LCNB Corp. (NASDAQ: LCNB) posts higher Q2 2026 profit and loan data
LCNB Corp. reported Q2 2026 net income of $7,494 (dollars in thousands), up from $5,919 in Q2 2025. Six‑month net income was $11,938 versus $10,528, with basic and diluted earnings per share of $0.53 for the quarter and $0.84 year‑to‑date.
Net interest income for Q2 2026 rose to $19,791 from $17,541 as interest expense declined to $6,541 from $8,398, while the provision for credit losses increased to $276 from $18. Non‑interest income was $5,353 and non‑interest expense $15,675, producing income before income taxes of $9,193.
At June 30, 2026, total assets were $2,223,715, including gross loans of $1,699,569, an allowance for credit losses on loans of $13,606, and net loans of $1,685,963. Available‑for‑sale debt securities totaled $215,769. Deposits were $1,819,186, long‑term debt $103,836, and shareholders’ equity $280,617 with 14,254,091 common shares outstanding.
Credit metrics showed non‑accrual loans of $5,751, or 0.34% of total loans, and an allowance for credit losses on loans equal to 0.80% of total loans. Off‑balance‑sheet credit commitments were $305,351, and the company recognized low‑income housing tax credits and other tax benefits that reduced its effective tax rate to 18.5% for Q2 2026.
Positive
- Q2 2026 net income was $7,494 versus $5,919 a year earlier, and six‑month earnings were $11,938 versus $10,528, supported by net interest income of $19,791 versus $17,541 and non‑interest expense of $15,675 versus $15,567.
Negative
- None.
Filing Explained
June 30 credit metrics worsened from year-end while liquidity included 24,855 dollars of cash and 159.1 million dollars of FHLB capacity.
A Form 10-Q is an unaudited quarterly update of interim financial statements, risks, and liquidity. Through
The equity statement records 16,647 shares issued through the dividend reinvestment and stock purchase plan, 44,816 shares issued for restricted stock awards, and
Credit deterioration was higher at quarter-end on the disclosed non-accrual measure: non-accrual loans were
Liquidity included
Key Figures
Key Terms
Allowance for Credit Losses financial
Purchased Credit Deteriorated financial
Other Assets Especially Mentioned financial
Low Income Housing Tax Credit financial
Accumulated other comprehensive loss financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
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Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
(Mark One)
| | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
| | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission File Number
LCNB Corp.
(Exact name of registrant as specified in its charter)
| | |
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
(Address of principal executive offices, including Zip Code)
(
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| | | |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
☒
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
☒
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer ☐
Non-accelerated filer ☐ Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).
The number of shares outstanding of the issuer's common stock, without par value, as of August 5, 2026 was
LCNB CORP. AND SUBSIDIARIES
TABLE OF CONTENTS
| PART I – FINANCIAL INFORMATION |
3 |
| Item 1. Financial Statements |
3 |
| CONSOLIDATED CONDENSED BALANCE SHEETS |
3 |
| CONSOLIDATED CONDENSED STATEMENTS OF INCOME |
4 |
| CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME |
5 |
| CONSOLIDATED CONDENSED STATEMENTS OF SHAREHOLDERS' EQUITY |
6 |
| CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS |
7 |
| NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS |
8 |
| Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations |
36 |
| Item 3. Quantitative and Qualitative Disclosures about Market Risks |
50 |
| Item 4. Controls and Procedures |
51 |
| PART II. OTHER INFORMATION |
52 |
| Item 1. Legal Proceedings |
52 |
| Item 1A. Risk Factors |
52 |
| Item 2. Unregistered Sales of Equity Securities and Use of Proceeds |
52 |
| Item 3. Defaults Upon Senior Securities |
52 |
| Item 4. Mine Safety Disclosures |
52 |
| Item 5. Other Information |
52 |
| Item 6. Exhibits |
53 |
| SIGNATURES |
54 |
Glossary of Abbreviations and Acronyms
| ACL |
Allowance for Credit Losses |
|
| ASC |
Accounting Standards Codification |
|
| ASU |
Accounting Standards Update |
|
| Bank |
LCNB National Bank |
|
| CECL |
Current expected credit losses |
|
| CNNB |
Cincinnati Bancorp, Inc. |
|
| Company |
LCNB Corp. and its consolidated subsidiaries as a whole |
|
| DCF |
Discounted Cash Flow |
|
| EFBI |
Eagle Financial Bancorp, Inc. |
|
| FASB |
Financial Accounting Standards Board |
|
| FDIC |
Federal Deposit Insurance Corporation |
|
| FFIEC |
Financial Institutions Examination Council |
|
| FHLB |
Federal Home Loan Bank |
|
| FICO |
Fair Isaac Corporation |
|
| FOMC |
Federal Open Market Committee of the Federal Reserve System |
|
| FRB |
Federal Reserve Bank |
|
| GAAP |
Generally Accepted Accounting Principles |
|
| ICS | Insured Cash Sweep | |
| IRA |
Individual Retirement Account |
|
| LCNB |
LCNB Corp. and its consolidated subsidiaries as a whole |
|
| LDA |
Loss Driver Analysis |
|
| LGD |
Loss Given Default |
|
| OAEM | Other Assets Especially Mentioned | |
| PCD |
Purchased Credit Deteriorated |
|
| PD |
Probability of Default |
|
| SEC |
Securities and Exchange Commission |
PART I – FINANCIAL INFORMATION
Item 1. Financial Statements
LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(Dollars in thousands)
| June 30, 2026 | December 31, 2025 | |||||||
| Unaudited | Audited | |||||||
| ASSETS: | ||||||||
| Cash and due from banks | $ | $ | ||||||
| Interest-bearing demand deposits | ||||||||
| Total cash and cash equivalents | ||||||||
| Interest-bearing time deposits | ||||||||
| Investment securities: | ||||||||
| Equity securities with a readily determinable fair value, at fair value | ||||||||
| Equity securities without a readily determinable fair value, at cost | ||||||||
| Debt securities, available-for-sale, at fair value | ||||||||
| Debt securities, held-to-maturity, at cost, net of allowance for credit losses of $10 and $11 at June 30, 2026 and December 31, 2025, respectively | ||||||||
| Federal Reserve Bank stock, at cost | ||||||||
| Federal Home Loan Bank stock, at cost | ||||||||
| Loans held-for-sale | ||||||||
| Loans, net of allowance for credit losses of $13,606 and $13,704 at June 30, 2026 and December 31, 2025, respectively | ||||||||
| Premises and equipment, net | ||||||||
| Operating lease right-of-use assets | ||||||||
| Goodwill | ||||||||
| Core deposit and other intangibles, net | ||||||||
| Bank-owned life insurance | ||||||||
| Interest receivable | ||||||||
| Other assets, net | ||||||||
| TOTAL ASSETS | $ | $ | ||||||
| LIABILITIES: | ||||||||
| Deposits: | ||||||||
| Noninterest-bearing | $ | |||||||
| Interest-bearing | ||||||||
| Total deposits | ||||||||
| Long-term debt | ||||||||
| Operating lease liabilities | ||||||||
| Accrued interest and other liabilities | ||||||||
| TOTAL LIABILITIES | $ | $ | ||||||
| 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 | ||||||||
| Retained earnings | ||||||||
| Treasury shares at cost, 3,216,457 and 3,215,508 shares at June 30, 2026 and December 31, 2025, respectively | ( | ) | ( | ) | ||||
| Accumulated other comprehensive loss, net of taxes | ( | ) | ( | ) | ||||
| TOTAL SHAREHOLDERS' EQUITY | $ | $ | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | $ | ||||||
The accompanying notes to consolidated condensed financial statements are an integral part of these statements.
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 | $ | |||||||||||||||
| Dividends on equity securities: | ||||||||||||||||
| With a readily determinable fair value | ||||||||||||||||
| Without a readily determinable fair value | ||||||||||||||||
| Interest on debt securities: | ||||||||||||||||
| Taxable | ||||||||||||||||
| Non-taxable | ||||||||||||||||
| Other investments | ||||||||||||||||
| TOTAL INTEREST INCOME | ||||||||||||||||
| INTEREST EXPENSE: | ||||||||||||||||
| Interest on deposits | ||||||||||||||||
| Interest on long-term debt | ||||||||||||||||
| Interest on short-term borrowings | ||||||||||||||||
| TOTAL INTEREST EXPENSE | ||||||||||||||||
| NET INTEREST INCOME | ||||||||||||||||
| PROVISION FOR CREDIT LOSSES | ||||||||||||||||
| NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | ||||||||||||||||
| NON-INTEREST INCOME: | ||||||||||||||||
| Fiduciary income | ||||||||||||||||
| Service charges and fees on deposit accounts | ||||||||||||||||
| Bank-owned life insurance income | ||||||||||||||||
| Net gains from sales of loans | ||||||||||||||||
| Other operating income | ||||||||||||||||
| TOTAL NON-INTEREST INCOME | ||||||||||||||||
| NON-INTEREST EXPENSE: | ||||||||||||||||
| Salaries and employee benefits | ||||||||||||||||
| Occupancy expense, net | ||||||||||||||||
| Equipment expenses | ||||||||||||||||
| State financial institutions tax | ||||||||||||||||
| Marketing | ||||||||||||||||
| Amortization of intangibles | ||||||||||||||||
| Computer maintenance and supplies | ||||||||||||||||
| FDIC insurance premiums, net | ||||||||||||||||
| Contracted services | ||||||||||||||||
| Merger-related expenses | ||||||||||||||||
| Other non-interest expense | ||||||||||||||||
| TOTAL NON-INTEREST EXPENSE | ||||||||||||||||
| INCOME BEFORE INCOME TAXES | ||||||||||||||||
| PROVISION FOR INCOME TAXES | ||||||||||||||||
| NET INCOME | $ | |||||||||||||||
| Earnings per common share: | ||||||||||||||||
| Basic | $ | $ | ||||||||||||||
| Diluted | ||||||||||||||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic | ||||||||||||||||
| Diluted | ||||||||||||||||
The accompanying notes to consolidated condensed financial statements are an integral part of these statements.
LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands)
(Unaudited)
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Net income | $ | |||||||||||||||
| Other comprehensive income: | ||||||||||||||||
| Net unrealized gain on available-for-sale debt securities (net of tax expense of $51 and $478 for the three months ended June 30, 2026 and 2025, respectively, and $103 and $1,451 for the six months ended June 30, 2026 and 2025, respectively) | ||||||||||||||||
| TOTAL COMPREHENSIVE INCOME | $ | |||||||||||||||
The accompanying notes to consolidated condensed financial statements are an integral part of these statements.
LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF SHAREHOLDERS' EQUITY
(Dollars in thousands, except per share data)
(Unaudited)
| Accumulated | ||||||||||||||||||||||||
| Common | Other | Total | ||||||||||||||||||||||
| Shares | Common | Retained | Treasury | Comprehensive | Shareholders' | |||||||||||||||||||
| Outstanding | Stock | Earnings | Shares | Loss | Equity | |||||||||||||||||||
| Three Months Ended June 30, 2026 | ||||||||||||||||||||||||
| Balance at April 1, 2026 | $ | ( | ) | ( | ) | |||||||||||||||||||
| Net income | — | |||||||||||||||||||||||
| Other comprehensive income, net of taxes | — | |||||||||||||||||||||||
| Dividend Reinvestment and Stock Purchase Plan | ||||||||||||||||||||||||
| Compensation expense relating to restricted stock | — | |||||||||||||||||||||||
| Common stock dividends, $0.22 per share | — | ( | ) | ( | ) | |||||||||||||||||||
| Balance at June 30, 2026 | $ | ( | ) | ( | ) | |||||||||||||||||||
| Six Months Ended June 30, 2026 | ||||||||||||||||||||||||
| Balance at January 1, 2026 | $ | ( | ) | ( | ) | |||||||||||||||||||
| Net income | — | |||||||||||||||||||||||
| Other comprehensive income, net of taxes | — | |||||||||||||||||||||||
| Dividend Reinvestment and Stock Purchase Plan | ||||||||||||||||||||||||
| Shares issued for restricted stock awards | — | — | — | — | — | |||||||||||||||||||
| Repurchase of common stock | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
| Compensation expense relating to restricted stock | — | |||||||||||||||||||||||
| Common stock dividends, $0.44 per share | — | ( | ) | ( | ) | |||||||||||||||||||
| Balance at June 30, 2026 | $ | ( | ) | ( | ) | |||||||||||||||||||
| Three Months Ended June 30, 2025 | ||||||||||||||||||||||||
| Balance at April 1, 2025 | $ | ( | ) | ( | ) | |||||||||||||||||||
| Net income | — | |||||||||||||||||||||||
| Other comprehensive income, net of taxes | — | |||||||||||||||||||||||
| Dividend Reinvestment and Stock Purchase Plan | ||||||||||||||||||||||||
| Repurchase of common stock | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
| Compensation expense relating to restricted stock | — | |||||||||||||||||||||||
| Common stock dividends, $0.22 per share | — | ( | ) | ( | ) | |||||||||||||||||||
| Balance at June 30, 2025 | $ | ( | ) | ( | ) | |||||||||||||||||||
| Six Months Ended June 30, 2025 | ||||||||||||||||||||||||
| Balance at January 1, 2025 | $ | ( | ) | ( | ) | |||||||||||||||||||
| Net income | — | |||||||||||||||||||||||
| Other comprehensive income, net of taxes | — | |||||||||||||||||||||||
| Dividend Reinvestment and Stock Purchase Plan | ||||||||||||||||||||||||
| Shares issued for restricted stock awards | — | — | — | — | — | |||||||||||||||||||
| Repurchase of common stock | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
| Compensation expense relating to restricted stock | — | |||||||||||||||||||||||
| Common stock dividends, $0.44 per share | — | ( | ) | ( | ) | |||||||||||||||||||
| Balance at June 30, 2025 | $ | ( | ) | ( | ) | |||||||||||||||||||
The accompanying notes to consolidated condensed financial statements are an integral part of these statements.
LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
| Six Months Ended | ||||||||
| June 30, | ||||||||
| 2026 | 2025 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income | $ | |||||||
| Adjustments to reconcile net income to net cash flows from operating activities: | ||||||||
| Depreciation, amortization, and accretion | ( | ) | ||||||
| Provision for credit losses | ||||||||
| Deferred income tax provision | ||||||||
| Increase in cash surrender value of bank-owned life insurance | ( | ) | ( | ) | ||||
| Realized and unrealized (gains) losses from equity securities, net | ( | ) | ||||||
| Realized losses from disposition of premises and equipment | ||||||||
| Realized gain from sales of premises held-for-sale | ( | ) | ||||||
| Origination of mortgage loans for sale | ( | ) | ( | ) | ||||
| Realized gains from sales of loans | ( | ) | ( | ) | ||||
| Proceeds from sales of originated loans | ||||||||
| Compensation expense related to restricted stock | ||||||||
| Changes in: | ||||||||
| Accrued interest receivable | ( | ) | ||||||
| Other assets | ( | ) | ( | ) | ||||
| Other liabilities | ( | ) | ( | ) | ||||
| TOTAL ADJUSTMENTS | ( | ) | ( | ) | ||||
| NET CASH FLOWS PROVIDED BY OPERATING ACTIVITIES | ||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Equity securities: | ||||||||
| Purchases of securities | ( | ) | ( | ) | ||||
| Available for-sale debt securities: | ||||||||
| Proceeds from maturities, prepayments and calls | ||||||||
| Purchases of securities | ( | ) | ( | ) | ||||
| Held-to-maturity debt securities: | ||||||||
| Proceeds from maturities, prepayments and calls | ||||||||
| Purchases of securities | ( | ) | ||||||
| Net decrease in interest-bearing time deposits | ( | ) | ( | ) | ||||
| Net decreases in loans | ||||||||
| Purchases of premises and equipment | ( | ) | ( | ) | ||||
| Proceeds from sales of premises held-for-sale | ||||||||
| Funding of tax credit investments | ( | ) | ( | ) | ||||
| NET CASH FLOWS PROVIDED BY INVESTING ACTIVITIES | ||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Net increase (decrease) in customer deposits | ( | ) | ||||||
| Principal payments on long-term debt | ( | ) | ( | ) | ||||
| Proceeds from issuance of common stock | ||||||||
| Repurchase of common stock | ( | ) | ( | ) | ||||
| Cash dividends paid on common stock | ( | ) | ( | ) | ||||
| NET CASH FLOWS USED IN FINANCING ACTIVITIES | ( | ) | ( | ) | ||||
| NET CHANGE IN CASH AND CASH EQUIVALENTS | ||||||||
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | ||||||||
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | ||||||||
| SUPPLEMENTAL CASH FLOW INFORMATION: | ||||||||
| CASH PAID DURING THE YEAR FOR: | ||||||||
| Interest | $ | |||||||
| Income taxes | ||||||||
| SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING ACTIVITIES: | ||||||||
| New commitments in affordable housing tax credit investments | $ | |||||||
| Loans provided for sales of premises held-for-sale | ||||||||
| Transfer from premises and equipment to premises held-for-sale | ||||||||
| Right-of-use assets obtained in exchange for lease obligations | ||||||||
The accompanying notes to consolidated condensed financial statements are an integral part of these statements.
LCNB CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)
NOTE 1 - BASIS OF PRESENTATION
BASIS OF PRESENTATION
The accompanying unaudited interim consolidated condensed financial statements include LCNB Corp. and its wholly-owned subsidiaries: LCNB National Bank and LCNB Risk Management, Inc., its captive insurance company. All material intercompany transactions and balances are eliminated in consolidation.
The unaudited interim consolidated condensed financial statements have been prepared in accordance with U.S. GAAP for interim financial information and the rules and regulations of the SEC. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations. In the opinion of management, the unaudited interim condensed consolidated financial statements include all adjustments (consisting of normal, recurring accruals) considered necessary for a fair presentation of the Company's financial position, results of consolidated operations, and cash flows for the interim periods, as required by Regulation S-X, Rule 10-01.
The consolidated condensed balance sheet as of December 31, 2025 has been derived from the audited consolidated balance sheet as of that date.
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Results of operations for the three and six months ended June 30, 2026 are not necessarily indicative of the results to be expected for the full year ending December 31, 2026. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements, accounting policies, and financial notes thereto included in LCNB's 2025 Annual Report on Form 10-K filed with the SEC.
Certain prior period amounts have been reclassified to conform to the current year presentation. Specifically, certain prior‑period income statement amounts previously classified as other non‑interest expense have been reclassified to computer maintenance and supplies expense to align with the current year’s presentation. These reclassifications do not impact the reported results of operations.
ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS
ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.”
ASU No. 2023-09 was issued in December 2023 and became effective for LCNB on January 1, 2025. The amendments require that public business entities on an annual basis (1) disclose specific categories in the rate reconciliation, and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income (or loss) by the applicable statutory income tax rate). The amendments require that all entities disclose on an annual basis the following information about income taxes paid: (1) the amount of income taxes paid (net of refunds received) disaggregated by federal (national), state, and foreign taxes; and (2) the amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than 5 percent of total income taxes paid (net of refunds received). The amendments also require that all entities disclose the following information: (1) income (or loss) from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign; and (2) income tax expense (or benefit) from continuing operations disaggregated by federal (national), state, and foreign. Adoption of ASU No. 2023-09 did not have a material impact to the financial statements of the Company.
ASU 2024-01 “Compensation - Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards,”
ASU No. 2024-01 was issued in March 2024 and became effective for LCNB on January 1, 2025. It clarifies how an entity determines whether a profits interest or similar award is within the scope of Topic 718 or is not a share-based payment arrangement and, therefore, is within the scope of other guidance. ASU 2024-01 provides an illustrative example with multiple fact patterns and also amends certain language in the “Scope” and “Scope Exceptions” sections of Topic 718 to improve its clarity and operability without changing the guidance. Entities can apply the amendments either retrospectively to all prior periods presented in the financial statements or prospectively to profits interest and similar awards granted or modified on or after the date of adoption. If prospective application is elected, an entity must disclose the nature of and reason for the change in accounting principle. Adoption of ASU No. 2024-01 did not have a material impact to the financial statements of the Company.
RECENT ACCOUNTING PRONOUNCEMENTS NOT YET EFFECTIVE
From time to time, the FASB issues an ASU to communicate changes to U.S. GAAP. The following information provides brief summaries of newly issued but not yet effective ASUs that could have an effect on LCNB's financial position or results of consolidated operations:
ASU 2025-08 “Financial Instruments — Credit Losses (Topic 326): Purchased Loans.”
In November 2025, the FASB issued ASU 2025-08 Financial Instruments—Credit Losses (Topic 326) — Purchased Loans (the "Update"). The amendments in this Update expand the population of acquired financial assets subject to the gross-up approach in Topic 326. In accordance with the amendments in this Update, loans (excluding credit cards) acquired without credit deterioration and deemed “seasoned” are purchased seasoned loans and accounted for using the gross-up approach at acquisition. All non-PCD (purchased financial asset with credit deterioration) loans (excluding credit cards) that are acquired in a business combination are deemed seasoned. Other non-PCD loans (excluding credit cards) are seasoned if they were purchased at least 90 days after origination and the acquirer was not involved in the origination of the loans. The amendments in this Update are effective for all entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. The amendments in this Update should be applied prospectively to loans that are acquired on or after the initial application date. Early adoption is permitted in an interim or annual reporting period in which financial statements have not yet been issued or made available for issuance. Management is currently evaluating the Update and does not expect adoption of the Update to have a material effect on the Company’s financial position or results of operations.
NOTE 2 - INVESTMENT SECURITIES
The amortized cost and estimated fair value of debt securities at June 30, 2026 and December 31, 2025 are summarized as follows (in thousands):
| Amortized Cost | Unrealized Gains | Unrealized Losses | Allowance for Credit Losses | Fair Value | ||||||||||||||||
| June 30, 2026 | ||||||||||||||||||||
| Debt Securities, Available-for-Sale: | ||||||||||||||||||||
| U.S. Treasury notes | $ | |||||||||||||||||||
| U.S. Agency notes | ||||||||||||||||||||
| Corporate bonds | ||||||||||||||||||||
| U.S. Agency mortgage-backed securities | ||||||||||||||||||||
| Municipal securities: | ||||||||||||||||||||
| Non-taxable | ||||||||||||||||||||
| Taxable | ||||||||||||||||||||
| $ | ||||||||||||||||||||
| Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | Allowance for Credit Losses | ||||||||||||||||
| Debt Securities, Held-to-Maturity: | ||||||||||||||||||||
| Municipal securities: | ||||||||||||||||||||
| Non-taxable | $ | |||||||||||||||||||
| Taxable | ||||||||||||||||||||
| $ | ||||||||||||||||||||
| Amortized Cost | Unrealized Gains | Unrealized Losses | Allowance for Credit Losses | Fair Value | ||||||||||||||||
| December 31, 2025 | ||||||||||||||||||||
| Debt Securities, Available-for-Sale: | ||||||||||||||||||||
| U.S. Treasury notes | $ | |||||||||||||||||||
| U.S. Agency notes | ||||||||||||||||||||
| Corporate Bonds | ||||||||||||||||||||
| U.S. Agency mortgage-backed securities | ||||||||||||||||||||
| Municipal securities: | ||||||||||||||||||||
| Non-taxable | ||||||||||||||||||||
| Taxable | ||||||||||||||||||||
| $ | ||||||||||||||||||||
| Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | Allowance for Credit Losses | ||||||||||||||||
| Debt Securities, Held-to-Maturity: | ||||||||||||||||||||
| Municipal securities: | ||||||||||||||||||||
| Non-taxable | $ | |||||||||||||||||||
| Taxable | ||||||||||||||||||||
| $ | ||||||||||||||||||||
The amortized cost of debt securities in the above table excludes accrued interest of $
NOTE 2 - INVESTMENT SECURITIES (continued)
Information concerning debt securities with gross unrealized losses at June 30, 2026 and December 31, 2025, aggregated by length of time that individual securities have been in a continuous loss position, is as follows (in thousands):
| Less than Twelve Months | Twelve Months or Greater | |||||||||||||||
| Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||
| June 30, 2026 | ||||||||||||||||
| Available-for-Sale: | ||||||||||||||||
| U.S. Treasury notes | $ | |||||||||||||||
| U.S. Agency notes | ||||||||||||||||
| Corporate bonds | ||||||||||||||||
| U.S. Agency mortgage-backed securities | ||||||||||||||||
| Municipal securities: | ||||||||||||||||
| Non-taxable | ||||||||||||||||
| Taxable | ||||||||||||||||
| $ | ||||||||||||||||
| Held-to-Maturity: | ||||||||||||||||
| Municipal securities: | ||||||||||||||||
| Non-taxable | $ | |||||||||||||||
| Taxable | ||||||||||||||||
| $ | ||||||||||||||||
| December 31, 2025 | ||||||||||||||||
| Available-for-Sale: | ||||||||||||||||
| U.S. Treasury notes | $ | |||||||||||||||
| U.S. Agency notes | ||||||||||||||||
| Corporate Bonds | ||||||||||||||||
| U.S. Agency mortgage-backed securities | ||||||||||||||||
| Municipal securities: | ||||||||||||||||
| Non-taxable | ||||||||||||||||
| Taxable | ||||||||||||||||
| $ | ||||||||||||||||
| Held-to-Maturity: | ||||||||||||||||
| Municipal securities: | ||||||||||||||||
| Non-taxable | $ | |||||||||||||||
| Taxable | ||||||||||||||||
| $ | ||||||||||||||||
At June 30, 2026, LCNB’s securities portfolio consisted of
NOTE 2 - INVESTMENT SECURITIES (continued)
Each quarter, LCNB performs an analysis to determine if any of the unrealized losses on available-for-sale debt securities are comprised of credit losses as compared to unrealized losses due to market interest rate adjustments. The assessment includes a review of the unrealized loss for each security issuance held; the financial condition and near-term prospects of the issuer, including external credit ratings and recent downgrades; and LCNB's ability and intent to hold the security for a period of time sufficient for a recovery in value. LCNB also considers the extent to which the securities are issued by the federal government or its agencies and any guarantee of issued amounts by those agencies. The portfolio continues to consist of a mix of fixed and floating-rate, high quality securities, largely rated AA (or better), displaying an overall effective duration of approximately
Debt securities with a market value of $
Excluding holdings in U.S. Treasury securities and U.S. government agencies, there were
Contractual maturities of debt securities at June 30, 2026 were as follows (in thousands). Actual maturities may differ from contractual maturities when issuers have the right to call or prepay obligations.
