LCNB Corp. Reports Mixed Q1 2026 Results with EPS Decline Amid Higher Credit Provisions, Core Profitability Improves
LCNB sits 21% above its 52-week low of $13.75.
Summary
LCNB Corp. reported a decline in Q1 2026 net income and EPS due to higher credit loss provisions, but achieved record net interest income and margin expansion, alongside growth in book value and wealth management assets.
Key Events · Earnings and Guidance · LCNB
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Q1 2026 Net Income and EPS Decline
Net income for Q1 2026 was $4.4 million ($0.31 diluted EPS), down from $4.6 million ($0.33 diluted EPS) in Q1 2025, primarily due to increased credit loss provisions.
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Record Net Interest Income and Margin Expansion
Net interest income reached a record $18.8 million, up 15.6% year-over-year, with net interest margin expanding to 3.83% from 3.25% in the prior year quarter.
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Significant Increase in Credit Loss Provisions
Provision for credit losses surged to $2.3 million in Q1 2026 from $197,000 in Q1 2025, driven by charge-offs totaling $2.7 million related to two loans in the logistics sector.
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Growth in Book Value and Wealth Management Assets
Book value per share increased 6.0% to $19.36, and tangible book value per share rose 10.7% to $12.55 year-over-year. LCNB Wealth Management assets grew 12.5% to a record $1.57 billion.
Analysis · LCNB · Finance
LCNB Corp. reported mixed financial results for the first quarter of 2026. While net income decreased to $4.4 million from $4.6 million year-over-year, and diluted earnings per share fell to $0.31 from $0.33, the company demonstrated strong underlying core profitability. Net interest income reached a record $18.8 million, up from $16.3 million, driven by a significant expansion in net interest margin to 3.83% from 3.25%. Pre-tax, pre-provision for credit losses net income also increased substantially to $7.7 million from $5.7 million. The decline in net income was primarily due to a sharp increase in the provision for credit losses to $2.3 million from $197,000, and net charge-offs rising to $2.7 million from $39,000, mainly attributed to two participated loans in the logistics industry. Despite these specific asset quality challenges, overall nonperforming loans decreased. Book value and tangible book value per share both saw healthy year-over-year increases, and LCNB Wealth Management assets reached a record $1.57 billion. Management expressed confidence in 2026 being another good year of high profitability, indicating that the Q1 credit issues are contained. This filing provides crucial details and management commentary following the initial EPS report by Reuters.
At the time of this filing, LCNB was trading at $16.64 on NASDAQ in the Finance sector, with a market capitalization of approximately $236.9M. The 52-week trading range was $13.75 to $17.89. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.