LCNB Corp. Reports Financial Results for the Three and Six Months Ended June 30, 2026

(Moderate)

(Positive)

Key Terms

tangible book value financial

Tangible book value is the accounting measure of a company’s net worth after removing intangible items like goodwill, patents and trademarks, leaving only physical and financial assets minus liabilities. For investors it offers a clearer view of the company’s hard-asset backing per share—like estimating the cash you could get by selling the furniture, machinery and cash in a house—helping gauge downside risk and whether a stock may be cheaply valued.

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provision for credit losses financial

Provision for credit losses is an amount set aside by a financial institution to cover potential future losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution manage risks and stay financially healthy. For investors, it signals how cautious a lender is about potential loan defaults and can impact the company's profitability and financial stability.

net charge-offs financial

Net charge-offs are the amount of loans or credit a lender removes from its books as uncollectible after subtracting any money later recovered from previously written-off accounts. Think of it like a store writing off unpaid tabs but getting back a few dollars later — the net figure shows the real loss. Investors watch this to judge a lender’s loan quality, future profits and how much capital may be needed to cover bad debts.

nonperforming loans financial

Nonperforming loans are loans on which borrowers have stopped making the scheduled interest or principal payments for an extended period (commonly 90 days or more) or are otherwise in serious danger of default. Think of them as IOUs that aren’t being repaid: they tie up a lender’s money, reduce future interest income, and force the lender to hold extra reserves or take losses. For investors, a rising share of nonperforming loans signals weakening credit quality, higher potential losses, and greater risk to a bank’s profitability and capital.

available-for-sale investment portfolio financial

A portfolio of debt or equity securities that a company holds to sell when conditions are favorable, rather than to trade frequently or to hold until maturity. It matters to investors because these holdings are reported at current market value and swings in their price affect the company’s reported net worth and potential future profits when sold, so they signal exposure to market risk and possible one-time gains or losses. Think of it like items in a garage you plan to sell when the price is right.

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07/16/2026 - 07:00 AM

Second quarter 2026, net interest margin increased 52 basis points year-over-year to 3.99%, driving record quarterly net interest income of $19.8 million, a 12.8% year-over-year increase

Record second quarter 2026 net income of $7.5 million; quarterly earnings per share rose 29% year-over-year to $0.53; Return on Average Assets improved to 1.34%

Tangible book value per share increased 10.4% year-over-year to $12.90 per share at June 30, 2026

LCNB Wealth Management assets increased 15.3% year-over-year to a record $1.7 billion at June 30, 2026, producing fiduciary income of $2.7 million for the 2026 second quarter

LEBANON, Ohio--(BUSINESS WIRE)-- LCNB Corp. ("LCNB") (NASDAQ: LCNB) today announced financial results for the three and six months ended June 30, 2026.

Commenting on the financial results, LCNB Chief Executive Officer, Eric Meilstrup said, “I am pleased to report that LCNB achieved record second quarter financial results across key performance measures, including net interest income, net income, and earnings per diluted share. In addition, we ended the quarter with continued net interest margin expansion, disciplined expense management, solid year-over-year growth at LCNB Wealth Management, and an ROAA of 1.34%. These results reflect the strength of our team, the positive contribution of our recent acquisitions, and the value LCNB continues to provide to the customers, communities, and shareholders we serve.”

Mr. Meilstrup continued, “As expected, we earned back the tangible book value dilution from the November 2023 Cincinnati Federal acquisition during the first half of 2026. This milestone reflects the strong earnings performance generated since the acquisition, which contributed to a 10.4% year-over-year increase in tangible book value. At the same time, we continue to invest in our platform to support growth, enhance our operations and services, and improve efficiency. During the second quarter, we expanded our banking team in the Columbus market and added talent to our wealth management team in the Cincinnati market, further strengthening our ability to serve customers and support future growth opportunities. These additions demonstrate our commitment to expanding LCNB's presence in attractive markets while continuing to deliver high-quality service and trusted financial advice."

“We remain focused on the fundamentals that create long-term shareholder value including profitable growth, disciplined risk management, strong asset quality, and deeper customer relationships. During the quarter, we originated approximately $123 million in new loans, while asset quality remained at historically strong levels. LCNB Wealth Management also continues to be an important component of our multi-year growth strategy and helps differentiate LCNB from many community banks in our markets. Looking ahead to the second half of 2026, we remain committed to the core principles that sustain long-term shareholder value. We are executing well, building momentum across our platform, and believe 2026 is shaping up to be a strong year of profitable growth and value creation,” concluded Mr. Meilstrup.