| Available-for-Sale | Held-to-Maturity | |||||||||||||||
| Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||
| Due within one year | $ | |||||||||||||||
| Due from one to five years | ||||||||||||||||
| Due from five to ten years | ||||||||||||||||
| Due after ten years | ||||||||||||||||
| 164,121 | 157,015 | 15,809 | 14,865 | |||||||||||||
| U.S. Agency mortgage-backed securities | ||||||||||||||||
| $ | 228,130 | 215,769 | 15,809 | 14,865 | ||||||||||||
There were
Realized gains or losses from the sale of securities are computed using the specific identification method.
NOTE 2 - INVESTMENT SECURITIES (continued)
Equity securities with a readily determinable fair value are carried at fair value, with changes in fair value recognized in other operating income in the consolidated condensed statements of income. Equity securities without a readily determinable fair value are measured at cost minus impairment, if any, plus or minus any changes resulting from observable price changes in orderly transactions, as defined, for identical or similar investments of the same issuer. LCNB was not aware of any impairment or observable price change adjustments that needed to be made at June 30, 2026 on its investments in equity securities without a readily determinable fair value.
The amortized cost and estimated fair value of equity securities with a readily determinable fair value at June 30, 2026 and December 31, 2025 are summarized as follows (in thousands):
| June 30, 2026 | December 31, 2025 | |||||||||||||||
| Amortized | Fair | Amortized | Fair | |||||||||||||
| Cost | Value | Cost | Value | |||||||||||||
| Mutual Funds | $ | |||||||||||||||
| Equity Securities | ||||||||||||||||
| Total equity securities with a readily determinable fair value | $ | |||||||||||||||
Certain information concerning changes in the fair value of equity securities with a readily determinable fair value for the three and six months ended June 30, 2026 and 2025 were as follows (in thousands):
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Net gains (losses) recognized during the period on equity securities | $ | ( | ) | |||||||||||||
| Less net gains (losses) recognized during the period on equity securities sold during the period | ||||||||||||||||
| Net unrealized gains (losses) recognized during the reporting period on equity securities still held at period end | $ | ( | ) | |||||||||||||
LCNB is a member of the FHLB system and its regional FRB. Members are required to own a certain amount of stock based on predetermined formulas. FHLB and FRB stock are carried at cost, which is equal to par value, and periodically evaluated for impairment based on ultimate recovery of par value.
NOTE 3 - LOANS
Major classifications of loans at June 30, 2026 and December 31, 2025 were as follows (in thousands):
| June 30, 2026 | December 31, 2025 | |||||||
| Commercial & industrial | $ | |||||||
| Commercial, secured by real estate: | ||||||||
| Owner occupied | ||||||||
| Non-owner occupied | ||||||||
| Farmland | ||||||||
| Multi-family | ||||||||
| Construction | ||||||||
| Residential real estate: | ||||||||
| Secured by senior liens on 1-4 family dwellings | ||||||||
| Secured by junior liens on 1-4 family dwellings | ||||||||
| Home equity line-of-credit loans | ||||||||
| Consumer | ||||||||
| Agricultural | ||||||||
| Other loans, including deposit overdrafts | ||||||||
| Loans, gross | ||||||||
| Less allowance for credit losses | ||||||||
| Loans, net | $ | |||||||
Loans in the above table are shown net of deferred origination fees and costs. Deferred origination fees, net of related costs, were $
NOTE 3 – LOANS (continued)
Non-accrual loans by class of receivable as of June 30, 2026 and December 31, 2025 were as follows (in thousands):
| June 30, 2026 | December 31, 2025 | |||||||||||||||
| Non-accrual | Non-accrual | |||||||||||||||
| Loans with no | Total | Loans with no | Total | |||||||||||||
| Allowance for | Non-accrual | Allowance for | Non-accrual | |||||||||||||
| Credit Losses | Loans | Credit Losses | Loans | |||||||||||||
| Commercial & industrial | $ | |||||||||||||||
| Commercial, secured by real estate: | ||||||||||||||||
| Owner occupied | ||||||||||||||||
| Non-owner occupied | ||||||||||||||||
| Farmland | ||||||||||||||||
| Multi-family | ||||||||||||||||
| Construction | ||||||||||||||||
| Residential real estate: | ||||||||||||||||
| Secured by senior liens on 1-4 family dwellings | ||||||||||||||||
| Secured by junior liens on 1-4 family dwellings | ||||||||||||||||
| Home equity line-of-credit loans | ||||||||||||||||
| Consumer | ||||||||||||||||
| Agricultural | ||||||||||||||||
| Total | $ | |||||||||||||||
Interest income recognized on nonaccrual loans totaled approximately $
The ratio of non-accrual loans to total loans outstanding at June 30, 2026 and December 31, 2025 was
ALLOWANCE FOR CREDIT LOSSES
The ACL is an estimate of the expected credit losses on financial assets measured at amortized cost, which is measured using relevant information about past events, including historical credit loss experience on financial assets with similar risk characteristics, current conditions, and reasonable and supportable forecasts that affect the collectability of the remaining cash flows over the contractual term of the financial assets. A provision for credit losses is charged to operations based on management’s periodic evaluation of these and other pertinent factors.
QUANTITATIVE CONSIDERATIONS
The ACL is primarily calculated utilizing a DCF model. Key inputs and assumptions used in this model are discussed below:
| • | Forecast model - For each portfolio segment, an LDA was performed in order to identify appropriate loss drivers and create a regression model for use in forecasting cash flows. The LDA utilized peer FFIEC Call Report data for all pools and was last updated for the September 30, 2025 ACL calculation based on relevant information available at June 30, 2025. |
NOTE 3 – LOANS (continued)
| • | Probability of default – PD is the probability that an asset will be in default within a given time frame. The Company has defined default as when a charge-off has occurred, a loan goes to non-accrual status, or a loan is greater than 90 days past due. The forecast model is utilized to estimate PDs. | |
| • | Loss given default – LGD is the percentage of the asset not expected to be collected due to default. The LGD is derived from company specific and peer loss data. | |
| • | Prepayments and curtailments – Prepayments and curtailments are calculated based on the Company’s own data. This analysis is updated when materially relevant. | |
| • | Forecast and reversion – There were no changes to the Company's forecast or reversion periods during the second quarter of 2026; as of June 30, 2026, the Company continues to utilize a four-quarter reasonable and supportable forecast period with a six-quarter straight line reversion to the long-term historical average. | |
| • | Economic forecast – The Company utilizes Moody's to provide economic forecasts under various scenarios, which are assessed against economic indicators and management’s observations in the market. For the quarter ended June 30, 2026, the Company selected a forecasted data model which projects unemployment between |
QUALITATIVE CONSIDERATIONS
In addition to the quantitative model, management considers the need for qualitative adjustment for risks not considered in the DCF calculation. Factors that are considered by management in determining loan collectability and the appropriate level of the ACL are listed below:
| • | Actual and expected changes in international, national, regional, and local economic and business conditions and developments in which the Company operates that affect the collectability of financial assets; | |
| • | The effect of other external factors such as the regulatory, legal and technological environments, competition, and events such as natural disasters or pandemics; | |
| • | Model risk including statistical risk, reversion risk, timing risk, and model limitation risk; | |
| • | Changes in the nature and volume of the portfolio and terms of loans; and | |
| • | Lending policies and procedures, including changes in underwriting standards and practices for collections, write-offs, and recoveries. |
NOTE 3 – LOANS (continued)
The following table presents activity in the allowance for credit losses by portfolio segment for the three and six months ended June 30, 2026 and 2025 (in thousands):
| Other Loans, | ||||||||||||||||||||||||||||
| Commercial, | Including | |||||||||||||||||||||||||||
| Commercial | Secured by | Residential | Deposit | |||||||||||||||||||||||||
| & Industrial | Real Estate | Real Estate | Consumer | Agricultural | Overdrafts | Total | ||||||||||||||||||||||
| Three Months Ended June 30, 2026 | ||||||||||||||||||||||||||||
| Balance, beginning of period | $ | |||||||||||||||||||||||||||
| Provision for (recovery of) credit losses | ( | ) | ( | ) | ||||||||||||||||||||||||
| Losses charged off | ( | ) | ( | ) | ||||||||||||||||||||||||
| Recoveries | ||||||||||||||||||||||||||||
| Balance, end of period | $ | |||||||||||||||||||||||||||
| Ratio of net charge-offs to average loans | % | % | % | ( | )% | % | % | % | ||||||||||||||||||||
| Six Months Ended June 30, 2026 | ||||||||||||||||||||||||||||
| Balance, beginning of period | $ | |||||||||||||||||||||||||||
| Provision for (recovery of) credit losses | ||||||||||||||||||||||||||||
| Losses charged off | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
| Recoveries | ||||||||||||||||||||||||||||
| Balance, end of period | $ | |||||||||||||||||||||||||||
| Ratio of net charge-offs to average loans | % | % | % | % | % | % | % | |||||||||||||||||||||
| Other Loans, | ||||||||||||||||||||||||||||
| Commercial, | Including | |||||||||||||||||||||||||||
| Commercial | Secured by | Residential | Deposit | |||||||||||||||||||||||||
| & Industrial | Real Estate | Real Estate | Consumer | Agricultural | Overdrafts | Total | ||||||||||||||||||||||
| Three Months Ended June 30, 2025 | ||||||||||||||||||||||||||||
| Balance, beginning of period | $ | |||||||||||||||||||||||||||
| Provision for (recovery of) credit losses | ( | ) | ||||||||||||||||||||||||||
| Losses charged off | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||
| Recoveries | ||||||||||||||||||||||||||||
| Balance, end of period | $ | |||||||||||||||||||||||||||
| Ratio of net charge-offs to average loans | % | % | % | % | % | % | % | |||||||||||||||||||||
| Six Months Ended June 30, 2025 | ||||||||||||||||||||||||||||
| Balance, beginning of year | $ | |||||||||||||||||||||||||||
| Provision for (recovery of) credit losses | ( | ) | ( | ) | ||||||||||||||||||||||||
| Losses charged off | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||
| Recoveries | ||||||||||||||||||||||||||||
| Balance, end of period | $ | |||||||||||||||||||||||||||
| Ratio of net charge-offs to average loans | % | % | % | % | % | % | % | |||||||||||||||||||||
NOTE 3 – LOANS (continued)
The ratio of the allowance for credit losses for loans to total loans at June 30, 2026 and December 31, 2025 was
For collateral dependent loans where management has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and repayment of the loan is to be provided substantially through the operation or sale of the collateral, the allowance for credit losses is measured based on the difference between the fair value of the collateral, less costs to sell, and the amortized cost basis of the loan as of the measurement date.
