0.07 in Q2 2024 to $0.41 in Q2 2025 [3][6] - Revenue rose from $19.3 million in Q2 2024 to $22.7 million in Q2 2025, marking a 17.6% increase [3][6] - Net interest margin improved from 2.86% in Q2 2024 to 3.47% in Q2 2025, a 0.61 percentage point increase [3][7] - Non-interest expense decreased by 12.4% from $17.8 million in Q2 2024 to $15.6 million in Q2 2025 [3][8] Business Overview - LCNB is a community-focused bank based in Ohio, offering a full range of financial products to individuals and small businesses [4] - The bank's strategy emphasizes local service, disciplined pricing, and expanding wealth and trust services [5] Notable Developments - The bank's net interest income rose by 15.1% year-over-year, while non-interest income increased by 28.6% due to stronger results from trust and wealth services [6] - Nonperforming loans increased to $4.8 million, or 0.28% of total loans, up from $3.0 million (0.17%) the previous year [9] - Shareholders' equity at the end of Q2 2025 was $263.5 million, with book value and tangible book value per share rising by 7.3% and 16%, respectively [12] Growth Trends - Net loans at the end of Q2 2025 were $1.71 billion, with loan origination activity at $88.8 million [11] - Bank deposits totaled $1.92 billion, while total assets under management slightly decreased to $4.18 billion [11] - The bank reported significant growth in cross-selling wealth and trust services, particularly in recently acquired branches [11] Future Outlook - Management expressed confidence in the bank's strong asset quality and enhanced profitability, positioning it for continued growth [13] - Key trends to monitor include loan and asset growth, changes in nonperforming loans, and deposit stability [14]