Income Statement

Net income for the 2026 second quarter was $7.5 million, compared to $5.9 million for the same period in 2025. Earnings per basic and diluted share for the 2026 second quarter were $0.53, compared to $0.41 for the same period in 2025. Net income for the six-month period ended June 30, 2026 was $11.9 million, compared to $10.5 million for the same period last year. Earnings per basic and diluted share for the six-month period ended June 30, 2026 were $0.84, compared to $0.74 for the same period last year.

Net interest income for the three months ended June 30, 2026, was a record $19.8 million, compared to $17.5 million for the same period in 2025. Net interest income for the six-month period ended June 30, 2026 was $38.6 million, as compared to $33.8 million in the same period last year. The year-over-year growth in net interest income was primarily due to an increase in the average yield on earnings assets, a reduction in interest-bearing liabilities, and a decrease in the average rate paid on interest-bearing liabilities. For the 2026 second quarter, LCNB’s tax equivalent net interest margin was 3.99%, compared to 3.47% for the same period in 2025. The net interest margin for the six-month period ended June 30, 2026 was 3.91%, as compared to 3.36% in the same period last year.

Non-interest income for the three months ended June 30, 2026, was $5.4 million, compared to $5.2 million for the same period in 2025. The increase in non-interest income for the three-month period was primarily due to higher fiduciary income, partially offset by lower gains on sales of loans. For the six months ended June 30, 2026, non-interest income decreased 4.0% to $10.0 million, compared to $10.5 million for the same period last year. The decrease in non-interest income for the six-month period was primarily due to lower gains on the sale of mortgage loans, reflecting the Bank's strategy of retaining a greater portion of originated residential mortgages to support loan growth.

Non-interest expense for the three months ended June 30, 2026, was $15.7 million, compared to $15.6 million for the same period in 2025. The $0.1 million increase was primarily due to higher salaries and employee benefits, computer maintenance and supplies, and contracted services expenses, partially offset by lower intangible asset amortization, reduced merger-related expenses, and lower net FDIC insurance premiums. For the six months ended June 30, 2026, non-interest expense was $0.2 million higher than the comparable period in 2025, partially due to increases in salaries and employee benefits and contracted services expense, which were partially offset by lower intangible asset amortization, reduced FDIC insurance premiums, and lower merger-related expenses.

Capital Allocation

For the three months ended June 30, 2026, LCNB paid $0.22 per share in dividends. Year-to-date, LCNB has paid $0.44 per share in dividends.

Balance Sheet

Total assets at June 30, 2026, decreased 3.6%, to $2.22 billion, from $2.31 billion at June 30, 2025. Net loans at June 30, 2026 were $1.69 billion, a decrease of 0.9%, or $14.9 million, from June 30, 2025. During the quarter ended June 30, 2026, the Company originated $73.1 million in commercial and commercial real estate loans and $40.1 million in residential mortgage loans. During the same quarter, the Company sold approximately $20.2 million of residential mortgage loans into the secondary market, generating gains of $420 thousand that were recognized in second quarter non-interest income, compared to $88.8 million in total loans originated and $30.0 million of loans sold into the secondary market for the same period last year, which generated $615 thousand of gains and benefited second quarter 2025 non-interest income.

Loans held for sale totaled $3.5 million at June 30, 2026, compared to $6.0 million at June 30, 2025, and were primarily composed of loans scheduled to be sold to secondary market investors.

Total deposits at June 30, 2026 decreased 5.2%, to $1.82 billion, compared to $1.92 billion at June 30, 2025. The net change includes the decline in interest-bearing balances which reflects the strategic runoff of higher-cost certificates of deposit and IRA balances as part of the Company's funding optimization strategy, partially offset by a modest growth in noninterest‑bearing demand deposit accounts.

At June 30, 2026, shareholders' equity was $280.6 million, compared to $263.5 million at June 30, 2025. On a per-share basis, shareholders' equity at June 30, 2026 was $19.69, compared to $18.59 at June 30, 2025.

At June 30, 2026, tangible shareholders' equity was $183.8 million, compared to $165.8 million at June 30, 2025. The 10.9% year-over-year increase in tangible shareholders' equity was primarily from higher retained earnings and an improvement in the unrealized losses on the available-for-sale investment portfolio. On a per-share basis, tangible shareholders' equity was $12.90 at June 30, 2026, compared to $11.69 at June 30, 2025.