The following table presents the carrying value and related allowance of collateral dependent individually evaluated loans by class segment at the dates indicated (in thousands):
| June 30, 2026 | December 31, 2025 | |||||||||||||||
| Amortized | Related | Amortized | Related | |||||||||||||
| Cost Basis | Allowance | Cost Basis | Allowance | |||||||||||||
| Commercial & industrial | $ | |||||||||||||||
| Commercial, secured by real estate: | ||||||||||||||||
| Owner occupied | ||||||||||||||||
| Non-owner occupied | ||||||||||||||||
| Farmland | ||||||||||||||||
| Multi-family | ||||||||||||||||
| Construction | ||||||||||||||||
| Residential real estate: | ||||||||||||||||
| Secured by senior liens on 1-4 family dwellings | ||||||||||||||||
| Secured by junior liens on 1-4 family dwellings | ||||||||||||||||
| Home equity line-of-credit loans | ||||||||||||||||
| Consumer | ||||||||||||||||
| Agricultural | ||||||||||||||||
| Other loans, including deposit overdrafts | ||||||||||||||||
| Total | $ | |||||||||||||||
NOTE 3 – LOANS (continued)
The risk characteristics of LCNB's material loan portfolio segments were as follows:
Commercial & Industrial Loans. LCNB’s commercial & industrial loan portfolio consists of loans for a variety of purposes, including, for example, loans to fund working capital requirements (such as inventory and receivables financing) and purchases of machinery and equipment. LCNB offers a variety of commercial & industrial loan arrangements, including term loans, balloon loans, and lines of credit. Commercial & industrial loans can have a fixed or variable rate, with maturities ranging from one to ten years. Commercial & industrial loans are offered to businesses and professionals for short and medium terms on both a collateralized and uncollateralized basis. Commercial & industrial loans typically are underwritten on the basis of the borrower’s ability to make repayment from the cash flow of the business. Collateral, when obtained, may include liens on furniture, fixtures, equipment, inventory, receivables, or other assets. As a result, such loans involve complexities, variables, and risks that require thorough underwriting and more robust servicing than other types of loans.
Commercial, Secured by Real Estate Loans. Commercial real estate loans include loans secured by a variety of commercial, retail and office buildings, religious facilities, hotels, multifamily (more than four-family) residential properties, construction and land development loans, and other land loans. Mortgage loans secured by owner-occupied agricultural property are included in this category. Commercial real estate loan products generally amortize over five to twenty-five years and are payable in monthly principal and interest installments. Some have balloon payments due within one to ten years after the origination date. The majority have adjustable interest rates with adjustment periods ranging from one to ten years, some of which are subject to established “floor” interest rates.
Commercial real estate loans are underwritten based on the ability of the property, in the case of income-producing property, or the borrower’s business to generate sufficient cash flow to amortize the debt. Secondary emphasis is placed upon global debt service, collateral value, financial strength and liquidity of any and all guarantors, and other factors. Commercial real estate loans are generally originated with a
Residential Real Estate Loans. Residential real estate loans include loans secured by first or second mortgage liens on one to four-family residential properties. Home equity lines of credit are also included in this category. First and second mortgage loans are generally amortized over five to thirty years with monthly principal and interest payments. Home equity lines of credit generally have a five-year or less draw period with interest only payments followed by a repayment period with monthly payments based on the amount outstanding. LCNB offers both fixed and adjustable-rate mortgage loans. Adjustable-rate loans are available with adjustment periods ranging from one to fifteen years and adjust according to an established index plus a margin, subject to certain floor and ceiling rates. A substantial majority of home equity lines of credit have a variable rate of interest based on the Wall Street Journal Prime Rate plus a margin.
Residential real estate loans are underwritten primarily based on the borrower’s ability to repay, prior credit history, and the value of the collateral. LCNB generally requires private mortgage insurance for first mortgage loans that have a loan-to-appraised-value ratio of greater than
Consumer Loans. LCNB’s portfolio of consumer loans generally includes secured and unsecured loans to individuals for household, family and other personal expenditures. Secured loans include loans to fund the purchase of automobiles, recreational vehicles, boats, and similar acquisitions. Consumer loans made by LCNB generally have fixed rates and terms ranging up to
Agricultural Loans. LCNB’s portfolio of agricultural loans includes loans for financing agricultural production and for financing the purchase of equipment used in the production of agricultural products. LCNB’s agricultural loans are generally secured by farm machinery, livestock, crops, vehicles, or other agricultural-related collateral.
Other Loans, Including Deposit Overdrafts. Other loans may include loans that do not fit in any of the other categories, but the category is primarily composed of overdrafts from transaction deposit accounts. Overdraft payments are recorded as a recovery and overdrafts are generally written off after 60 days with a negative balance.
NOTE 3 – LOANS (continued)
LCNB’s management monitors the credit quality of its loans on an ongoing basis. This monitoring includes annual reviews for loans with a principal balance greater than $1 million and bi-annual reviews for loans with a principal balance of more than $500 thousand through $1 million. LCNB also has a loan grade monitoring system in place to track and report loan grades and classifications, enabling the identification and management of non-performing loans. Major factors used in determining loan grades vary based on the nature of the loan, but commonly include factors such as debt service coverage, internal cash flow, liquidity, leverage, operating performance, debt burden, FICO scores, occupancy, interest rate sensitivity, and expense burden. Commercial real estate loans rated OAEM or worse are reviewed at least quarterly for credit deterioration.
A loan is assigned to a risk category based on relevant information about the ability of the borrower to service the debt including, but not limited to, current financial information, historical payment experience, credit documentation, public information, and current economic trends. The categories used are:
| • | Pass – loans categorized in this category are higher quality loans that do not fit any of the other categories described below. | |
| • | Other Assets Especially Mentioned ("OAEM") – loans in this category are currently protected but are potentially weak. These loans constitute a risk but not to the point of justifying a classification of substandard. The credit risk may be relatively minor yet constitute an undue risk in light of the circumstances surrounding a specific asset. | |
| • | Substandard – loans in this category are inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the possibility that LCNB will sustain some loss if the deficiencies are not corrected. | |
| • | Doubtful – loans classified in this category have all the weaknesses inherent in loans classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. |
LCNB generally performs a classification of assets review, including the regulatory classification of assets, on an ongoing basis. The results of the classification of assets review are validated annually by an independent third-party loan review firm. In the event of a difference in rating or classification between those assigned by the internal and external resources, the Company will utilize the more critical or conservative rating or classification. Loans with regulatory classifications are presented monthly to the Board of Directors.
NOTE 3 – LOANS (continued)
The following table presents the amortized cost basis of loans by vintage and credit quality indicators at June 30, 2026 and December 31, 2025 (in thousands):
| Term Loans by Origination Year | ||||||||||||||||||||||||||||||||||||
| Revolving | Revolving | |||||||||||||||||||||||||||||||||||
| Loans | Loans | |||||||||||||||||||||||||||||||||||
| Amortized | Converted | |||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2024 | 2023 | 2022 | Prior | Cost Basis | to Term | Total | ||||||||||||||||||||||||||||
| June 30, 2026 | ||||||||||||||||||||||||||||||||||||
| Commercial & industrial | ||||||||||||||||||||||||||||||||||||
| Pass | $ | |||||||||||||||||||||||||||||||||||
| OAEM | ||||||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||||||
| Doubtful | ||||||||||||||||||||||||||||||||||||
| Total | ||||||||||||||||||||||||||||||||||||
| Gross charge-offs (1) | ||||||||||||||||||||||||||||||||||||
| Commercial, secured by real estate | ||||||||||||||||||||||||||||||||||||
| Pass | ||||||||||||||||||||||||||||||||||||
| OAEM | ||||||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||||||
| Doubtful | ||||||||||||||||||||||||||||||||||||
| Total | ||||||||||||||||||||||||||||||||||||
| Gross charge-offs (1) | ||||||||||||||||||||||||||||||||||||
| Residential real estate | ||||||||||||||||||||||||||||||||||||
| Pass | ||||||||||||||||||||||||||||||||||||
| OAEM | ||||||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||||||
| Doubtful | ||||||||||||||||||||||||||||||||||||
| Total | ||||||||||||||||||||||||||||||||||||
| Gross charge-offs (1) | ||||||||||||||||||||||||||||||||||||
| Consumer | ||||||||||||||||||||||||||||||||||||
| Pass | ||||||||||||||||||||||||||||||||||||
| OAEM | ||||||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||||||
| Doubtful | ||||||||||||||||||||||||||||||||||||
| Total | ||||||||||||||||||||||||||||||||||||
| Gross charge-offs (1) | ||||||||||||||||||||||||||||||||||||
| Agricultural | ||||||||||||||||||||||||||||||||||||
| Pass | ||||||||||||||||||||||||||||||||||||
| OAEM | ||||||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||||||
| Doubtful | ||||||||||||||||||||||||||||||||||||
| Total | ||||||||||||||||||||||||||||||||||||
| Gross charge-offs (1) | ||||||||||||||||||||||||||||||||||||
| Other | ||||||||||||||||||||||||||||||||||||
| Pass | ||||||||||||||||||||||||||||||||||||
| OAEM | ||||||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||||||
| Doubtful | ||||||||||||||||||||||||||||||||||||
| Total | ||||||||||||||||||||||||||||||||||||
| Gross charge-offs (1) | ||||||||||||||||||||||||||||||||||||
| Total loans | $ | |||||||||||||||||||||||||||||||||||
| (1) - for the six months ended June 30, 2026. |
NOTE 3 – LOANS (continued)
| Term Loans by Origination Year | ||||||||||||||||||||||||||||||||||||
| Revolving | Revolving | |||||||||||||||||||||||||||||||||||
| Loans | Loans | |||||||||||||||||||||||||||||||||||
| Amortized | Converted | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | 2022 | 2021 | Prior | Cost Basis | to Term | Total | ||||||||||||||||||||||||||||
| December 31, 2025 | ||||||||||||||||||||||||||||||||||||
| Commercial & industrial | ||||||||||||||||||||||||||||||||||||
| Pass | $ | |||||||||||||||||||||||||||||||||||
| OAEM | ||||||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||||||
| Doubtful | ||||||||||||||||||||||||||||||||||||
| Total | ||||||||||||||||||||||||||||||||||||
| Gross charge-offs (2) | ||||||||||||||||||||||||||||||||||||
| Commercial, secured by real estate | ||||||||||||||||||||||||||||||||||||
| Pass | ||||||||||||||||||||||||||||||||||||
| OAEM | ||||||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||||||
| Doubtful | ||||||||||||||||||||||||||||||||||||
| Total | ||||||||||||||||||||||||||||||||||||
| Gross charge-offs (2) | ||||||||||||||||||||||||||||||||||||
| Residential real estate | ||||||||||||||||||||||||||||||||||||
| Pass | ||||||||||||||||||||||||||||||||||||
| OAEM | ||||||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||||||
| Doubtful | ||||||||||||||||||||||||||||||||||||
| Total | ||||||||||||||||||||||||||||||||||||
| Gross charge-offs (2) | ||||||||||||||||||||||||||||||||||||
| Consumer | ||||||||||||||||||||||||||||||||||||
| Pass | ||||||||||||||||||||||||||||||||||||
| OAEM | ||||||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||||||
| Doubtful | ||||||||||||||||||||||||||||||||||||
| Total | ||||||||||||||||||||||||||||||||||||
| Gross charge-offs (2) | ||||||||||||||||||||||||||||||||||||
| Agricultural | ||||||||||||||||||||||||||||||||||||
| Pass | ||||||||||||||||||||||||||||||||||||
| OAEM | ||||||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||||||
| Doubtful | ||||||||||||||||||||||||||||||||||||
| Total | ||||||||||||||||||||||||||||||||||||
| Gross charge-offs (2) | ||||||||||||||||||||||||||||||||||||
| Other | ||||||||||||||||||||||||||||||||||||
| Pass | ||||||||||||||||||||||||||||||||||||
| OAEM | ||||||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||||||
| Doubtful | ||||||||||||||||||||||||||||||||||||
| Total | ||||||||||||||||||||||||||||||||||||
| Gross charge-offs (2) | ||||||||||||||||||||||||||||||||||||
| Total loans | $ | |||||||||||||||||||||||||||||||||||
| (2) - for the year ended December 31, 2025. |
NOTE 3 – LOANS (continued)
A loan portfolio aging analysis by class segment at June 30, 2026 and December 31, 2025 is as follows (in thousands):
| 90 Days | ||||||||||||||||||||||||||||
| 90 Days | or More | |||||||||||||||||||||||||||
| 30-59 Days | 60-89 Days | or More | Total | Total Loans | Past Due | |||||||||||||||||||||||
| Past Due | Past Due | Past Due | Past Due | Current | Receivable | and Accruing | ||||||||||||||||||||||
| June 30, 2026 | ||||||||||||||||||||||||||||
| Commercial & industrial | $ | |||||||||||||||||||||||||||
| Commercial, secured by real estate: | ||||||||||||||||||||||||||||
| Owner occupied | ||||||||||||||||||||||||||||
| Non-owner occupied | ||||||||||||||||||||||||||||
| Farmland | ||||||||||||||||||||||||||||
| Multi-family | ||||||||||||||||||||||||||||
| Construction | ||||||||||||||||||||||||||||
| Residential real estate: | ||||||||||||||||||||||||||||
| Secured by senior liens on 1-4 family dwellings | ||||||||||||||||||||||||||||
| Secured by junior liens on 1-4 family dwellings | ||||||||||||||||||||||||||||
| Home equity line-of-credit loans | ||||||||||||||||||||||||||||
| Consumer | ||||||||||||||||||||||||||||
| Agricultural | ||||||||||||||||||||||||||||
| Other | ||||||||||||||||||||||||||||
| Total | $ | |||||||||||||||||||||||||||
| December 31, 2025 | ||||||||||||||||||||||||||||
| Commercial & industrial | $ | |||||||||||||||||||||||||||
| Commercial, secured by real estate: | ||||||||||||||||||||||||||||
| Owner occupied | ||||||||||||||||||||||||||||
| Non-owner occupied | ||||||||||||||||||||||||||||
| Farmland | ||||||||||||||||||||||||||||
| Multi-family | ||||||||||||||||||||||||||||
| Construction | ||||||||||||||||||||||||||||
| Residential real estate | ||||||||||||||||||||||||||||
| Secured by senior liens on 1-4 family dwellings | ||||||||||||||||||||||||||||
| Secured by junior liens on 1-4 family dwellings | ||||||||||||||||||||||||||||
| Home equity line-of-credit loans | ||||||||||||||||||||||||||||
| Consumer | ||||||||||||||||||||||||||||
| Agricultural | ||||||||||||||||||||||||||||
| Other | ||||||||||||||||||||||||||||
| Total | $ | |||||||||||||||||||||||||||
Residential consumer mortgage loans secured by residential real estate in the process of foreclosure totaled $
NOTE 3 – LOANS (continued)
From time to time, the terms of certain loans are modified when concessions are granted to borrowers experiencing financial difficulties. Each modification is separately negotiated with the borrower and includes terms and conditions that reflect the borrower's ability to pay the debt as modified. The modification of the terms of such loans may have included one, or a combination of, the following: an interest rate reduction, term extension, forgiveness of principal, or an other-than-insignificant payment delay.
