LCNB (LCNB) Q3 2024 earnings summary

Executive summary

• Q3 2024 net income was $4.53M ($0.31 EPS), up 11.4% year-over-year, with adjusted net income at $4.8M; YTD net income was $7.37M ($0.53 EPS), down from $12.92M YTD 2023 due to acquisition-related expenses.

• Integration of Eagle Financial Bancorp (April 2024) and Cincinnati Bancorp (Nov 2023) contributed to growth, higher average loan and deposit balances, and market position.

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

• Wealth Management assets reached a record $1.37B, up 24.4% year-over-year.

Financial highlights

• Total assets at September 30, 2024 were $2.35B, up 18.4% year-over-year and 2.4% from year-end 2023.

• Net loans were $1.71B, up 17.7% year-over-year, but flat from year-end due to loan sales.

• Total deposits grew 18.6% year-over-year to $1.92B, with 8.5% organic growth and a shift to interest-bearing accounts.

• Non-interest income for Q3 2024 was $6.41M, up from $3.58M in Q3 2023, mainly from fiduciary income, deposit fees, and loan sales.

• Non-interest expense rose to $15.4M in Q3 2024 (from $12.2M), reflecting higher personnel, occupancy, and merger costs.

Outlook and guidance

• Management expects continued integration of recent acquisitions, focus on organic growth, and asset sales to enhance the balance sheet.

• Plans to leverage Wealth Management growth by expanding offerings to new and acquired customers.

• Interest rate environment and economic conditions remain key variables for future performance.