LCNB Corp. Reports Financial Results for the Three and Nine Months Ended September 30, 2024

Rhea-AI Summary

LCNB Corp. reported strong financial results for Q3 2024, with net income improving 11.4% year-over-year to $4.5 million. Adjusted net income increased 9.1% year-over-year to $4.8 million. The company's performance reflects the benefits of recent acquisitions, including Eagle Financial Bancorp and Cincinnati Bancorp. Key highlights include:

- LCNB Wealth Management assets up 24.4% year-over-year to a record $1.37 billion
- Tangible book value increased from $10.08 to $10.97 per share
- Total assets increased 18.4% to $2.35 billion
- Net loans increased 17.7% to $1.71 billion
- Total deposits increased 18.6% to $1.92 billion
- Total assets managed reached a record $4.25 billion

The company remains focused on integrating acquisitions, improving efficiencies, and pursuing opportunistic asset sales to enhance its balance sheet.

Positive

• Net income improved 11.4% year-over-year to $4.5 million in Q3 2024
• Adjusted net income increased 9.1% year-over-year to $4.8 million
• LCNB Wealth Management assets up 24.4% year-over-year to a record $1.37 billion
• Tangible book value increased from $10.08 to $10.97 per share
• Total assets increased 18.4% to $2.35 billion
• Net loans increased 17.7% to $1.71 billion
• Total deposits increased 18.6% to $1.92 billion
• Total assets managed reached a record $4.25 billion

Negative

• Earnings per share decreased from $0.37 to $0.31 in Q3 2024 compared to the same period last year
• Net interest margin decreased from 3.04% to 2.84% in Q3 2024 compared to the same period last year
• Nonperforming loans increased to $3.3 million (0.19% of total loans) from $261,000 (0.02% of total loans) year-over-year

Insights

Financial Analyst

LCNB Corp's Q3 2024 results demonstrate solid growth and integration progress following recent acquisitions. Key highlights include:

• Net income increased 11.4% year-over-year to $4.5 million
• Adjusted net income rose 9.1% year-over-year to $4.8 million
• LCNB Wealth Management assets grew 24.4% to a record $1.37 billion
• Tangible book value increased from $10.08 to $10.97 per share

The company's focus on integrating recent acquisitions and improving efficiencies is paying off earlier than expected. The growth in wealth management assets and increased market position suggest potential for future revenue expansion. However, investors should note the slight compression in net interest margin and the increase in non-performing loans, primarily due to one commercial real estate relationship. Overall, LCNB's strategic moves appear to be positioning the company for long-term growth, but careful monitoring of asset quality will be crucial.

Market Research Analyst

LCNB's Q3 results reveal a company in transition, successfully leveraging recent acquisitions to drive growth. The 18.4% increase in total assets and 17.7% growth in net loans year-over-year demonstrate significant expansion. Notably, the 18.6% rise in total deposits, with 8.5% coming from organic growth, indicates strong customer confidence and market penetration.

The record $4.25 billion in assets under management represents a substantial 31.6% increase from the previous year, highlighting the potential of LCNB's wealth management division. This growth, combined with the company's focus on integrating new customers from acquired entities, suggests a robust pipeline for cross-selling opportunities and revenue diversification.

While the increase in non-performing loans warrants attention, the overall asset quality remains manageable. The company's proactive approach to potential loan sales and balance sheet optimization indicates a strategic focus on long-term stability and growth. Investors should view LCNB as a regional bank with expanding capabilities and market share, poised for potential outperformance in the evolving banking landscape.

Q3 2024 net income improved 11.4% year-over-year to $4.5 million, producing a 0.76% return on average assets

Q3 2024 net income adjusted for merger-related costs increased 9.1% year-over-year to $4.8 million and up 16.8% from Q2 2024

LCNB Wealth Management assets up 24.4% year-over-year to a record $1.37 billion and have increased 3.9% from June 30, 2024

Tangible book value increased from $10.08 per share at June 30, 2024 to $10.97 at September 30, 2024

LEBANON, Ohio--(BUSINESS WIRE)-- LCNB Corp. ("LCNB") (NASDAQ: LCNB) today announced financial results for the three months and nine months ended September 30, 2024.

Commenting on the financial results, LCNB President and Chief Executive Officer Eric Meilstrup said, “Our 2024 third quarter results are encouraging and reflect the growing benefits of the April 2024 Eagle Financial Bancorp, Inc. (“EFBI” or “Eagle”) acquisition and the November 2023 Cincinnati Bancorp, Inc. (“Cincinnati Federal”) acquisition. I am pleased to report that LCNB returned to year-over-year growth in both net income and adjusted net income, which was one quarter ahead of our plan. This is a testament to the hard work of the LCNB team, the growing contribution of our new operating model, and the multi-year opportunities we are pursuing to drive value for our shareholders.”