Excluding individually evaluated collateral dependent loans that are measured at fair value, the following tables present the amortized cost basis of loans modified during the reporting period for borrowers who were experiencing financial difficulty at the time of modification, disaggregated by class of financing receivable and type of concession granted (in thousands), as of June 30, 2026 and 2025.
| Interest Rate Reduction | Extended Maturity | Principal Forgiveness | Payment Delay | Combination - Interest Rate Reduction and Extended Maturity | Combination - Interest Rate Reduction and Payment Delay | Combination - Extended Maturity and Payment Delay | Total Modifications | Percent of Total Class | ||||||||||||||||||||||||||||
| Three Months Ended June 30, 2026 | ||||||||||||||||||||||||||||||||||||
| Commercial & industrial | $ | % | ||||||||||||||||||||||||||||||||||
| Residential real estate, secured by senior liens on 1-4 family dwellings | % | |||||||||||||||||||||||||||||||||||
| Consumer | % | |||||||||||||||||||||||||||||||||||
| Total | $ | |||||||||||||||||||||||||||||||||||
| Six Months Ended June 30, 2026 | ||||||||||||||||||||||||||||||||||||
| Commercial & industrial | $ | % | ||||||||||||||||||||||||||||||||||
| Residential real estate, secured by senior liens on 1-4 family dwellings | % | |||||||||||||||||||||||||||||||||||
| Consumer | % | |||||||||||||||||||||||||||||||||||
| Total | $ | |||||||||||||||||||||||||||||||||||
| Three Months Ended June 30, 2025 | ||||||||||||||||||||||||||||||||||||
| Commercial & industrial | $ | % | ||||||||||||||||||||||||||||||||||
| Commercial, secured by real estate, owner occupied | % | |||||||||||||||||||||||||||||||||||
| Total | $ | |||||||||||||||||||||||||||||||||||
| Six Months Ended June 30, 2025 | ||||||||||||||||||||||||||||||||||||
| Commercial & industrial | $ | % | ||||||||||||||||||||||||||||||||||
| Commercial, secured by real estate, non-owner occupied | % | |||||||||||||||||||||||||||||||||||
| Consumer | % | |||||||||||||||||||||||||||||||||||
| Total | $ | |||||||||||||||||||||||||||||||||||
During the first quarter of 2026, one borrower defaulted on a commercial and industrial loan that underwent payment-delay modifications during the first quarter of 2026 while the borrower was known to be experiencing financial difficulty. The amortized cost basis of this loan was zero at March 31, 2026 and remained zero at June 30, 2026. No other loans defaulted during the year-to-date period ended June 30, 2026, that, within twelve months prior to their default, were modified for borrowers experiencing financial difficulty.
During the third quarter of 2024, one borrower defaulted on two consumer loans that underwent maturity-extension and payment-delay modifications during the second quarter of 2024 while the borrower was known to be experiencing financial difficulty. The borrower remained in default through February 2025. At June 30, 2025, the amortized cost basis of these two consumer loans totaled $
At June 30, 2026 and December 31, 2025, LCNB was not committed to lend additional funds to borrowers who, during the respective six and twelve-month reporting periods, were granted loan modifications while experiencing financial difficulty.
Mortgage loans sold to and serviced for the Federal Home Loan Mortgage Corporation and other investors are not included in the accompanying consolidated condensed balance sheets. The unpaid principal balances of those loans at June 30, 2026 and December 31, 2025 were approximately $
NOTE 4 - PURCHASED CREDIT DETERIORATED LOANS
Activity during the three and six months ended June 30, 2026 and 2025 for the accretable discount related to PCD loans acquired from EFBI and CNNB is as follows (in thousands):
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Accretable discount, beginning of period | $ | | | |||||||||||||
| Less accretion | | | ||||||||||||||
| Accretable discount, end of period | $ | $ | | | ||||||||||||
NOTE 5 - AFFORDABLE HOUSING TAX CREDIT LIMITED PARTNERSHIP INVESTMENTS
LCNB is a limited partner in multiple limited partnerships that sponsor affordable housing projects utilizing the Low Income Housing Tax Credit pursuant to Section 42 of the Internal Revenue Code. The purpose of the investments is to achieve a satisfactory return on capital, to facilitate the sale of additional affordable housing product offerings, and to assist in achieving goals associated with the Community Reinvestment Act. The primary activities of the limited partnerships include the identification, development, and operation of multi-family housing that is leased to qualifying residential tenants.
The following table presents the balances of LCNB's affordable housing tax credit investments and related unfunded commitments at June 30, 2026 and December 31, 2025 (in thousands):
| June 30, | December 31, | |||||||
| 2026 | 2025 | |||||||
| Affordable housing tax credit investment | $ | |||||||
| Less amortization | ||||||||
| Net affordable housing tax credit investment | $ | |||||||
| Unfunded commitment | $ | |||||||
The net affordable housing tax credit investment is included in other assets and the unfunded commitment is included in accrued interest and other liabilities in the consolidated condensed balance sheets.
LCNB expects to fund the unfunded commitment over 17 years.
The following table presents other information relating to LCNB's affordable housing tax credit investments for the three and six months ended June 30, 2026 and 2025 (in thousands):
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Tax credits and other tax benefits recognized | $ | |||||||||||||||
| Tax credit amortization expense included in provision for income taxes | ||||||||||||||||
NOTE 6 - DEPOSITS
The following table presents the composition of LCNB's deposits at June 30, 2026 and December 31, 2025 (in thousands):
| June 30, | December 31, | |||||||
| 2026 | 2025 | |||||||
| Demand deposits | $ | |||||||
| Interest-bearing demand and money fund deposits | ||||||||
| Savings deposits | ||||||||
| IRA and time certificates | ||||||||
| Total | $ | |||||||
NOTE 6 - DEPOSITS (continued)
Contractual maturities of time deposits at June 30, 2026 were as follows (in thousands):
| Three months or less | $ | |||
| Over three through six months | ||||
| Over six through twelve months | ||||
| July 1, 2026 - June 30, 2027 | ||||
| July 1, 2027 - June 30, 2028 | ||||
| July 1, 2028 - June 30, 2029 | ||||
| July 1, 2029 - June 30, 2030 | ||||
| July 1, 2030 - June 30, 2031 | ||||
| Thereafter | ||||
| Total contractual maturities | $ |
The aggregate amount of time deposits in denominations of $250 thousand or more at June 30, 2026 and December 31, 2025 was $
NOTE 7 – BORROWINGS
Long-term debt at June 30, 2026 and December 31, 2025 was as follows (dollars in thousands):
| June 30, 2026 | December 31, 2025 | |||||||||||||||
| Amount | Weighted Average Interest Rate | Amount | Weighted Average Interest Rate | |||||||||||||
| Term loan | $ | % | $ | % | ||||||||||||
| FHLB long-term advances | % | % | ||||||||||||||
| $ | 103,836 | 4.97 | % | $ | 104,428 | 4.98 | % | |||||||||
The term loan with a correspondent financial institution bears a fixed interest rate of
Contractual maturities of long-term debt at June 30, 2026 and December 31, 2025 were as follows (in thousands):
| June 30, | December 31, | |||||||
| 2026 | 2025 | |||||||
| Maturing within one year | $ | |||||||
| Maturing after one year through two years | ||||||||
| Maturing after two years through three years | ||||||||
| Maturing after three years through four years | ||||||||
| Maturing after four years through five years | ||||||||
| Total | $ | |||||||
NOTE 7 – BORROWINGS (continued)
There were
At June 30, 2026, LCNB had a short-term revolving line of credit arrangement with a financial institution for a maximum amount of $
At June 30, 2026, LCNB had short-term line of credit borrowing arrangements with three correspondent financial institutions. Under the terms of the first arrangement, LCNB can borrow up to $
All long-term and short-term advances from the FHLB of Cincinnati are secured by a blanket pledge of LCNB's 1-4 family first lien mortgage loans in the amount of approximately $
NOTE 8 - LEASES
Lease expenses for offices are included in the consolidated condensed statements of income in net occupancy expense and lease expenses for equipment and ATMs are included in equipment expense. Components of lease expense for the three and six months ended June 30, 2026 and 2025 were as follows (in thousands):
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Operating lease expense | $ | |||||||||||||||
| Short-term lease expense | ||||||||||||||||
| Variable lease expense | ||||||||||||||||
| Other | ||||||||||||||||
| Total lease expense | $ | |||||||||||||||
Other information related to leases at June 30, 2026 were as follows (dollars in thousands):
| Cash paid for amounts included in the measurement of lease liabilities: | ||||
| Operating cash flows from operating leases | $ | |||
| Right-of-use assets obtained in exchange for new operating lease liabilities | $ | |||
| Weighted average remaining lease term in years for operating leases | ||||
| Weighted average discount rate for operating leases | % |
NOTE 9 – INCOME TAXES
A reconciliation between the statutory income tax and the Company's effective tax rate for the three and six months ended June 30, 2026 follows:
| Three Months Ended | Six Months Ended | |||||||||||||||
| Amount | Percent | Amount | Percent | |||||||||||||
| Federal statutory tax rate | $ | % | $ | % | ||||||||||||
| State and local income taxes, net of federal income tax effect | % | % | ||||||||||||||
| Tax credits: | ||||||||||||||||
| Low-income housing tax credits (a) | ( | ) | ( | )% | ( | ) | ( | )% | ||||||||
| Nontaxable or nondeductible items: | ||||||||||||||||
| Tax exempt interest | ( | ) | ( | )% | ( | ) | ( | )% | ||||||||
| Tax exempt income on bank-owned life insurance | ( | ) | ( | )% | ( | ) | ( | )% | ||||||||
| Captive insurance premium income | ( | ) | ( | )% | ( | ) | ( | )% | ||||||||
| Other, net | % | % | ||||||||||||||
| Total | $ | % | $ | % | ||||||||||||
(a) Net of amortization and tax benefits.