Assets Under Management

Total assets managed at June 30, 2026, were $4.25 billion, compared to $4.18 billion at June 30, 2025. The year-over-year increase in total assets managed was due to an increase in the fair value of trust and investments and investment services partially offset by lower LCNB total assets, mortgage loans serviced and cash management. Trust and investments and brokerage accounts increased due to a higher number of new LCNB Wealth Management customer accounts and an increase in the fair value of managed assets.

Asset Quality

For the 2026 second quarter, LCNB recorded a provision for credit losses of $276 thousand, compared to a provision for credit losses of $18 thousand for the 2025 second quarter. For the six months ended June 30, 2026, LCNB recorded a total provision for credit losses of $2.6 million, compared to a total provision for credit losses of $215 thousand for the six months ended June 30, 2025.

Net recoveries for the 2026 second quarter were $1 thousand, or 0.00% of average loans, compared to net charge-offs of $79 thousand, or 0.02% of average loans, annualized, for the same period in 2025. For the 2026 six-month period, net charge-offs were $2.7 million, or 0.32% of average loans, annualized, compared to net charge-offs of $118 thousand, or 0.01% of average loans, for the 2025 six-month period. The net increase in charge‑offs during the 2026 six-month period primarily reflected the resolution of two unrelated credits within the logistics sector, an industry that has experienced elevated stress in recent periods across the broader economy.

Total nonperforming loans, which include nonaccrual loans and loans past due 90 days or more and still accruing interest, were $5.8 million, or 0.34% of total loans, at June 30, 2026, compared to $4.8 million, or 0.28% of total loans, at June 30, 2025. The year-over-year increase in nonperforming loans was primarily attributable to the addition of three commercial loans that were placed on nonaccrual status since the beginning of 2026. The nonperforming assets to total assets ratio was 0.26% at June 30, 2026, compared to 0.21% at June 30, 2025.

About LCNB Corp.

LCNB Corp. is a financial holding company headquartered in Lebanon, Ohio. Through its subsidiary, LCNB National Bank (the “Bank”), it serves customers and communities in Southwest and South-Central Ohio. A financial institution with a long tradition for building strong relationships with customers and communities, the Bank offers convenient banking locations in Butler, Clermont, Clinton, Fayette, Franklin, Hamilton, Montgomery, Preble, Ross, and Warren Counties, Ohio. The Bank continually strives to exceed customer expectations and provides an array of services for all personal and business banking needs including checking, savings, online banking, personal lending, business lending, agricultural lending, business support, deposit and treasury, investment services, trust and IRAs and stock purchases. LCNB Corp. common shares are traded on the NASDAQ Capital Market Exchange® under the symbol “LCNB.”

Learn more about LCNB Corp. at www.lcnb.com

Forward-Looking Statements

Certain statements made in this news release regarding LCNB’s financial condition, results of operations, plans, objectives, future performance and business, are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements are identified by the fact they are not historical facts and include words such as “anticipate”, “could”, “may”, “feel”, “expect”, “believe”, “plan”, and similar expressions. Please refer to LCNB’s Annual Report on Form 10-K for the year ended December 31, 2025, as well as its other filings with the SEC, for a more detailed discussion of risks, uncertainties and factors that could cause actual results to differ from those discussed in the forward-looking statements.

These forward-looking statements reflect management's current expectations based on all information available to management and its knowledge of LCNB’s business and operations. Additionally, LCNB’s financial condition, results of operations, plans, objectives, future performance and business are subject to risks and uncertainties that may cause actual results to differ materially. These factors include, but are not limited to:

1.	the success, impact, and timing of the implementation of LCNB’s business strategies;
2.	LCNB’s ability to integrate future acquisitions may be unsuccessful or may be more difficult, time-consuming, or costly than expected;
3.	LCNB may incur increased loan charge-offs in the future and the allowance for credit losses may be inadequate;
4.	LCNB may face competitive loss of customers to both bank and nonbank financial institutions;
5.	changes in the interest rate environment, either by interest rate increases or decreases, may have results on LCNB’s operations materially different from those anticipated by LCNB’s market risk management functions;
6.	changes in general economic conditions, increased competition could adversely affect LCNB’s operating results;
7.	changes in or instability regarding regulations and government policies affecting bank holding companies and their subsidiaries, including changes in monetary policies, could negatively impact LCNB’s operating results;
8.	LCNB may experience difficulties growing loan and deposit balances;
9.	United States trade relations with foreign countries could negatively impact the financial condition of LCNB's customers, which could adversely affect LCNB's operating results and financial condition;
10.	global and/or geopolitical relations and/or conflicts could create financial market uncertainty and have negative impacts on commodities, currency, and stability, which could adversely affect LCNB's operating results and financial condition;
11.	difficulties with technology or data security breaches, including cyberattacks or widespread outages, could negatively affect LCNB's ability to conduct business and its relationships with customers, vendors, and others;
12.	adverse weather events and natural disasters and global and/or national epidemics could negatively affect LCNB’s customers given its concentrated geographic scope, which could impact LCNB’s operating results; and
13.	government intervention in the U.S. financial system, including the effects of legislative, tax, accounting, and regulatory actions and reforms, including, the Jumpstart Our Business Startups Act, the Consumer Financial Protection Bureau, the capital ratios of Basel III as adopted by the federal banking authorities, changes in deposit insurance premium levels, and any such future regulatory actions or reforms.