Mr. Meilstrup continued, “Over the near-term, we continue to focus on fully integrating the Eagle and Cincinnati Federal acquisitions, improving efficiencies, and pursuing opportunistic asset sales that we believe will further enhance our balance sheet and earn a quick payback. As we look to 2025 and beyond, we believe there are significant opportunities to leverage the continued success and growth of LCNB Wealth Management by offering our wealth management solutions to more customers across our growing footprint, as well as to the Eagle and Cincinnati Federal customers that we believe will benefit from our local, personalized, and proven offerings.”

“Despite the complex banking environment, 2024 is proving to be a transformative year for LCNB, marked by the integration of two strategic acquisitions that have increased and strengthened our market position. These moves are a testament to our resilience, commitment to growth, and unwavering focus on long-term value creation. We remain confident in our ability to adapt, innovate, and lead, and we are excited about the opportunities ahead as we continue to build a stronger, more diversified business for the future,” concluded Mr. Meilstrup.

Income Statement

Net income for the 2024 third quarter was $4.5 million, compared to net income of $4.1 million for the same period last year. Earnings per basic and diluted share for the 2024 third quarter were $0.31, compared to $0.37 for the same period last year. Net income for the nine-month period ended September 30, 2024 was $7.4 million, compared to $12.9 million for the same period last year. Earnings per basic and diluted share for the nine-month period ended September 30, 2024 was $0.53, compared to $1.16 for the same period last year.

Adjusted net income for the 2024 third quarter was $4.8 million, or $0.34 per basic and diluted share, compared to $4.4 million, or $0.40 per basic and diluted share, for the same period last year. Adjusted net income for the nine months ended September 30, 2024 was $11.4 million, or $0.83 per basic and diluted share, compared to $13.6 million, or $1.22 per basic and diluted share, in the prior year period.

Net interest income for the three months ended September 30, 2024 was $15.0 million, compared to $13.6 million for the comparable period in 2023. Net interest income for the nine-month period ended September 30, 2024 was $44.1 million, as compared to $41.7 million in the same period last year. An increase in interest income from loans, due to a higher volume of average loans outstanding and an increase in average rates earned on these loans, was partially offset by higher average balances in interest-bearing demand and money market deposits, IRA and time certificates, and long-term debt and an increase in rates paid for these liabilities. For the 2024 third quarter, LCNB’s tax equivalent net interest margin was 2.84%, compared to 3.04% for the same period last year. Net interest margin for the nine-month period ended September 30, 2024 was 2.81%, as compared to 3.20% in the same period last year.

Non-interest income for the three months ended September 30, 2024, was $6.4 million, compared to $3.6 million for the same period last year. For the nine months ended September 30, 2024 non-interest income increased $3.6 million, or by 33.4%, to $14.4 million, compared to $10.8 million for the same period last year. The increase in non-interest income for both the three- and nine-month periods was primarily due to net gains from sales of loans. In addition, non-interest income for both the three- and nine-month periods benefitted from increased: fiduciary income, service charges, and bank-owned life insurance income.

Non-interest expense for the three months ended September 30, 2024 was $15.4 million, compared to $12.2 million for the same period last year. The $3.1 million increase was primarily due to higher personnel and operating expenses. For the nine months ended September 30, 2024, non-interest expense was $11.8 million higher than the comparable period in 2023, partially due to an increase of $5.1 million in salaries and employee benefit costs, a $782,000 increase in FDIC insurance premiums, and a $2.6 million increase in merger-related expenses.

Capital Allocation

During the nine months ended September 30, 2024, LCNB did not repurchase any of its outstanding shares. At September 30, 2024, LCNB had 315,047 shares remaining under its share repurchase program.

For the third quarter ended September 30, 2024, LCNB paid $0.22 per share in dividends, a 4.8% increase from $0.21 per share in the third quarter of last year. Year-to-date, LCNB has paid $0.66 per share in dividends, compared to $0.63 per share for the nine months of last year.

Balance Sheet

Total assets at September 30, 2024 increased 18.4%, to $2.35 billion, from $1.98 billion at September 30, 2023. Net loans at September 30, 2024 increased 17.7%, to $1.71 billion, compared to $1.45 billion at September 30, 2023. The year-over-year increase resulted primarily from the completion of the Cincinnati Federal and Eagle acquisitions. Total loans at September 30, 2024, not including loans acquired from the Cincinnati Federal and Eagle transactions, were flat with the same period a year ago. During the nine months ended September 30, 2024, the bank originated $306.5 million in loans of which $100.4 million were sold into the secondary market.

Loans held for sale totaled $35.7 million at September 30, 2024. $31.4 million of the loans held for sale balance represents acquired loans. LCNB entered into a letter of intent to sell the acquired balance of loans held for sale during the fourth quarter of 2024 and, once complete, anticipates the proceeds will be used for general corporate purposes, which may include supporting loan growth, paying down higher cost funding sources, or adding to liquidity balances.