Effective tax rates differ from the federal statutory rate for the three and six months ended June 30, 2025 applied to income before income taxes due to the following:
| Three Months Ended | Six Months Ended | |||||||
| Statutory tax rate | % | % | ||||||
| Increase (decrease) resulting from: | ||||||||
| Tax exempt interest | ( | )% | ( | )% | ||||
| Tax exempt income on bank-owned life insurance | ( | )% | ( | )% | ||||
| Captive insurance premium income | ( | )% | ( | )% | ||||
| Affordable housing tax credit limited partnerships | ( | )% | ( | )% | ||||
| Nondeductible merger-related expenses | % | % | ||||||
| Other, net | % | % | ||||||
| Effective tax rate | % | % |
NOTE 10 - COMMITMENTS AND CONTINGENT LIABILITIES
LCNB is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated condensed balance sheets. Exposure to credit loss in the event of nonperformance by the other parties to financial instruments for commitments to extend credit is represented by the contract amount of those instruments.
In addition to such commitments to extend credit, LCNB may have services for customers in place that, though they obligate LCNB to provide credit on certain terms, do not constitute commitments to extend credit. For example, the Account Protection product, LCNB's deposit overdraft program, is offered as a service by LCNB and does not constitute a contract between the customer and LCNB.
LCNB uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments.
NOTE 10 – COMMITMENTS AND CONTINGENT LIABILITIES (continued)
Financial instruments whose contract amounts represent off-balance-sheet credit risk at June 30, 2026 and December 31, 2025 were as follows (in thousands):
| June 30, 2026 | December 31, 2025 | |||||||
| Commitments to extend credit: | ||||||||
| Commercial loans | $ | |||||||
| Other loans: | ||||||||
| Fixed rate | ||||||||
| Adjustable rate | ||||||||
| Unused lines of credit: | ||||||||
| Fixed rate | ||||||||
| Adjustable rate | ||||||||
| Unused overdraft protection amounts on demand accounts | ||||||||
| Standby letters of credit | ||||||||
| Total commitments | $ | |||||||
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Unused lines of credit include amounts not drawn on line-of-credit loans. Commitments to extend credit and unused lines of credit generally have fixed expiration dates or other termination clauses.
Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. These guarantees generally are fully secured and have varying maturities.
LCNB evaluates each customer's credit worthiness on a case-by-case basis. The amount of collateral obtained is based on management's credit evaluation of the borrower and may include accounts receivable; inventory, property, plant, and equipment; residential realty; and income-producing commercial properties.
Activity in the allowance for credit losses on off-balance sheet credit exposures, recorded in other liabilities on the consolidated condensed balance sheets, for the three and six months ended June 30, 2026 and 2025 is as follows (in thousands):
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Balance, beginning of period | $ | |||||||||||||||
| Provision for (recovery of) credit losses | ( | ) | ( | ) | ( | ) | ||||||||||
| Balance, end of period | $ | |||||||||||||||
Capital expenditures include the construction or acquisition of new office buildings, improvements to LCNB's offices, purchases of furniture and equipment, and additions or improvements to LCNB's information technology system. Commitments outstanding for capital expenditures as of June 30, 2026 totaled approximately $
Management believes that LCNB has sufficient liquidity to fund its lending and capital expenditure commitments.
LCNB and its subsidiaries are parties to various claims and proceedings arising in the normal course of business. Management, after consultation with legal counsel, believes that the liabilities, if any, arising from such proceedings and claims will not be material to LCNB's consolidated financial position or results of operations.
NOTE 11 – ACCUMULATED OTHER COMPREHENSIVE LOSS
Changes in accumulated other comprehensive loss for the three and six months ended June 30, 2026 and 2025 were as follows (in thousands):
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
| Changes in | Changes in | |||||||||||||||||||||||
| Unrealized | Pension Plan | Unrealized | Pension Plan | |||||||||||||||||||||
| Losses on | Assets and | Losses on | Assets and | |||||||||||||||||||||
| Available-for- | Benefit | Available-for- | Benefit | |||||||||||||||||||||
| Sale Debt Securities | Obligations | Total | Sale Debt Securities | Obligations | Total | |||||||||||||||||||
| 2026 | ||||||||||||||||||||||||
| Balance at beginning of period | $ | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||
| Other comprehensive income, net of taxes | ||||||||||||||||||||||||
| Balance at end of period | $ | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||
| 2025 | ||||||||||||||||||||||||
| Balance at beginning of period | $ | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||
| Other comprehensive income, net of taxes | ||||||||||||||||||||||||
| Balance at end of period | $ | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||
NOTE 12 – RETIREMENT PLANS
LCNB participated in a noncontributory defined benefit multi-employer retirement plan that covered substantially all regular full-time employees hired before January 1, 2009, on which date the plan was soft-frozen. The plan was then hard-frozen on March 1, 2025, at which time participants ceased accruing additional benefits. During the fourth quarter of 2025, the plan was temporarily unfrozen to permit amendments that enhanced benefits for active participants. The plan was subsequently refrozen effective November 30, 2025, and LCNB withdrew from the plan effective December 31, 2025.
Employees hired on or after January 1, 2009 receive a
NOTE 12 – RETIREMENT PLANS (continued)
Funding and administrative costs of the qualified noncontributory defined benefit retirement plan and 401(k) plan charged to pension and other employee benefits in the consolidated condensed statements of income for the three and six-month period ended June 30, 2026 and 2025 were as follows (in thousands):
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Qualified noncontributory defined benefit retirement plan | $ | |||||||||||||||
| 401(k) plan | ||||||||||||||||
Certain highly compensated former employees participate in a nonqualified defined benefit retirement plan. The nonqualified plan ensures that participants receive the full amount of benefits to which they would have been entitled under the noncontributory defined benefit retirement plan in the absence of limits on benefit levels imposed by certain sections of the Internal Revenue Code. This plan is limited to the original participants and no new participants have been added.
The net periodic pension cost of the nonqualified defined benefit retirement plan consists solely of interest cost of $
NOTE 13 – STOCK BASED COMPENSATION
The 2025 Ownership Incentive Plan (the "2025 Plan") was ratified by LCNB Corp.'s shareholders at the annual meeting on May 19, 2025 and allows for stock-based awards to eligible employees and non-employee directors, as determined by the Compensation Committee of the Board of Directors. The 2025 Plan replaced the 2015 Ownership Incentive Plan (the "2015 Plan"), which terminated on April 28, 2025. Awards may be made in the form of stock options, appreciation rights, restricted shares, and/or restricted share units. The 2025 Plan provides for the issuance of up to
Stock-based awards may be in the form of treasury shares or newly issued shares.
Restricted stock awards during the six months ended June 30, 2026 and 2025 were as follows:
| 2026 | 2025 | |||||||||||||||
| Weighted | Weighted | |||||||||||||||
| Average | Average | |||||||||||||||
| Grant Date | Grant Date | |||||||||||||||
| Shares | Fair Value | Shares | Fair Value | |||||||||||||
| Nonvested at January 1, | $ | |||||||||||||||
| Granted | ||||||||||||||||
| Vested | ( | ) | ( | ) | ||||||||||||
| Forfeited | ||||||||||||||||
| Nonvested at June 30, | ||||||||||||||||
At June 30, 2026, there were
NOTE 13 – STOCK BASED COMPENSATION (continued)
The following table presents expense recorded in salaries and employee benefits for restricted stock awards and the related tax information for the three and six months ended June 30, 2026 and 2025 (in thousands):
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Restricted stock expense | $ | |||||||||||||||
| Tax effect | ||||||||||||||||
Unrecognized compensation expense for restricted stock awards was $
NOTE 14 – EARNINGS PER COMMON SHARE
LCNB has granted restricted stock awards with non-forfeitable dividend rights, which are considered participating securities. Accordingly, earnings per share is computed using the two-class method as required by ASC No. 260-10-45. Basic earnings per common share is calculated by dividing net income allocated to common shareholders by the weighted average number of common shares outstanding during the period, which excludes the participating securities. Diluted earnings per common share is adjusted for the dilutive effects of stock options, warrants, and restricted stock. The diluted average number of common shares outstanding has been increased for the assumed exercise of stock options and warrants with proceeds used to purchase treasury shares at the average market price for the period.
Earnings per share for the three and six months ended June 30, 2026 and 2025 were calculated as follows (dollars in thousands, except share and per share data):
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Net income | $ | |||||||||||||||
| Less allocation of earnings and dividends to participating securities | ||||||||||||||||
| Net income allocated to common shareholders | $ | |||||||||||||||
| Weighted average common shares outstanding, gross | ||||||||||||||||
| Less average participating securities | ||||||||||||||||
| Adjusted weighted average number of shares outstanding used in the calculation of basic and diluted earnings per common share | ||||||||||||||||
| Earnings per common share: | ||||||||||||||||
| Basic | $ | |||||||||||||||
| Diluted | ||||||||||||||||
NOTE 15 - FAIR VALUE MEASUREMENTS
LCNB measures certain assets at fair value using various valuation techniques and assumptions, depending on the nature of the asset. Fair value is defined as the price that would be received from the sale of an asset in an orderly transaction between market participants at the measurement date.
The inputs to the valuation techniques used to measure fair value are assigned to one of three broad levels:
| • | Level 1 – quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the reporting date. |
| • | Level 2 – inputs other than quoted prices included within level 1 that are observable for the asset or liability either directly or indirectly. Level 2 inputs may include quoted prices for similar assets in active markets, quoted prices for identical assets or liabilities in markets that are not active, inputs other than quoted prices (such as interest rates or yield curves) that are observable for the asset or liability, and inputs that are derived from or corroborated by observable market data. |
| • | Level 3 – inputs that are unobservable for the asset or liability. |
EQUITY SECURITIES WITH A READILY DETERMINABLE FAIR VALUE
Equity securities with a readily determinable fair value are reported at fair value with changes in fair value reported in other operating income in the consolidated condensed statements of income. Fair values for equity securities are determined based on market quotations (level 1). LCNB has an investment in a mutual fund that is measured at fair value using net asset values, which are considered level 1 because the net asset values are determined and published and are the basis for current transactions.
DEBT SECURITIES, AVAILABLE-FOR-SALE
The majority of LCNB's financial debt securities are classified as available-for-sale. The securities are reported at fair value with unrealized holding gains and losses reported net of income taxes in accumulated other comprehensive loss. LCNB utilizes a pricing service for determining the fair values of its debt securities. Methods and significant assumptions used to estimate fair value were as follows:
| • | Fair values for U.S. Treasury notes are determined based on market quotations (level 1). | |
| • | Fair values for the other debt securities are calculated using the discounted cash flow method for each security. The discount rates for these cash flows are estimated by the pricing service using rates observed in the market (level 2). Cash flow streams are dependent on estimated prepayment speeds and the overall structure of the securities given existing market conditions. |
ASSETS RECORDED AT FAIR VALUE ON A NONRECURRING BASIS
Assets that may be recorded at fair value on a nonrecurring basis include individually evaluated collateral dependent loans (or impaired loans prior to the adoption of ASC 326), other real estate owned, and other repossessed assets.
LCNB does not record loans at fair value on a recurring basis, except for loans held-for-sale. However, from time to time, nonrecurring fair value adjustments to collateral dependent loans are recorded to reflect partial write-downs or specific reserves that are based on the observable market price or current estimated value of the collateral. These loans are reported in the nonrecurring table below at initial recognition of significant borrower distress and on an ongoing basis until recovery or charge-off. The fair values of distressed loans are determined using either the sales comparison approach or income approach. Respective unobservable inputs for the approaches consist of adjustments for differences between comparable sales and the utilization of appropriate capitalization rates.