Forward-looking statements made herein reflect management's expectations as of the date such statements are made. Such information is provided to assist shareholders and potential investors in understanding current and anticipated financial operations of LCNB and is included pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. LCNB undertakes no obligation to update any forward-looking statement to reflect events or circumstances that arise after the date such statements are made.

LCNB Corp. and Subsidiaries
Financial Highlights
(Dollars in thousands, except per share amounts)
(Unaudited)

	Three Months Ended															Six Months Ended
	6/30/2026			3/31/2026			12/31/2025			9/30/2025			6/30/2025			6/30/2026			6/30/2025
Condensed Income Statement
Interest income	$	26,332			25,430			25,187			26,305			25,939			51,762			51,255
Interest expense		6,541			6,583			6,931			8,179			8,398			13,124			17,415
Net interest income		19,791			18,847			18,256			18,126			17,541			38,638			33,840
Provision for credit losses		276			2,339			1,510			211			18			2,615			215
Net interest income after provision for credit losses		19,515			16,508			16,746			17,915			17,523			36,023			33,625
Non-interest income		5,353			4,693			5,601			5,704			5,248			10,046			10,470
Non-interest expense		15,675			15,880			15,388			15,145			15,567			31,555			31,376
Income before income taxes		9,193			5,321			6,959			8,474			7,204			14,514			12,719
Provision for income taxes		1,699			877			1,303			1,538			1,285			2,576			2,191
Net income	$	7,494			4,444			5,656			6,936			5,919			11,938			10,528

Supplemental Income Statement Information
Accretion income on acquired loans	$	1,290			659			816			904			1,174			1,949			1,866
Tax-equivalent net interest income		19,829			18,886			18,297			18,169			17,584			38,715			33,922
Pre-provision, pre-tax net income		9,469			7,660			8,469			8,685			7,222			17,129			12,934

Per Share Data
Dividends per share	$	0.22			0.22			0.22			0.22			0.22			0.44			0.44
Basic earnings per common share	$	0.53			0.31			0.40			0.49			0.41			0.84			0.74
Diluted earnings per common share	$	0.53			0.31			0.40			0.49			0.41			0.84			0.74
Book value per share	$	19.69			19.36			19.30			19.02			18.59			19.69			18.59
Tangible book value per share	$	12.90			12.55			12.45			12.15			11.69			12.90			11.69
Weighted average common shares outstanding:
Basic		14,157,834			14,125,191			14,106,778			14,097,414			14,085,764			14,141,601			14,070,417
Diluted		14,157,834			14,125,191			14,106,778			14,097,414			14,085,764			14,141,601			14,070,417
Shares outstanding at period end		14,254,091			14,245,849			14,193,577			14,186,204			14,175,241			14,254,091			14,175,241

Selected Financial Ratios
Return on average assets		1.34	%		0.80	%		1.01	%		1.21	%		1.04	%		1.07	%		0.93	%
Return on average equity		10.78	%		6.52	%		8.22	%		10.33	%		9.09	%		8.67	%		8.22	%
Return on average tangible common equity		16.51	%		10.06	%		12.78	%		16.29	%		14.54	%		13.33	%		13.26	%
Dividend payout ratio		41.51	%		70.97	%		55.00	%		44.90	%		53.66	%		52.38	%		59.46	%
Net interest margin (tax equivalent)		3.99	%		3.83	%		3.69	%		3.57	%		3.47	%		3.91	%		3.36	%
Efficiency ratio (tax equivalent)		62.25	%		67.35	%		64.39	%		63.44	%		68.18	%		64.71	%		70.68	%

Selected Balance Sheet Items
Cash and cash equivalents	$	24,855			29,181			21,614			35,865			49,778
Debt and equity securities		267,251			276,913			280,565			292,604			302,935

