LCNB (LCNB) Q2 2025 earnings summary

Executive summary

• Net income for Q2 2025 was $5.9M ($0.41 EPS), up from $0.9M ($0.07 EPS) in Q2 2024; six-month net income was $10.5M ($0.74 EPS), up from $2.8M ($0.21 EPS) year-over-year.

• Net interest margin expanded to 3.47% in Q2 2025 from 2.86% in Q2 2024, reflecting improved balance sheet management and loan originations.

• Noninterest income increased 28.6% year-over-year, driven by gains from loan sales and higher fiduciary and service fee income.

• Asset quality remains strong, with low net charge-offs and a stable provision for credit losses.

• Results in 2024 were impacted by merger-related expenses from the EFBI and CNNB acquisitions.

Financial highlights

• Net interest income for Q2 2025 was $17.5M, up from $15.2M in Q2 2024; for the six months, $33.8M vs. $29.1M year-over-year.

• Noninterest expense for Q2 2025 was $15.6M, down from $17.8M in Q2 2024, mainly due to lower merger-related costs.

• Return on average assets was 1.04% for Q2 2025, up from 0.15% in Q2 2024.

• Book value per share increased to $18.59 at June 30, 2025, from $17.33 a year earlier.

• Total deposits increased 2.19% to $1.92B at June 30, 2025; long-term debt decreased by $50.2M to $105M.

Outlook and guidance

• Management expects marketing expenses to normalize through the remainder of the year.

• No liquidity or operational problems anticipated; management believes adequate liquidity is available for short- and long-term needs.

• Management expects the economic environment to remain fluid but believes the company is well positioned for long-term growth due to strong asset quality and profitability.

• Continued focus on leveraging recent acquisitions and expanding wealth management services in new markets.