NOTE 15 - FAIR VALUE MEASUREMENTS (continued)
The following table summarizes the valuation of LCNB's assets recorded at fair value by input levels as of June 30, 2026 and December 31, 2025 (in thousands):
| Fair Value Measurements at the End of | ||||||||||||||||
| the Reporting Period Using | ||||||||||||||||
| Quoted Prices | Significant | |||||||||||||||
| in Active | Other | Significant | ||||||||||||||
| Markets for | Observable | Unobservable | ||||||||||||||
| Fair Value | Identical Assets | Inputs | Inputs | |||||||||||||
| Measurements | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
| June 30, 2026 | ||||||||||||||||
| Recurring fair value measurements: | ||||||||||||||||
| Equity securities with a readily determinable fair value: | ||||||||||||||||
| Equity securities | $ | |||||||||||||||
| Mutual funds measured at net asset value | ||||||||||||||||
| Debt securities, available-for-sale: | ||||||||||||||||
| U.S. Treasury notes | ||||||||||||||||
| U.S. Agency notes | ||||||||||||||||
| Corporate bonds | ||||||||||||||||
| U.S. Agency mortgage-backed securities | ||||||||||||||||
| Municipal securities: | ||||||||||||||||
| Non-taxable | ||||||||||||||||
| Taxable | ||||||||||||||||
| Other assets: | ||||||||||||||||
| Lender Risk Account | ||||||||||||||||
| Total recurring fair value measurements | $ | |||||||||||||||
| Nonrecurring fair value measurements: | ||||||||||||||||
| Individually evaluated collateral dependent loans | $ | |||||||||||||||
| Total nonrecurring fair value measurements | $ | |||||||||||||||
| December 31, 2025 | ||||||||||||||||
| Recurring fair value measurements: | ||||||||||||||||
| Equity securities with a readily determinable fair value: | ||||||||||||||||
| Equity securities | $ | |||||||||||||||
| Mutual funds measured at net asset value | ||||||||||||||||
| Debt securities, available-for-sale: | ||||||||||||||||
| U.S. Treasury notes | ||||||||||||||||
| U.S. Agency notes | ||||||||||||||||
| Corporate bonds | ||||||||||||||||
| U.S. Agency mortgage-backed securities | ||||||||||||||||
| Municipal securities: | ||||||||||||||||
| Non-taxable | ||||||||||||||||
| Taxable | ||||||||||||||||
| Other assets: | ||||||||||||||||
| Lender Risk Account | ||||||||||||||||
| Total recurring fair value measurements | $ | |||||||||||||||
| Nonrecurring fair value measurements: | ||||||||||||||||
| Individually evaluated collateral dependent loans | $ | |||||||||||||||
| Total nonrecurring fair value measurements | $ | |||||||||||||||
NOTE 15 - FAIR VALUE MEASUREMENTS (continued)
The following table presents quantitative information about unobservable inputs used in nonrecurring level 3 fair value measurements at June 30, 2026 and December 31, 2025 (dollars in thousands):
| Range | |||||||||||||
| Valuation | Unobservable | Weighted | |||||||||||
| Fair Value | Technique | Inputs | High | Low | Average | ||||||||
| June 30, 2026 | |||||||||||||
| Individually evaluated collateral dependent loans | $ | Estimated sales price | Adjustments for comparable properties, discounts to reflect current market conditions | Not applicable | |||||||||
| December 31, 2025 | |||||||||||||
| Individually evaluated collateral dependent loans | $ | Estimated sales price | Adjustments for comparable properties, discounts to reflect current market conditions | Not applicable | |||||||||
Carrying amounts and estimated fair values of financial instruments as of June 30, 2026 and December 31, 2025 were as follows (in thousands):
| Fair Value Measurements at the End of | ||||||||||||||||||||
| the Reporting Period Using | ||||||||||||||||||||
| Quoted | ||||||||||||||||||||
| Prices | Significant | |||||||||||||||||||
| in Active | Other | Significant | ||||||||||||||||||
| Markets for | Observable | Unobservable | ||||||||||||||||||
| Carrying | Fair | Identical Assets | Inputs | Inputs | ||||||||||||||||
| Amount | Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||
| June 30, 2026 | ||||||||||||||||||||
| FINANCIAL ASSETS: | ||||||||||||||||||||
| Cash and cash equivalents | $ | |||||||||||||||||||
| Debt securities, held-to-maturity, net | ||||||||||||||||||||
| Loans held-for-sale | ||||||||||||||||||||
| Loans, net | ||||||||||||||||||||
| Accrued interest receivable | ||||||||||||||||||||
| Lender risk account | ||||||||||||||||||||
| FINANCIAL LIABILITIES: | ||||||||||||||||||||
| Deposits | ||||||||||||||||||||
| Long-term debt | ||||||||||||||||||||
| Accrued interest payable | ||||||||||||||||||||
| December 31, 2025 | ||||||||||||||||||||
| FINANCIAL ASSETS: | ||||||||||||||||||||
| Cash and cash equivalents | $ | |||||||||||||||||||
| Debt securities, held-to-maturity, net | ||||||||||||||||||||
| Loans held-for-sale | ||||||||||||||||||||
| Loans, net | ||||||||||||||||||||
| Accrued interest receivable | ||||||||||||||||||||
| Lender risk account | ||||||||||||||||||||
| FINANCIAL LIABILITIES: | ||||||||||||||||||||
| Deposits | ||||||||||||||||||||
| Long-term debt | ||||||||||||||||||||
| Accrued interest payable | ||||||||||||||||||||
The methodology to derive the fair value of loans at June 30, 2026 and December 31, 2025 is consistent with the methodology utilized to determine the fair value of loans acquired in the Company’s acquisitions of CNNB and EFBI.
Fair values of financial instruments are based on various assumptions, including the discount rate and estimates of future cash flows. Therefore, the fair values presented may not represent amounts that could be realized in actual transactions. In addition, because the required disclosures exclude certain financial instruments and all nonfinancial instruments, any aggregation of the fair value amounts presented would not represent the underlying value of LCNB.
NOTE 16 - SEGMENT INFORMATION
LCNB has one reportable segment, which is determined by the members of the executive team who, as a group, act as the designated chief operating decision makers. Based upon information provided about LCNB's products and services offered, the reportable segment is primarily banking operations. The segment is also distinguished by the level of information provided to the chief operating decision makers, who use such information to review performance of various components of the business, such as branches, which are then aggregated if operating performance, products and services, and customers are similar. The chief operating decision makers will evaluate the financial performance of LCNB's business components by evaluating revenue streams, significant expenses, and budget to actual results in assessing LCNB's segment and in determining the allocation of resources. The chief operating decision makers use revenue streams to evaluate product pricing and significant expenses to assess performance and evaluate return on assets. The chief operating decision makers use consolidated net income to benchmark LCNB against its competitors. The benchmarking analysis coupled with monitoring of budget to actual results are used in assessing performance and in establishing compensation. Loans, investments, fiduciary income, and deposit service charges and fees provide the significant revenues in the banking operation. Interest expense, provisions for credit losses, and payroll provide the significant expenses in the banking operation. All operations are domestic.
Accounting policies for the reportable segment are the same as those described in Note 1 of Form 10-K for the year ended December 31, 2025. Segment performance is evaluated using consolidated net income.
NOTE 17 - Subsequent events
Subsequent to June 30, 2026, the Company and its advisors have been negotiating the terms of a proposed debt financing. The Company anticipates entering into a definitive purchase agreement on August 7, 2026 pursuant to which it will issue and sell, in an unregistered private placement of securities, $
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Forward Looking Statements
Certain statements made in this document 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, including 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 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.
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (continued)
Critical Accounting Estimates
The accounting policies of LCNB conform to U.S. generally accepted accounting principles and require management to make estimates and develop assumptions that affect the amounts reported in the financial statements and related footnotes. These estimates and assumptions are based on information available to management as of the date of the financial statements. Actual results could differ significantly from management’s estimates. As this information changes, management’s estimates and assumptions used to prepare LCNB’s financial statements and related disclosures may also change. The most significant accounting policies followed by LCNB are presented in Note 1 of the Notes to Consolidated Financial Statements included in LCNB's 2025 Annual Report on Form 10-K filed with the SEC. Based on the valuation techniques used and the sensitivity of financial statement amounts to the methods, assumptions, and estimates underlying those amounts, management has identified the items described below to be the accounting areas that require the most subjective or complex judgments and, as such, could be most subject to revision as new information becomes available.
Allowance for Credit Losses. The allowance is maintained at a level LCNB management believes is adequate to absorb estimated credit losses identified and inherent in the loan portfolio. The allowance is established through a provision for credit losses charged to expense. Loans are charged against the allowance for credit losses when management believes that the collectability of the principal is unlikely. Subsequent recoveries, if any, are credited to the allowance. The allowance is an amount that management believes will be adequate to absorb estimated losses over the contractual terms in the loan portfolio based on evaluations of the collectability of loans and prior loan loss experience. The evaluations take into consideration such factors as changes in the nature and volume of the loan portfolio, overall portfolio quality, review of specific problem loans, and current and forecasted economic conditions that may affect the borrowers' ability to pay. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available.
See Note 1 - Summary of Significant Accounting Policies - Allowance for Credit Losses on Loans in the 2025 Annual Report on Form 10-K for further detailed descriptions of LCNB's estimation process and methodology related to the allowance. See also Note 3 – Loans in this Quarterly Report on Form 10-Q for further information regarding LCNB's loan portfolio and allowance.
Accounting for Intangibles. LCNB’s intangible assets are composed primarily of goodwill and core deposit intangibles related to acquisitions of other financial institutions.
Accounting rules require LCNB to determine the fair value of all the assets and liabilities of an acquired entity and to record their fair values on the date of acquisition. LCNB employs a variety of means in determining fair values, including the use of discounted cash flow analysis, market comparisons, and projected future revenue streams. For those items for which management concludes that LCNB has the appropriate expertise to determine fair value, management may choose to use its own calculation of fair value. In other cases, where the fair value is not readily determined, consultation with outside parties is used to determine fair value. Once valuations have been determined, the net difference between the price paid for the acquired entity and the fair value of the balance sheet is recorded as goodwill. Goodwill is assessed at least annually for impairment, with any such impairment recognized in the period identified. A more frequent assessment is performed if there are material changes in the marketplace or within the organizational structure.
Core deposit intangibles acquired from business combinations are initially measured at their estimated fair values and are then amortized on a straight-line basis over their estimated useful lives. Management evaluates whether triggering events or circumstances have occurred that indicate the remaining useful life or carrying value of the amortizing intangible should be revised.
Fair Value Accounting for Debt Securities. Debt securities classified as available-for-sale are recorded at fair value with unrealized gains and losses recorded in other comprehensive income (loss), net of tax. Available-for-sale debt securities in unrealized loss positions are evaluated to determine if the decline in fair value should be recorded in income or in other comprehensive income (loss). LCNB first determines if it intends to sell or if it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either criteria is met, the security's amortized cost basis is written down to fair value through income. If neither of these criteria is met, LCNB evaluates whether the decline in fair value resulted from credit factors. In making this determination, management considers, among other factors, the extent to which fair value is less than the amortized cost basis, any changes to the rating of the security by rating agencies, and any adverse conditions specifically related to the security or issuer. If the present value of cash flows expected to be collected is less than the amortized cost basis, a provision is recorded to the allowance for credit losses. Any decline in fair value not recorded through an allowance for credit losses is recognized in accumulated other comprehensive income (loss), net of applicable taxes.
Loans Held-For-Sale. Loans held-for-sale (“LHFS”) represent mortgage loans intended to be sold in the secondary market and other loans that management has an active plan to sell. LHFS are carried at the lower of cost or fair value as determined on an aggregate basis by type of loan. Any writedowns to fair value upon the transfer of loans to LHFS are reflected in loan charge-offs. Any further decreases are recognized in non-interest income and increases in fair value above the loan cost basis are not recognized until the loans are sold.
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (continued)
Results of Operations
Net income for the three and six months ended June 30, 2026 was $7.5 million and $11.9 million, respectively (total basic and diluted earnings per share of $0.53 and $0.84, respectively). This compares to net income of $5.9 million and $10.5 million (total basic and diluted earnings per share of $0.41 and $0.74) for the same respective three and six-month periods in 2025.
Net interest income for the three and six months ended June 30, 2026 was $19.8 million and $38.6 million, respectively. This compares to net interest income of $17.5 million and $33.8 million for the same respective three and six-month periods in 2025. The growth in net interest income was primarily due to an increase in the average yield on earning assets, a reduction in interest-bearing liabilities, and a decrease in the average rate paid on interest-bearing liabilities. LCNB's tax equivalent net interest margin for the three and six-months ended June 30, 2026 was 3.99% and 3.91%, respectively, compared to 3.47% and 3.36% for the same respective periods in 2025.
LCNB recorded a provision for credit losses of $276 thousand and $2.6 million for the three and six months ended June 30, 2026, respectively. This compares to a provision for credit losses of $18 thousand and $215 thousand for the same respective three and six month periods in 2025. The provision expense for the six-month period in 2026 was primarily driven by specific reserves related to four participated loans recognized during the first quarter of 2026.