Loans:
Commercial and industrial	$	96,280			100,477			104,013			107,925			110,528
Commercial, secured by real estate		1,090,836			1,090,718			1,100,203			1,083,748			1,110,875
Residential real estate		482,518			476,863			469,574			454,918			459,473
Consumer		14,983			15,834			16,928			17,748			18,452
Agricultural		15,938			14,561			15,666			15,262			14,413
Other, including deposit overdrafts		174			273			210			267			171
Deferred net origination fees		(1,159	)		(1,052	)		(1,063	)		(840	)		(902	)
Loans, gross		1,699,569			1,697,674			1,705,531			1,679,028			1,713,010
Less allowance for credit losses		13,606			13,372			13,704			12,170			12,108
Loans, net	$	1,685,963			1,684,302			1,691,827			1,666,858			1,700,902

Loans held for sale	$	3,508			3,438			1,718			4,018			6,026

	Three Months Ended															Six Months Ended
	6/30/2026			3/31/2026			12/31/2025			9/30/2025			6/30/2025			6/30/2026			6/30/2025
Selected Balance Sheet Items, continued

Allowance for Credit Losses on Loans:
Allowance for credit losses, beginning of period	$	13,372			13,704			12,170			12,108			12,124
Provision for credit losses on loans		233			2,398			1,520			231			63
Losses charged off		(36	)		(2,766	)		(67	)		(193	)		(95	)
Recoveries		37			36			81			24			16
Allowance for credit losses, end of period	$	13,606			13,372			13,704			12,170			12,108

Total earning assets	$	1,976,036			1,986,777			1,993,785			1,983,606			2,034,540
Goodwill		90,310			90,310			90,310			90,310			90,310
Core deposit intangibles		6,478			6,705			6,931			7,161			7,408
Mortgage servicing rights		2,021			2,188			2,340			2,519			2,698
Other non-earning assets		148,871			151,856			147,403			160,769			172,844
Total non-earning assets		247,679			251,059			246,984			260,759			273,260
Total assets		2,223,715			2,237,836			2,240,769			2,244,365			2,307,800
Total deposits		1,819,186			1,838,793			1,840,355			1,849,082			1,919,372
Long-term debt		103,836			104,133			104,428			104,717			105,000
Total shareholders’ equity		280,617			275,816			273,929			269,870			263,474
Equity to assets ratio		12.62	%		12.33	%		12.22	%		12.02	%		11.42	%
Loans to deposits ratio		93.42	%		92.33	%		92.67	%		90.80	%		89.25	%

Tangible common equity (TCE)	$	183,829			178,801			176,689			172,399			165,756
Tangible common assets (TCA)		2,126,927			2,140,821			2,143,529			2,146,894			2,210,082
TCE/TCA		8.64	%		8.35	%		8.24	%		8.03	%		7.50	%

Selected Average Balance Sheet Items
Cash and cash equivalents	$	28,893			35,116			29,395			38,466			34,256			31,978			35,063
Debt and equity securities		248,323			278,950			285,810			298,341			302,475			251,424			303,373

Loans, including loans held for sale	$	1,706,541			1,707,948			1,675,449			1,706,281			1,718,959			1,707,241			1,720,418
Less allowance for credit losses on loans		13,376			12,812			12,186			12,099			12,117			13,095			12,057
Net loans	$	1,693,165			1,695,136			1,663,263			1,694,182			1,706,842			1,694,145			1,708,361

Total earning assets	$	1,991,514			2,000,595			1,968,188			2,017,294			2,031,261			1,996,826			2,033,996
Goodwill		90,310			90,310			90,310			90,310			90,310			90,310			90,310
Core deposit intangibles		6,589			6,816			7,043			7,275			7,555			6,702			7,704
Mortgage servicing rights		2,189			2,340			2,520			2,699			2,908			2,264			3,003
Other non-earning assets		147,961			153,437			153,528			159,328			158,251			149,349			159,138
Total non-earning assets		247,049			252,903			253,401			259,612			259,024			248,625			260,155
Total assets		2,238,563			2,253,498			2,221,589			2,276,906			2,290,285			2,245,451			2,294,151
Total deposits		1,834,710			1,846,345			1,822,412			1,884,748			1,906,305			1,840,496			1,901,402
Short-term borrowings		—			4,795			—			52			63			2,384			67
Long-term debt		104,080			104,376			104,664			104,951			104,701			104,227			115,933
Total shareholders’ equity		278,949			276,362			272,856			266,489			261,193			277,663			258,173
Equity to assets ratio		12.46	%		12.26	%		12.28	%		11.70	%		11.40	%		12.37	%		11.25	%
Loans to deposits ratio		93.00	%		92.50	%		91.94	%		90.53	%		90.17	%		92.75	%		90.48	%

