LCNB Q3 profit rises on wider interest margin despite higher credit costs

Overview

• U.S. community bank's Q3 net income rose 5% yr/yr, with EPS up to $0.51

• Q3 net interest income increased year-over-year, supported by higher net interest margin

• Credit provisions, net charge-offs and nonperforming loans increased from a year earlier

Outlook

• Company says additional capital from subordinated debt will support future growth and expansion strategies

• LCNB plans to focus on organic growth and expanding wealth management client relationships

• Company remains focused on improving operating efficiency and leveraging its diversified revenue platform

Result Drivers

• NET INTEREST INCOME - Co attributed growth to lower rates paid on liabilities, reduced liabilities, and higher yields on earning assets

• NON-INTEREST INCOME - Declined due to lower service charges, fees, and loan sale gains, partially offset by higher fiduciary income

• FIDUCIARY INCOME - Higher fiduciary income partly offset lower fee income, supported by new wealth-management relationships and higher managed-asset values

Company press release:

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", 3 "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 $20.00, about 7.8% above its October 14 closing price of $18.56

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

Reuters Recommended Reads

• Oct 14 - US banks post solid third-quarter loan growth, but face more competition for deposits

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• Oct 14 - Home BancShares Q3 revenue rises on net interest income strength

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)