Why did LCNB's Q3 earnings exceed forecasts?

LCNB's Q3 earnings exceeded forecasts due to several key factors:

1. **Revenue Growth**: LCNB's revenue for Q3 exceeded expectations, with a reported revenue of $19.30 million compared to analyst estimates of $18.50 million. This increase in revenue was driven by a higher volume of average loans outstanding and the average rates earned on these loans.
2. **Cost Management**: The bank's net margin improved to 5.97%, indicating effective cost management and profitability. This improvement was partly due to a partial offset from higher average balances in interest-bearing demand and money market deposits, IRA and time certificates, and long-term debt.
3. **Economies of Scale**: The acquisition of Eagle Financial Bancorp, Inc. and Cincinnati Bancorp, Inc. contributed to LCNB's scale, which increased to $4.21 billion in total assets managed. These transformative acquisitions have provided LCNB with a larger market presence and expanded service offerings, which have positively impacted financial results.
4. **Dividend Income**: The company also announced a quarterly dividend, which was paid on Monday, September 16th, representing a $0.88 annualized dividend and a yield of 5.67%. Dividend income can contribute to the bank's overall earnings and may have exceeded forecasts if the amount received from dividends was higher than anticipated.

In summary, LCNB's Q3 earnings exceeded forecasts due to strong revenue growth, effective cost management, the benefits of strategic acquisitions, and dividend income. These factors combined to deliver robust financial results that surpassed market expectations.