Total deposits at September 30, 2024 increased 18.6% to $1.92 billion, compared to $1.62 billion at September 30, 2023. Not including the Cincinnati Federal and Eagle acquisitions, total deposits increased 8.5% organically, or by $138 million, from September 30, 2023.

Assets Under Management

Total assets managed at September 30, 2024 were a record $4.25 billion, compared to $3.23 billion at September 30, 2023. The year-over-year increase in total assets managed was primarily due to the Cincinnati Federal and Eagle acquisitions and organic growth in LCNB total assets, trust and investments, mortgage loans serviced, cash management, and brokerage accounts. Organically, trust and investments and brokerage accounts increased due to a higher number of new LCNB Wealth Management customer accounts and an increase in the fair value of managed assets. Mortgage loans serviced increased primarily due to the Cincinnati Federal acquisition.

Asset Quality

For the 2024 third quarter, LCNB recorded a provision for credit losses of $660,000, compared to a recovery of credit losses of $114,000 for the 2023 third quarter. For the nine months ended September 30, 2024, LCNB recorded a total provision for credit losses of $1.3 million, compared to a total recovery of credit losses of $141,000 for the nine months ended September 30, 2023.

Net charge-offs for the 2024 third quarter were $84,000, or 0.02% of average loans, compared to net charge-offs of $33,000, or 0.01% of average loans, annualized, for the same period last year. For the 2024 nine-month period, net charge-offs were $147,000, or 0.01% of average loans, compared to net charge-offs of $82,000, or 0.01% of average loans, for the 2023 nine-month period.

Total nonperforming loans, which include non-accrual loans and loans past due 90 days or more and still accruing interest, were $3.3 million, or 0.19% of total loans, at September 30, 2024, compared to $261,000, or 0.02% of total loans, at September 30, 2023. The year-over-year increase in nonaccrual loans was primarily due to one commercial real estate relationship, representing a balance of $2.6 million. LCNB does not foresee a loss on this loan as it is deemed to have adequate provision based on management’s current review of the property value. The nonperforming assets to total assets ratio was 0.14% at September 30, 2024, compared to 0.01% at September 30, 2023.

About LCNB Corp.

LCNB Corp. is a financial holding company headquartered in Lebanon, Ohio. Through its subsidiary, LCNB National Bank (the “Bank”), it serves customers and communities in Southwest and South-Central Ohio and Northern Kentucky. A financial institution with a long tradition for building strong relationships with customers and communities, the Bank offers convenient banking locations in Butler, Clermont, Clinton, Fayette, Franklin, Hamilton, Montgomery, Preble, Ross, and Warren Counties, Ohio. The Bank also provides community-oriented banking services to customers in Northern Kentucky through a bank office in Boone County, Kentucky. The Bank continually strives to exceed customer expectations and provides an array of services for all personal and business banking needs including checking, savings, online banking, personal lending, business lending, agricultural lending, business support, deposit and treasury, investment services, trust and IRAs and stock purchases. LCNB Corp. common shares are traded on the NASDAQ Capital Market Exchange® under the symbol “LCNB.” Learn more about LCNB Corp. at www.lcnb.com.

Forward-Looking Statements

Certain statements made in this news release regarding LCNB’s financial condition, results of operations, plans, objectives, future performance and business, are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements are identified by the fact they are not historical facts and include words such as “anticipate”, “could”, “may”, “feel”, “expect”, “believe”, “plan”, and similar expressions. Please refer to LCNB’s Annual Report on Form 10-K for the year ended December 31, 2023, as well as its other filings with the SEC, for a more detailed discussion of risks, uncertainties and factors that could cause actual results to differ from those discussed in the forward-looking statements.

These forward-looking statements reflect management's current expectations based on all information available to management and its knowledge of LCNB’s business and operations. Additionally, LCNB’s financial condition, results of operations, plans, objectives, future performance and business are subject to risks and uncertainties that may cause actual results to differ materially. These factors include, but are not limited to:

1.

the success, impact, and timing of the implementation of LCNB’s business strategies;

2.

LCNB’s ability to integrate recent and future acquisitions, including Cincinnati Federal and EFBI, may be unsuccessful or may be more difficult, time-consuming, or costly than expected;

3.

LCNB may incur increased loan charge-offs in the future and the allowance for credit losses may be inadequate;

4.

LCNB may face competitive loss of customers;

5.

changes in the interest rate environment, which may include further interest rate increases, may have results on LCNB’s operations materially different from those anticipated by LCNB’s market risk management functions;

6.

changes in general economic conditions and increased competition could adversely affect LCNB’s operating results;

7.

changes in regulations and government policies affecting bank holding companies and their subsidiaries, including changes in monetary policies, could negatively impact LCNB’s operating results;

8.

LCNB may experience difficulties growing loan and deposit balances;

9.

