LCNB Corp. Reports $4.6 Million Net Income for Q1 2025, Driven by Increased Net Interest Income

LCNB Corp. reported a net income of $4.6 million for the first quarter of 2025, translating to earnings per share of $0.33, a significant increase from the $1.9 million net income and $0.15 per share recorded in the same period of 2024. This growth in profitability is attributed to a rise in net interest income, which reached $16.3 million, up from $13.9 million a year earlier. The increase was primarily driven by a reduction in average interest rates paid on liabilities and higher average rates earned on loans, resulting in a tax-equivalent net interest margin of 3.25%, compared to 2.72% in the prior year.

In terms of operational changes, LCNB completed the acquisition of Eagle Financial Bancorp, Inc. on April 12, 2024, which has expanded its presence in the Cincinnati market. The acquisition contributed to an increase in customer deposits, which rose to $1.92 billion as of March 31, 2025, up from $1.88 billion at the end of 2024. The bank's total assets decreased slightly to $2.30 billion from $2.31 billion, reflecting a strategic focus on managing its balance sheet effectively post-acquisition.

The company also reported a provision for credit losses of $197,000 for the first quarter of 2025, compared to $125,000 in the same quarter of 2024. This provision reflects LCNB's ongoing assessment of credit risk within its loan portfolio, which totaled $1.71 billion, slightly down from $1.72 billion at the end of 2024. The allowance for credit losses as a percentage of total loans remained stable at 0.71%. The bank's non-accrual loans represented 0.27% of total loans, indicating a consistent credit quality.

Looking ahead, LCNB's management expressed confidence in the bank's ability to navigate the current economic landscape, emphasizing the importance of maintaining adequate liquidity and capital levels. The bank's capital ratios remain strong, with a Common Equity Tier 1 Capital ratio of 9.98% as of March 31, 2025, categorizing it as "well-capitalized" under regulatory standards. The company anticipates continued growth in its loan and deposit balances, supported by its strategic initiatives and market presence.