LCNB Q2 net income rises, EPS up 24%

Overview

• LCNB Q2 net earnings per share up 24.2% sequentially to $0.41

• Net interest margin expanded to 3.47% from 2.86% in Q2 2024

• Net income for Q2 was $5.9 mln, up from $0.9 mln last year

Outlook

• LCNB expects economic environment to remain fluid

• Sees benefits from recent acquisitions in cross-selling services

• LCNB anticipates continued long-term growth driven by asset quality

• Company highlights strengthening profitability supporting future growth

Result Drivers

• NET INTEREST MARGIN - Expanded due to balance sheet strengthening, loan originations, and stable interest rates, per CEO Eric Meilstrup

• NON-INTEREST INCOME - Increased 28.6% driven by gains from loan sales and higher fiduciary income

• EXPENSE REDUCTION - Non-interest expenses decreased due to lower merger-related costs from the Eagle acquisition in 2024

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for LCNB Corp is $15.50, about 0.1% below its July 21 closing price of $15.52

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nBw2DVHNa