United States trade relations with foreign countries could negatively impact the financial condition of LCNB's customers, which could adversely affect LCNB 's operating results and financial condition;

10.

global or domestic geopolitical relations and/or conflicts could create financial market uncertainty and have negative impacts on commodities and currency, which could adversely affect LCNB's operating results and financial condition;

11.

difficulties with technology or data security breaches, including cyberattacks or widespread outages, could negatively affect LCNB's ability to conduct business and its relationships with customers, vendors, and others;

12.

adverse weather events and natural disasters and global and/or national epidemics could negatively affect LCNB’s customers given its concentrated geographic scope, which could impact LCNB’s operating results; and

13.

government intervention in the U.S. financial system, including the effects of legislative, tax, accounting, and regulatory actions and reforms, including the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Jumpstart Our Business Startups Act, the Consumer Financial Protection Bureau, the capital ratios of Basel III as adopted by the federal banking authorities, changes in deposit insurance premium levels, and any such future regulatory actions or reforms.

Forward-looking statements made herein reflect management's expectations as of the date such statements are made. Such information is provided to assist shareholders and potential investors in understanding current and anticipated financial operations of LCNB and is included pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. LCNB undertakes no obligation to update any forward-looking statement to reflect events or circumstances that arise after the date such statements are made.

Exhibit 99.2
LCNB Corp. and Subsidiaries
Financial Highlights
(Dollars in thousands, except per share amounts)
(Unaudited)
		Three Months Ended																				Nine Months Ended
		9/30/2024				6/30/2024				3/31/2024				12/31/2023				9/30/2023				9/30/2024				9/30/2023
Condensed Income Statement
Interest income		$	26,398				26,965				24,758				23,310				19,668				78,121				56,289
Interest expense			11,428				11,748				10,863				8,651				6,097				34,039				14,599
Net interest income			14,970				15,217				13,895				14,659				13,571				44,082				41,690
Provision for (recovery of) credit losses			660				528				125				2,218				(114	)			1,313				(141	)
Net interest income after provision for (recovery of) credit losses			14,310				14,689				13,770				12,441				13,685				42,769				41,831
Non-interest income			6,407				4,080				3,929				4,606				3,578				14,416				10,805
Non-interest expense			15,387				17,825				15,472				17,576				12,244				48,684				36,847
Income (loss) before income taxes			5,330				944				2,227				(529	)			5,019				8,501				15,789
Provision for (benefit from) income taxes			798				19				312				(236	)			949				1,129				2,868
Net income (loss)		$	4,532				925				1,915				(293	)			4,070				7,372				12,921
Supplemental Income Statement Information
Accretion income on acquired loans		$	800				1,248				776				410				—				2,824				75
Amortization expenses on acquired interest-bearing liabilities		$	378				638				459				309				—				1,475				—
Tax-equivalent net interest income		$	15,013				15,256				13,933				14,703				13,617				44,202				41,829
Pre-provision, pre-tax net income		$	5,990				1,472				2,352				1,689				4,905				9,814				15,648
Per Share Data
Dividends per share		$	0.22				0.22				0.22				0.22				0.21				0.66				0.63
Basic earnings (loss) per common share		$	0.31				0.07				0.15				(0.02	)			0.37				0.53				1.16
Diluted earnings (loss) per common share		$	0.31				0.07				0.15				(0.02	)			0.37				0.53				1.16
Book value per share		$	17.95				17.33				17.67				17.86				18.10				17.95				18.10
Tangible book value per share		$	10.97				10.08				11.26				11.42				12.72				10.97				12.72
Weighted average common shares outstanding:
Basic			14,103,358				14,033,264				13,112,302				12,378,289				11,038,720				13,761,582				11,094,185
Diluted			14,103,358				14,033,264				13,112,302				12,378,289				11,038,720				13,761,582				11,094,185
Shares outstanding at period end			14,110,210				14,151,755				13,224,276				13,173,569				11,123,382				14,110,210				11,123,382
Selected Financial Ratios
Return on average assets			0.76	%			0.15	%			0.34	%			(0.05	)%			0.82	%			0.42	%			0.89	%
Return on average equity			7.23	%			1.53	%			3.28	%			(0.53	)%			7.92	%			4.06	%			8.49	%
Return on average tangible common equity			9.49	%			2.02	%			4.39	%			(0.72	)%			11.21	%			5.37	%			12.04	%
Dividend payout ratio			70.97	%			314.29	%			146.67	%			NM				56.76	%			124.53	%			54.31	%
Net interest margin (tax equivalent)			2.84	%			2.86	%			2.72	%			2.99	%			3.04	%			2.81	%			3.20	%
Efficiency ratio (tax equivalent)			71.83	%			92.19	%			86.62	%			91.02	%			71.21	%			83.05	%			70.01	%
Selected Balance Sheet Items
Cash and cash equivalents		$	39,374			$	34,872			$	32,951			$	39,723				43,422
Debt and equity securities			313,545				312,241				306,775				318,723				309,094
Loans:
Commercial and industrial		$	119,079			$	125,703			$	122,229			$	120,411				125,751
Commercial, secured by real estate			1,105,405				1,117,798				1,099,601				1,107,556				981,787
Residential real estate			459,740				458,949				398,250				459,073				313,286
Consumer			22,088				22,912				24,137				25,578				27,018
Agricultural			13,113				11,685				12,647				10,952				11,278
Other, including deposit overdrafts			496				233				73				82				80
Deferred net origination fees			(861	)			(533	)			(583	)			(181	)			(796	)
Loans, gross			1,719,060				1,736,747				1,656,354				1,723,471				1,458,404
Less allowance for credit losses			11,867				11,270				10,557				10,525				7,932
Loans, net		$	1,707,193			$	1,725,477			$	1,645,797			$	1,712,946				1,450,472
Loans held for sale		$	35,687				44,002				75,581				—				—