Asset Quality
Net charge-offs (recoveries)	$	(1	)		2,730			(14	)		169			79			2,729			118
Other real estate owned		—			—			—			—			—

Non-accrual loans	$	5,751			3,227			1,794			1,793			4,500
Loans past due 90 days or more and still accruing		98			136			530			163			271
Total nonperforming loans		5,848			3,363			2,324			1,956			4,771

Net charge-offs to average loans		0.00	%		0.65	%		0.00	%		0.04	%		0.02	%		0.32	%		0.01	%
Allowance for credit losses on loans to total loans		0.80	%		0.79	%		0.80	%		0.72	%		0.71	%
Nonperforming loans to total loans		0.34	%		0.20	%		0.14	%		0.12	%		0.28	%
Nonperforming assets to total assets		0.26	%		0.15	%		0.10	%		0.09	%		0.21	%

	Three Months Ended										Six Months Ended
	6/30/2026		3/31/2026		12/31/2025		9/30/2025		6/30/2025		6/30/2026	6/30/2025
Assets Under Management
LCNB Corp. total assets		2,223,715		2,237,836		2,240,769		2,244,365		2,307,800
Trust and investments (fair value)		1,148,515		1,081,558		1,053,887		1,041,270		990,699
Mortgage loans serviced		308,073		325,133		333,518		341,548		348,003
Cash management		37,175		39,979		10,935		73,002		62,737
Investment services (fair value)		531,900		491,890		504,123		494,947		466,299
Total assets managed	$	4,249,378		4,176,396		4,143,232		4,195,132		4,175,538

	Three Months Ended June 30,																Three Months Ended March 31,
	2026								2025								2026
	Average			Interest		Average			Average			Interest		Average			Average			Interest		Average
	Outstanding			Earned/		Yield/			Outstanding			Earned/		Yield/			Outstanding			Earned/		Yield/
	Balance			Paid		Rate			Balance			Paid		Rate			Balance			Paid		Rate
Loans ⁽¹⁾	$	1,706,541			24,345		5.72	%		1,718,959			23,838		5.56	%		1,707,948			23,433		5.56	%
Interest-bearing demand deposits		9,524			96		4.04	%		9,573			140		5.87	%		10,987			107		3.95	%
Interest-bearing time deposits		2,896			26		3.60	%		254			6		9.47	%		2,710			25		3.74	%
Federal Reserve Bank stock		6,405			98		6.14	%		6,405			98		6.14	%		6,405			94		5.95	%
Federal Home Loan Bank stock		20,710			383		7.42	%		20,710			447		8.66	%		20,710			392		7.68	%
Investment securities:
Equity securities		5,099			33		2.60	%		5,053			36		2.86	%		5,104			37		2.94	%
Debt securities, taxable		224,414			1,207		2.16	%		251,920			1,213		1.93	%		230,649			1,196		2.10	%
Debt securities, non-taxable ⁽²⁾		15,925			182		4.58	%		18,387			204		4.45	%		16,082			185		4.67	%
Total earnings assets		1,991,514			26,370		5.31	%		2,031,261			25,982		5.13	%		2,000,595			25,469		5.16	%
Non-earning assets		260,436								271,147								265,726
Allowance for credit losses		(13,387	)							(12,123	)							(12,823	)
Total assets	$	2,238,563								2,290,285								2,253,498

Interest-bearing demand and money market deposits	$	648,548			2,197		1.36	%		603,066			2,374		1.58	%		682,183			2,465		1.47	%
Savings deposits		355,129			220		0.25	%		363,679			199		0.22	%		356,622			207		0.24	%
IRA and time certificates		351,311			2,803		3.20	%		466,065			4,546		3.91	%		343,061			2,609		3.08	%
Short-term borrowings		—			—		—	%		63			1		6.37	%		4,795			46		3.89	%
Long-term debt		104,080			1,321		5.09	%		104,701			1,278		4.90	%		104,376			1,256		4.88	%
Total interest-bearing liabilities		1,459,068			6,541		1.80	%		1,537,574			8,398		2.19	%		1,491,037			6,583		1.79	%
Demand deposits		479,722								473,495								464,479
Other liabilities		20,824								18,023								21,620
Equity		278,949								261,193								276,362
Total liabilities and equity	$	2,238,563								2,290,285								2,253,498
Net interest rate spread ⁽³⁾							3.51	%							2.94	%							3.37	%
Net interest income and net interest margin on a taxable-equivalent basis ⁽⁴⁾					19,829		3.99	%					17,584		3.47	%					18,886		3.83	%
Ratio of interest-earning assets to interest-bearing liabilities		136.49	%							132.11	%							134.17	%

(1)	Average outstanding balance includes non-accrual loans and loans held for sale
(2)	Income from tax-exempt securities is included in interest income on a taxable-equivalent basis. Interest income has been divided by a factor comprised of the complement of the incremental tax rate of 21%.
(3)	The net interest spread is the difference between the average rate on total interest-earning assets and interest-bearing liabilities.
(4)	The net interest margin is the taxable-equivalent net interest income divided by average interest-earning assets.

