LCNB Corp. Reports Financial Results for the Three and Nine Months Ended September 30, 2019
LCNB Corp. ("LCNB") (NASDAQ: LCNB) today announced net income of $4,727,000 (total basic and diluted earnings per share of $0.36) and $14,082,000 (total basic and diluted earnings per share of $1.07) for the three and nine months ended September 30, 2019, respectively. This compares to net income of $4,201,000 (total basic and diluted earnings per share of $0.32) and $9,652,000 (total basic and diluted earnings per share of $0.84) for the same three and nine month periods in 2018.
Commenting on the financial results, LCNB Chief Executive Officer Eric Meilstrup said, "We are pleased to report strong earnings for the three and nine months ended September 30, 2019. Net income for the first nine months of 2019 was $4,430,000 greater than the first nine months of 2018, fueled by a $5,900,000 increase in net interest income that resulted primarily from a $63.4 million, or 5.5%, increase in our net loan portfolio, from $1.158 billion at September 30, 2018 to $1.222 billion at September 30, 2019. Part of the increase in net interest income was also due to a full nine months of net earnings on loans, deposits, and borrowings obtained through our merger with Columbus First Bancorp ("CFB") on May 31, 2018. Our return on average assets for the first nine months of 2019 was 1.15% and our return on average equity was 8.42%. Additionally, positive earnings growth allowed for increased shareholder dividends, from $0.48 per share for the first nine months of 2018 to $0.51 per share for the same period in 2019. LCNB remains committed to enhancing shareholder value. In addition to increased earnings and dividends, LCNB commenced a new share repurchase program during the second quarter 2019 that authorizes the repurchase of up to 500,000 shares of our outstanding common stock. Under this new program, we repurchased 400,000 shares during the second and third quarters."
Net interest income for the three and nine months ended September 30, 2019 was, respectively, $475,000 and $5,900,000 greater than the comparable periods in 2018, due to growth in the average balance of LCNB's loan portfolio and to an increase in the average rate earned on that portfolio, partially offset by a decrease in average investment securities and increases in average deposits and long-term borrowings and increases in the average rates paid for the deposits and borrowings. Loans, deposits, and long-term borrowings obtained through the merger with CFB were considerable components of the growth in the average balance of LCNB's loan portfolio and the increases in the average balances of deposits and long-term borrowings.