NM - Not Meaningful

		Three Months Ended																				Nine Months Ended
		9/30/2024				6/30/2024				3/31/2024				12/31/2023				9/30/2023				9/30/2024				9/30/2023
Selected Balance Sheet Items, continued
Allowance for Credit Losses on Loans:
Allowance for credit losses, beginning of period		$	11,270				10,557				10,525				7,932				7,956
Fair value adjustment for purchased credit deteriorated loans			—				189				—				493				—
Provision for credit losses on loans			681				542				77				2,203				9
Losses charged off			(122	)			(87	)			(78	)			(126	)			(57	)
Recoveries			38				69				33				23				24
Allowance for credit losses, end of period		$	11,867				11,270				10,557				10,525				7,932
Total earning assets		$	2,044,318				2,058,110				1,971,130				2,045,382			$	1,787,796
Total assets			2,346,908				2,371,313				2,283,151				2,291,592				1,981,668
Total deposits			1,917,005				1,943,060				1,858,493				1,824,389				1,616,890
Short-term borrowings			—				—				10,000				97,395				30,000
Long-term debt			155,662				162,150				162,638				113,123				112,641
Total shareholders’ equity			253,246				245,214				233,663				235,303				201,349
Equity to assets ratio			10.79	%			10.34	%			10.23	%			10.27	%			10.16	%
Loans to deposits ratio			89.67	%			89.38	%			89.12	%			94.47	%			90.20	%
Tangible common equity (TCE)		$	154,728				142,679				145,850				146,999			$	141,508
Tangible common assets (TCA)			2,248,390				2,268,778				2,195,338				2,203,288				1,921,827
TCE/TCA			6.88	%			6.29	%			6.64	%			6.67	%			7.36	%
Selected Average Balance Sheet Items
Cash and cash equivalents		$	39,697				39,396				51,366				49,436				36,177				43,486				34,234
Debt and equity securities			314,255				309,668				310,771				310,274				313,669				311,551				320,706
Loans, including loans held for sale		$	1,770,330				1,818,253				1,722,568				1,622,911				1,451,153				1,770,383				1,415,719
Less allowance for credit losses on loans			11,281				11,386				10,523				8,826				7,958				11,064				7,782
Net loans		$	1,759,049				1,806,867				1,712,045				1,614,085				1,443,195				1,759,319				1,407,937
Total earning assets, including loans held for sale		$	2,099,954			$	2,142,064			$	2,056,656			$	1,952,121				1,775,713				2,099,536				1,747,476
Total assets			2,365,676				2,404,782				2,294,766				2,182,477				1,971,269				2,355,113				1,940,591
Total deposits			1,936,601				1,965,987				1,824,546				1,759,677				1,610,508				1,909,146				1,599,668
Short-term borrowings			11				11,291				65,052				64,899				63,018				25,358				78,916
Long-term debt			158,419				162,555				150,177				115,907				72,550				157,056				36,878
Total shareholders’ equity			249,370				243,927				235,119				220,678				203,967				242,829				203,496
Equity to assets ratio			10.54	%			10.14	%			10.25	%			10.11	%			10.35	%			10.31	%			10.49	%
Loans to deposits ratio			91.41	%			92.49	%			94.41	%			92.23	%			90.11	%			92.73	%			88.50	%
Asset Quality
Net charge-offs		$	84				18				45				102				33				147				82
Other real estate owned			—				—				—				—				—				—				—
Non-accrual loans		$	3,001				2,845				2,719				80				85				3,001				85
Loans past due 90 days or more and still accruing			283				159				524				72				176				283				176
Total nonperforming loans		$	3,284				3,004				3,243				152				261				3,284				261
Net charge-offs to average loans			0.02	%			—	%			0.01	%			0.02	%			0.01	%			0.01	%			0.01	%
Allowance for credit losses on loans to total loans			0.69	%			0.65	%			0.64	%			0.61	%			0.54	%
Nonperforming loans to total loans			0.19	%			0.17	%			0.20	%			0.01	%			0.02	%
Nonperforming assets to total assets			0.14	%			0.13	%			0.14	%			0.01	%			0.01	%