	For the Six Months Ended June 30,
	2026								2025
	Average			Interest		Average			Average			Interest		Average
	Outstanding			Earned/		Yield/			Outstanding			Earned/		Yield/
	Balance			Paid		Rate			Balance			Paid		Rate
Loans ⁽¹⁾	$	1,707,241			47,778		5.64	%		1,720,418			47,019		5.51	%
Interest-bearing demand deposits		11,036			203		3.71	%		9,953			272		5.51	%
Interest-bearing time deposits		2,816			51		3.65	%		252			6		4.80	%
Federal Reserve Bank stock		6,405			192		6.05	%		6,405			192		6.05	%
Federal Home Loan Bank stock		20,710			775		7.55	%		20,710			915		8.91	%
Investment securities:
Equity securities		5,101			70		2.77	%		5,048			75		3.00	%
Debt securities, taxable		227,514			2,403		2.13	%		253,434			2,469		1.96	%
Debt securities, non-taxable ⁽²⁾		16,003			367		4.62	%		17,776			389		4.41	%
Total earnings assets		1,996,826			51,839		5.24	%		2,033,996			51,337		5.09	%
Non-earning assets		261,731								272,217
Allowance for credit losses		(13,106	)							(12,062	)
Total assets	$	2,245,451								2,294,151

Interest-bearing demand and money market deposits	$	665,272			4,662		1.41	%		586,860			4,711		1.62	%
Savings deposits		355,871			426		0.24	%		364,771			394		0.22	%
IRA and time certificates		347,209			5,413		3.14	%		481,536			9,573		4.01	%
Short-term borrowings		2,384			46		3.89	%		67			2		6.02	%
Long-term debt		104,227			2,577		4.99	%		115,933			2,735		4.76	%
Total interest-bearing liabilities		1,474,963			13,124		1.79	%		1,549,167			17,415		2.27	%
Demand deposits		472,143								468,235
Other liabilities		20,682								18,576
Equity		277,663								258,173
Total liabilities and equity	$	2,245,451								2,294,151
Net interest rate spread ⁽³⁾							3.44	%							2.82	%
Net interest income and net interest margin on a taxable-equivalent basis ⁽⁴⁾					38,715		3.91	%					33,922		3.36	%
Ratio of interest-earning assets to interest-bearing liabilities		135.38	%							131.30	%

(1)	Average outstanding balance includes non-accrual loans and loans held for sale
(2)	Income from tax-exempt securities is included in interest income on a taxable-equivalent basis. Interest income has been divided by a factor comprised of the complement of the incremental tax rate of 21%.
(3)	The net interest spread is the difference between the average rate on total interest-earning assets and interest-bearing liabilities.
(4)	The net interest margin is the taxable-equivalent net interest income divided by average interest-earning assets.

LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited, dollars in thousands)

	June 30, 2026			December 31, 2025
	Unaudited			Audited
ASSETS:
Cash and due from banks	$	19,158			18,353
Interest-bearing demand deposits		5,697			3,261
Total cash and cash equivalents		24,855			21,614
Interest-bearing time deposits		3,450			2,710
Investment securities:
Equity securities with a readily determinable fair value, at fair value		1,452			1,433
Equity securities without a readily determinable fair value, at cost		3,666			3,666
Debt securities, available-for-sale, at fair value		215,769			232,271
Debt securities, held-to-maturity, at cost, net of allowance for credit losses of $11 at June 30, 2026 and December 31, 2025		15,799			16,080
Federal Reserve Bank stock, at cost		6,405			6,405
Federal Home Loan Bank stock, at cost		20,710			20,710
Loans held-for-sale		3,508			1,718
Loans, net of allowance for credit losses of $13,606 and $13,704 at June 30, 2026 and December 31, 2025, respectively		1,685,963			1,691,827
Premises and equipment, net		39,781			39,196
Operating lease right-of-use assets		6,239			6,475
Goodwill		90,310			90,310
Core deposit and other intangibles, net		8,499			9,271
Bank-owned life insurance		56,149			55,424
Interest receivable		7,765			7,968
Other assets, net		33,395			33,691
TOTAL ASSETS	$	2,223,715			2,240,769

LIABILITIES:
Deposits:
Noninterest-bearing	$	478,568			466,094
Interest-bearing		1,340,618			1,374,261
Total deposits		1,819,186			1,840,355
Long-term debt		103,836			104,428
Operating lease liabilities		6,641			6,877
Accrued interest and other liabilities		13,435			15,180
TOTAL LIABILITIES		1,943,098			1,966,840

COMMITMENTS AND CONTINGENT LIABILITIES		—			—

SHAREHOLDERS' EQUITY:
Preferred shares – no par value, authorized 1,000,000 shares, none outstanding		—			—
Common shares – no par value; authorized 19,000,000 shares; issued 17,470,548 and 17,409,085 shares at June 30, 2026 and December 31, 2025, respectively; outstanding 14,254,091 and 14,193,577 shares at June 30, 2026 and December 31, 2025, respectively		188,868			188,212
Retained earnings		157,609			151,938
Treasury shares at cost, 3,216,457 and 3,215,508 shares at June 30, 2026 and December 31, 2025, respectively		(56,087	)		(56,071	)
Accumulated other comprehensive loss, net of taxes		(9,773	)		(10,150	)
TOTAL SHAREHOLDERS' EQUITY		280,617			273,929
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	2,223,715			2,240,769

LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2026		2025		2026		2025
INTEREST INCOME:
Interest and fees on loans	$	24,345		23,838		47,778		47,019
Dividends on equity securities:
With a readily determinable fair value		12		11		23		21
Without a readily determinable fair value		20		25		46		54
Interest on debt securities:
Taxable		1,207		1,213		2,403		2,469
Non-taxable		144		161		290		307
Other investments		604		691		1,222		1,385
TOTAL INTEREST INCOME		26,332		25,939		51,762		51,255

INTEREST EXPENSE:
Interest on deposits		5,220		7,119		10,501		14,678
Interest on long-term debt		1,321		1,278		2,577		2,735
Interest on short-term borrowings		—		1		46		2
TOTAL INTEREST EXPENSE		6,541		8,398		13,124		17,415
NET INTEREST INCOME		19,791		17,541		38,638		33,840

PROVISION FOR CREDIT LOSSES		276		18		2,615		215
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		19,515		17,523		36,023		33,625

NON-INTEREST INCOME:
Fiduciary income		2,681		2,262		5,220		4,426
Service charges and fees on deposit accounts		1,727		1,884		3,212		3,650
Bank-owned life insurance income		366		353		725		699
Net gains from sales of loans		420		615		620		1,456
Net other operating income		159		134		269		239
TOTAL NON-INTEREST INCOME		5,353		5,248		10,046		10,470

NON-INTEREST EXPENSE:
Salaries and employee benefits		8,959		8,872		18,426		18,044
Occupancy expense, net		993		1,022		2,014		2,032
Equipment expenses		338		371		730		753
State financial institutions tax		447		449		894		902
Marketing		315		281		609		596
Amortization of intangibles		228		301		453		598
Computer maintenance and supplies		434		379		839		759
FDIC insurance premiums, net		327		380		602		790
Contracted services		1,058		859		2,037		1,729
Merger-related expenses		—		140		—		140
Other non-interest expense		2,576		2,513		4,951		5,033
TOTAL NON-INTEREST EXPENSE		15,675		15,567		31,555		31,376
INCOME BEFORE INCOME TAXES		9,193		7,204		14,514		12,719
PROVISION FOR INCOME TAXES		1,699		1,285		2,576		2,191
NET INCOME	$	7,494		5,919		11,938		10,528

Earnings per common share:
Basic	$	0.53		0.41		0.84		0.74
Diluted		0.53		0.41		0.84		0.74
Weighted average common shares outstanding:
Basic		14,157,834		14,085,764		14,141,601		14,070,417
Diluted		14,157,834		14,085,764		14,141,601		14,070,417

View source version on businesswire.com: https://www.businesswire.com/news/home/20260715021679/en/

Company Contact:
Eric J. Meilstrup
Chief Executive Officer
LCNB National Bank
(513) 932-1414
shareholderrelations@lcnb.com

Investor and Media Contact:
Andrew M. Berger
Managing Director
SM Berger & Company, Inc.
(216) 464-6400
andrew@smberger.com

Source: LCNB Corp.

LCNB Corp. Reports Financial Results for the Three and Six Months Ended June 30, 2026

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