		Three Months Ended																				Nine Months Ended
		9/30/2024				6/30/2024				3/31/2024				12/31/2023				9/30/2023				9/30/2024				9/30/2023
Assets Under Management
LCNB Corp. total assets		$	2,346,908				2,371,313				2,283,151				2,291,592				1,981,668
Trust and investments (fair value)			933,341				897,746				890,800				806,770				731,342
Mortgage loans serviced			366,175				422,951				386,490				391,800				146,483
Cash management			165,218				93,842				13,314				2,375				2,445
Brokerage accounts (fair value)			435,611				419,646				411,211				392,390				368,854
Total assets managed		$	4,247,253				4,205,498				3,984,966				3,884,927				3,230,792
Reconciliation of Net Income Less Tax-Effected Merger-Related Costs
Net income (loss)		$	4,532				925				1,915				(293	)			4,070				7,372				12,921
Merger expenses			281				2,320				775				3,914				302				3,376				742
Provision for credit losses on non-PCD loans			—				763				—				1,722				—				763				—
Loss on sale of below-market acquired loans			—				843				—				—				—				843				—
Tax effect			(48	)			(773	)			(90	)			(1,102	)			(3	)			(911	)			(83	)
Adjusted net income		$	4,765				4,078				2,600				4,241				4,369				11,443				13,580
Adjusted basic and diluted earnings per share		$	0.34			$	0.29			$	0.20			$	0.34				0.40				0.83				1.22
Adjusted return on average assets			0.80	%			0.68	%			0.46	%			0.77	%			0.88	%			0.65	%			0.94	%
Adjusted return on average equity			7.60	%			6.72	%			4.45	%			7.62	%			8.50	%			6.29	%			8.92	%

		Three Months Ended September 30,																								Three Months Ended June 30,
		2024												2023												2024
		Average				Interest				Average				Average				Interest				Average				Average				Interest				Average
		Outstanding				Earned/				Yield/				Outstanding				Earned/				Yield/				Outstanding				Earned/				Yield/
		Balance				Paid				Rate				Balance				Paid				Rate				Balance				Paid				Rate
Loans (1)		$	1,770,330				24,342				5.47	%		$	1,451,153				17,875				4.89	%		$	1,818,253				24,836				5.49	%
Interest-bearing demand deposits			15,369				209				5.41	%			10,891				152				5.54	%			14,143				215				6.11	%
Federal Reserve Bank stock			6,393				(1	)			(0.06	)%			4,652				—				—	%			6,248				180				11.59	%
Federal Home Loan Bank stock			20,710				464				8.91	%			7,007				134				7.59	%			20,152				367				7.32	%
Investment securities:
Equity securities			5,026				40				3.17	%			3,382				38				4.46	%			4,985				39				3.15	%
Debt securities, taxable			262,220				1,181				1.79	%			274,494				1,296				1.87	%			259,768				1,183				1.83	%
Debt securities, non-taxable (2)			19,906				206				4.12	%			24,134				219				3.60	%			18,515				184				4.00	%
Total earnings assets			2,099,954				26,441				5.01	%			1,775,713				19,714				4.40	%			2,142,064				27,004				5.07	%
Non-earning assets			277,003												203,514												274,104
Allowance for credit losses			(11,281	)											(7,958	)											(11,386	)
Total assets		$	2,365,676											$	1,971,269											$	2,404,782
Interest-bearing demand and money market deposits		$	585,823				3,006				2.04	%		$	541,487				2,298				1.68	%		$	648,772				3,575				2.22	%
Savings deposits			367,045				274				0.30	%			379,515				129				0.13	%			372,240				307				0.33	%
IRA and time certificates			538,070				6,298				4.66	%			230,030				1,999				3.45	%			493,297				5,808				4.74	%
Short-term borrowings			11				—				0.00	%			63,018				830				5.23	%			11,291				181				6.45	%
Long-term debt			158,419				1,850				4.65	%			72,550				841				4.60	%			162,555				1,877				4.64	%
Total interest-bearing liabilities			1,649,368				11,428				2.76	%			1,286,600				6,097				1.88	%			1,688,155				11,748				2.80	%
Demand deposits			445,663												459,476												451,678
Other liabilities			21,275												21,226												21,022
Equity			249,370												203,967												243,927
Total liabilities and equity		$	2,365,676											$	1,971,269											$	2,404,782
Net interest rate spread (3)											2.25	%											2.52	%											2.27	%
Net interest income and net interest margin on a taxable-equivalent basis (4)							15,013				2.84	%							13,617				3.04	%							15,256				2.86	%
Ratio of interest-earning assets to interest-bearing liabilities			127.32	%											138.02	%											126.89	%

	(1)	Includes non-accrual loans and loans held for sale
	(2)	Income from tax-exempt securities is included in interest income on a taxable-equivalent basis. Interest income has been divided by a factor comprised of the complement of the incremental tax rate of 21%.
	(3)	The net interest spread is the difference between the average rate on total interest-earning assets and interest-bearing liabilities.
	(4)	The net interest margin is the taxable-equivalent net interest income divided by average interest-earning assets.

		For the Nine Months Ended September 30,
		2024									2023
		Average				Interest		Average			Average				Interest		Average
		Outstanding				Earned/		Yield/			Outstanding				Earned/		Yield/
		Balance				Paid		Rate			Balance				Paid		Rate
Loans (1)		$	1,770,383			71,860		5.42	%		$	1,415,719			50,781		4.80	%
Interest-bearing demand deposits			17,602			747		5.67	%			11,051			453		5.48	%
Federal Reserve Bank stock			6,051			176		3.89	%			4,652			140		4.02	%
Federal Home Loan Bank stock			19,040			1,172		8.22	%			6,840			317		6.20	%
Investment securities:
Equity securities			5,002			119		3.18	%			3,698			113		4.09	%
Debt securities, taxable			262,360			3,596		1.83	%			280,998			3,962		1.89	%
Debt securities, non-taxable (2)			19,098			571		3.99	%			24,518			662		3.61	%
Total earnings assets			2,099,536			78,241		4.98	%			1,747,476			56,428		4.32	%
Non-earning assets			266,641									200,897
Allowance for credit losses			(11,064	)								(7,782	)
Total assets		$	2,355,113								$	1,940,591
Interest-bearing demand and money market deposits		$	625,785			10,498		2.24	%		$	522,896			5,140		1.31	%
Savings deposits			369,104			787		0.28	%			396,785			402		0.14	%
IRA and time certificates			467,425			16,173		4.62	%			210,407			4,675		2.97	%
Short-term borrowings			25,358			1,116.00		5.88	%			78,916			3,142		5.32	%
Long-term debt			157,056			5,465		4.65	%			36,878			1,240		4.50	%
Total interest-bearing liabilities			1,644,728			34,039		2.76	%			1,245,882			14,599		1.57	%
Demand deposits			446,832									469,580
Other liabilities			20,724									21,633
Equity			242,829									203,496
Total liabilities and equity		$	2,355,113								$	1,940,591
Net interest rate spread (3)								2.22	%								2.75	%
Net interest income and net interest margin on a taxable-equivalent basis (4)						44,202		2.81	%						41,829		3.20	%
Ratio of interest-earning assets to interest-bearing liabilities			127.65	%								140.26	%

	(1)	Includes non-accrual loans and loans held for sale
	(2)	Income from tax-exempt securities is included in interest income on a taxable-equivalent basis. Interest income has been divided by a factor comprised of the complement of the incremental tax rate of 21%.
	(3)	The net interest spread is the difference between the average rate on total interest-earning assets and interest-bearing liabilities.
	(4)	The net interest margin is the taxable-equivalent net interest income divided by average interest-earning assets.

Exhibit 99.2
LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited, dollars in thousands)
		September 30, 2024				December 31, 2023
		Unaudited				Audited
ASSETS:
Cash and due from banks		$	27,661			$	36,535
Interest-bearing demand deposits			11,713				3,188
Total cash and cash equivalents			39,374				39,723
Investment securities:
Equity securities with a readily determinable fair value, at fair value		$	1,388			$	1,336
Equity securities without a readily determinable fair value, at cost			3,666				3,666
Debt securities, available-for-sale, at fair value			262,622				276,601
Debt securities, held-to-maturity, at cost, net of allowance for credit losses of $7 and $5 at September 30, 2024 and December 31, 2023, respectively			18,730				16,858
Federal Reserve Bank stock, at cost			6,429				5,086
Federal Home Loan Bank stock, at cost			20,710				15,176
Loans, net of allowance for credit losses of $11,867 and $10,525 at September 30, 2024 and December 31, 2023, respectively			1,707,193				1,712,946
Loans held for sale			35,687				—
Premises and equipment, net			41,233				36,302
Operating lease right-of-use assets			5,853				6,000
Goodwill			90,209				79,509
Core deposit and other intangibles, net			11,605				9,494
Bank-owned life insurance			53,650				49,847
Interest receivable			9,450				8,405
Other assets, net			39,109				30,643
TOTAL ASSETS			2,346,908				2,291,592
LIABILITIES:
Deposits:
Noninterest-bearing		$	446,626			$	462,267
Interest-bearing			1,470,379				1,362,122
Total deposits			1,917,005				1,824,389
Short-term borrowings			—				97,395
Long-term debt			155,662				113,123
Operating lease liabilities			6,152				6,261
Accrued interest and other liabilities			14,843				15,121
TOTAL LIABILITIES			2,093,662				2,056,289
COMMITMENTS AND CONTINGENT LIABILITIES			—				—
SHAREHOLDERS' EQUITY:
Preferred shares – no par value, authorized 1,000,000 shares, none outstanding			—				—
Common shares – no par value; authorized 19,000,000 shares; issued 17,321,593 and 16,384,952 shares at September 30, 2024 and December 31, 2023, respectively; outstanding 14,110,210 and 13,173,569 shares at September 30, 2024 and December 31, 2023, respectively			186,716				173,637
Retained earnings			138,325				140,017
Treasury shares at cost, 3,211,383 and 3,211,383 shares at September 30, 2024 and December 31, 2023, respectively			(56,015	)			(56,015	)
Accumulated other comprehensive loss, net of taxes			(15,780	)			(22,336	)
TOTAL SHAREHOLDERS' EQUITY			253,246				235,303
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		$	2,346,908			$	2,291,592

Exhibit 99.2
LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2024				2023				2024				2023
INTEREST INCOME:
Interest and fees on loans		$	24,342				17,875			$	71,860				50,781
Dividends on equity securities:
With a readily determinable fair value			10				9				28				34
Without a readily determinable fair value			30				29				91				79
Interest on debt securities:
Taxable			1,181				1,296				3,596				3,962
Non-taxable			163				173				451				523
Other investments			672				286				2,095				910
TOTAL INTEREST INCOME			26,398				19,668				78,121				56,289
INTEREST EXPENSE:
Interest on deposits			9,578				4,426				27,458				10,217
Interest on short-term borrowings			—				830				1,116				3,142
Interest on long-term debt			1,850				841				5,465				1,240
TOTAL INTEREST EXPENSE			11,428				6,097				34,039				14,599
NET INTEREST INCOME			14,970				13,571				44,082				41,690
PROVISION FOR (RECOVERY OF) CREDIT LOSSES			660				(114	)			1,313				(141	)
NET INTEREST INCOME AFTER PROVISION FOR (RECOVERY OF) CREDIT LOSSES			14,310				13,685				42,769				41,831
NON-INTEREST INCOME:
Fiduciary income			2,097				1,736				6,137				5,263
Service charges and fees on deposit accounts			1,899				1,397				4,820				4,324
Net losses from sales of debt securities, available-for-sale			—				—				(214	)			—
Bank-owned life insurance income			654				282				1,313				830
Net gains from sales of loans			1,625				29				2,197				38
Other operating income			132				134				163				350
TOTAL NON-INTEREST INCOME			6,407				3,578				14,416				10,805
NON-INTEREST EXPENSE:
Salaries and employee benefits			9,025				7,044				26,585				21,454
Equipment expenses			420				397				1,205				1,175
Occupancy expense, net			966				805				2,915				2,367
State financial institutions tax			505				396				1,409				1,189
Marketing			320				223				704				735
Amortization of intangibles			304				113				838				336
FDIC insurance premiums, net			547				224				1,445				663
Contracted services			807				671				2,435				1,978
Merger-related expenses			281				302				3,376				742
Other non-interest expense			2,212				2,069				7,772				6,208
TOTAL NON-INTEREST EXPENSE			15,387				12,244				48,684				36,847
INCOME BEFORE INCOME TAXES			5,330				5,019				8,501				15,789
PROVISION FOR INCOME TAXES			798				949				1,129				2,868
NET INCOME		$	4,532				4,070			$	7,372				12,921
Earnings per common share:
Basic			0.31				0.37				0.53				1.16
Diluted			0.31				0.37				0.53				1.16
Weighted average common shares outstanding:
Basic			14,103,358				11,038,720				13,761,582				11,094,185
Diluted			14,103,358				11,038,720				13,761,582				11,094,185

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241021950586/en/

Company Contact:

Eric J. Meilstrup

President and Chief Executive Officer

LCNB National Bank

(513) 932-1414

shareholderrelations@lcnb.com

Investor and Media Contact:

Andrew M. Berger

Managing Director

SM Berger & Company, Inc.

(216) 464-6400

andrew@smberger.com

Source: LCNB Corp.

FAQ

What was LCNB Corp's net income for Q3 2024?

LCNB Corp's net income for Q3 2024 was $4.5 million, an 11.4% improvement year-over-year.

How much did LCNB's total assets increase in Q3 2024?

LCNB's total assets increased 18.4% to $2.35 billion in Q3 2024 compared to the same period last year.

What was the growth in LCNB Wealth Management assets?

LCNB Wealth Management assets grew 24.4% year-over-year to a record $1.37 billion in Q3 2024.

How did LCNB's net loans change in Q3 2024?

LCNB's net loans increased 17.7% to $1.71 billion in Q3 2024 compared to the same period last year.

What was LCNB's dividend payment for Q3 2024?

LCNB paid $0.22 per share in dividends for Q3 2024, a 4.8% increase from $0.21 per share in Q3 2023.