Non-interest income for the three and six months ended June 30, 2026 was $5.4 million and $10.0 million, respectively. This compares to non-interest income of $5.2 million and $10.5 million for the same respective periods in 2025. The decrease during the six-month period was primarily due to lower net gains from sales of loans and lower service charges and fees recognized on deposit accounts, partially offset by higher fiduciary income.
Non-interest expense for the three and six months ended June 30, 2026 was $15.7 million and $31.6 million, respectively. This compares to non-interest expense of $15.6 million and $31.4 million for the same respective three and six-month periods in 2025. The increase was primarily due to higher salaries and employee benefits, computer maintenance and supplies, and contracted services expenses, largely offset by lower intangible asset amortization, reduced merger-related expenses, and lower FDIC insurance premiums.
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (continued)
Net Interest Income
Three Months Ended June 30, 2026 vs. June 30, 2025
LCNB's primary source of earnings is net interest income, which is the difference between earnings from loans and other investments and interest paid on deposits and other liabilities. The following table presents, for the three months ended June 30, 2026 and June 30, 2025, average balances for interest-earning assets and interest-bearing liabilities, the income or expense related to each item, and the resulting average yields earned or rates paid.
| Three Months Ended June 30, |
||||||||||||||||||||||||
| 2026 |
2025 |
|||||||||||||||||||||||
| Average |
Interest |
Average |
Average |
Interest |
Average |
|||||||||||||||||||
| Outstanding |
Earned/ |
Yield/ |
Outstanding |
Earned/ |
Yield/ |
|||||||||||||||||||
| Balance |
Paid |
Rate |
Balance |
Paid |
Rate |
|||||||||||||||||||
| (Dollars in thousands) |
||||||||||||||||||||||||
| Loans (1) |
$ | 1,706,541 | 24,345 | 5.72 | % | $ | 1,718,959 | 23,838 | 5.56 | % | ||||||||||||||
| Interest-bearing demand deposits |
9,524 | 96 | 4.04 | % | 9,573 | 140 | 5.87 | % | ||||||||||||||||
| Interest-bearing time deposits |
2,896 | 26 | 3.60 | % | 254 | 6 | 9.47 | % | ||||||||||||||||
| Federal Reserve Bank stock |
6,405 | 98 | 6.14 | % | 6,405 | 98 | 6.14 | % | ||||||||||||||||
| Federal Home Loan Bank stock |
20,710 | 383 | 7.42 | % | 20,710 | 447 | 8.66 | % | ||||||||||||||||
| Investment securities: |
||||||||||||||||||||||||
| Equity securities |
5,099 | 33 | 2.60 | % | 5,053 | 36 | 2.86 | % | ||||||||||||||||
| Debt securities, taxable |
224,414 | 1,207 | 2.16 | % | 251,920 | 1,213 | 1.93 | % | ||||||||||||||||
| Debt securities, non-taxable (2) |
15,925 | 182 | 4.58 | % | 18,387 | 204 | 4.45 | % | ||||||||||||||||
| Total earnings assets |
1,991,514 | 26,370 | 5.31 | % | 2,031,261 | 25,982 | 5.13 | % | ||||||||||||||||
| Non-earning assets |
260,436 | 271,147 | ||||||||||||||||||||||
| Allowance for credit losses |
(13,387 | ) | (12,123 | ) | ||||||||||||||||||||
| Total assets |
$ | 2,238,563 | $ | 2,290,285 | ||||||||||||||||||||
| Interest-bearing demand and money market deposits |
$ | 648,548 | 2,197 | 1.36 | % | $ | 603,066 | 2,374 | 1.58 | % | ||||||||||||||
| Savings deposits |
355,129 | 220 | 0.25 | % | 363,679 | 199 | 0.22 | % | ||||||||||||||||
| IRA and time certificates |
351,311 | 2,803 | 3.20 | % | 466,065 | 4,546 | 3.91 | % | ||||||||||||||||
| Short-term borrowings |
— | — | 0.00 | % | 63 | 1 | 6.37 | % | ||||||||||||||||
| Long-term debt |
104,080 | 1,321 | 5.09 | % | 104,701 | 1,278 | 4.90 | % | ||||||||||||||||
| Total interest-bearing liabilities |
1,459,068 | 6,541 | 1.80 | % | 1,537,574 | 8,398 | 2.19 | % | ||||||||||||||||
| Demand deposits |
479,722 | 473,495 | ||||||||||||||||||||||
| Other liabilities |
20,824 | 18,023 | ||||||||||||||||||||||
| Equity |
278,949 | 261,193 | ||||||||||||||||||||||
| Total liabilities and equity |
$ | 2,238,563 | $ | 2,290,285 | ||||||||||||||||||||
| Net interest rate spread (3) |
3.51 | % | 2.94 | % | ||||||||||||||||||||
| Net interest income and net interest margin on a taxable-equivalent basis (4) |
19,829 | 3.99 | % | 17,584 | 3.47 | % | ||||||||||||||||||
| Ratio of interest-earning assets to interest-bearing liabilities |
136.49 | % | 132.11 | % | ||||||||||||||||||||
| (1) |
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. |
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (continued)
The following table presents the changes in taxable-equivalent basis interest income and expense for each major category of interest-earning assets and interest-bearing liabilities and the amount of change attributable to volume and rate changes for the three months ended June 30, 2026 as compared to the same period in 2025. Changes not solely attributable to rate or volume have been allocated to volume and rate changes in proportion to the relationship of absolute dollar amounts of the changes in each.
| Three Months Ended |
||||||||||||
| June 30, 2026 vs. 2025 |
||||||||||||
| Increase (decrease) attributable to: |
||||||||||||
| Volume |
Rate |
Total |
||||||||||
| (In thousands) |
||||||||||||
| Interest-earning Assets: |
||||||||||||
| Loans |
$ | (173 | ) | 680 | 507 | |||||||
| Interest-bearing demand deposits |
(1 | ) | (43 | ) | (44 | ) | ||||||
| Interest-bearing time deposits |
26 | (6 | ) | 20 | ||||||||
| Federal Reserve Bank stock |
— | — | — | |||||||||
| Federal Home Loan Bank stock |
— | (64 | ) | (64 | ) | |||||||
| Investment securities: |
||||||||||||
| Equity securities |
— | (3 | ) | (3 | ) | |||||||
| Debt securities, taxable |
(140 | ) | 134 | (6 | ) | |||||||
| Debt securities, non-taxable |
(28 | ) | 6 | (22 | ) | |||||||
| Total interest income |
(316 | ) | 704 | 388 | ||||||||
| Interest-bearing Liabilities: |
||||||||||||
| Interest-bearing demand and money market deposits |
170 | (347 | ) | (177 | ) | |||||||
| Savings deposits |
(5 | ) | 26 | 21 | ||||||||
| IRA and time certificates |
(1,002 | ) | (741 | ) | (1,743 | ) | ||||||
| Short-term borrowings |
(1 | ) | — | (1 | ) | |||||||
| Long-term debt |
(8 | ) | 51 | 43 | ||||||||
| Total interest expense |
(846 | ) | (1,011 | ) | (1,857 | ) | ||||||
| Net interest income |
$ | 530 | 1,715 | 2,245 | ||||||||
Net interest income on a fully taxable-equivalent basis for the three months ended June 30, 2026 totaled $19.8 million, an increase of $2.2 million from the comparable period in 2025. Total interest expense decreased $1.9 million, with interest income increasing $388 thousand.
The $388 thousand increase in total interest income was primarily due to a 16 basis point (a basis point equals 0.01%) increase in the average rate earned on the loan portfolio, partially offset by a $12.4 million decrease in average loan balances. The increase in the average loan yield included a $120 thousand increase in accretion income on acquired loans compared to the prior year period. Excluding accretion income in both periods, the average loan yield increased 13 basis points year over year.
The $1.9 million decrease in total interest expense was primarily due to a $114.8 million decrease in average IRA and time certificate deposits and to a 71 basis point decrease in the average rate paid for these deposits. This decrease reflects the strategic runoff of higher-cost certificates and IRA balances as part of LCNB's funding optimization strategy.
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (continued)
Six Months Ended June 30, 2026 vs. June 30, 2025
The following table presents, for the six months ended June 30, 2026 and 2025, average balances for interest-earning assets and interest-bearing liabilities, the income or expense related to each item, and the resulting average yields earned or rates paid.
| 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 |
|||||||||||||||||||
| (Dollars in thousands) |
||||||||||||||||||||||||
| 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) |
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. |
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (continued)
The following table presents the changes in taxable-equivalent basis interest income and expense for each major category of interest-earning assets and interest-bearing liabilities and the amount of change attributable to volume and rate changes for the six months ended June 30, 2026 as compared to the same period in 2025. Changes not solely attributable to rate or volume have been allocated to volume and rate changes in proportion to the relationship of absolute dollar amounts of the changes in each.
| Six Months Ended |
||||||||||||
| June 30, 2026 vs. 2025 |
||||||||||||
| Increase (decrease) attributable to: |
||||||||||||
| Volume |
Rate |
Total |
||||||||||
| (In thousands) |
||||||||||||
| Interest-earning Assets: |
||||||||||||
| Loans |
$ | (362 | ) | 1,121 | 759 | |||||||
| Interest-bearing demand deposits |
27 | (96 | ) | (69 | ) | |||||||
| Interest-bearing time deposits |
47 | (2 | ) | 45 | ||||||||
| Federal Reserve Bank stock |
— | — | — | |||||||||
| Federal Home Loan Bank stock |
— | (140 | ) | (140 | ) | |||||||
| Investment securities: |
||||||||||||
| Equity securities |
1 | (6 | ) | (5 | ) | |||||||
| Debt securities, taxable |
(264 | ) | 198 | (66 | ) | |||||||
| Debt securities, non-taxable |
(40 | ) | 18 | (22 | ) | |||||||
| Total interest income |
(591 | ) | 1,093 | 502 | ||||||||
| Interest-bearing Liabilities: |
||||||||||||
| Interest-bearing demand and money market deposits |
588 | (637 | ) | (49 | ) | |||||||
| Savings deposits |
(10 | ) | 42 | 32 | ||||||||
| IRA and time certificates |
(2,346 | ) | (1,814 | ) | (4,160 | ) | ||||||
| Short-term borrowings |
45 | (1 | ) | 44 | ||||||||
| Long-term debt |
(285 | ) | 127 | (158 | ) | |||||||
| Total interest expense |
(2,008 | ) | (2,283 | ) | (4,291 | ) | ||||||
| Net interest income |
$ | 1,417 | 3,376 | 4,793 | ||||||||
Net interest income on a fully taxable-equivalent basis for the six months ended June 30, 2026 totaled $38.7 million, an increase of $4.8 million from the comparable period in 2025. Total interest income increased $502 thousand and total interest expense decreased $4.3 million.
The $502 thousand increase in total interest income was primarily due to a $759 thousand increase in loan interest income. This increase was primarily due to a 13 basis point increase in the average rate earned on the loan portfolio, partially offset by a $13.2 million decrease in average loan balances. Included in the increase in the average loan yield was an $83 thousand increase in accretion income recognized on acquired loans compared to the prior year period. Excluding accretion income in both periods, the average loan yield increased 12 basis points from the prior year period.
The $4.3 million decrease in total interest expense was primarily due to a $4.2 million decrease in interest expense for IRA and time certificates. This decrease was primarily due to a $134.3 million decrease in average IRA and time certificates and to an 87 basis point decrease in the average rate paid for these certificates. This decrease reflects the strategic runoff of higher-cost certificates and IRA balances as part of LCNB's funding optimization strategy.
Provision and Allowance For Credit Losses
LCNB continuously reviews the loan portfolio for credit risk through the use of its lending and loan review functions. Independent loan reviews analyze specific loans, providing validation that credit risks are appropriately identified, graded, and reported to the Loan Committee, Board of Directors, and the Audit Committee. New credits meeting specific criteria are analyzed prior to origination and are reviewed by the Loan Committee and the Board of Directors.
The total provision for credit losses is determined based upon management's evaluation as to the amount needed to maintain the allowance for credit losses at a level considered appropriate in relation to the risk of losses inherent in the portfolio. For analysis purposes, the loan portfolio is separated into pools of similar loans. These pools include commercial and industrial loans, owner occupied commercial real estate loans, non-owner occupied commercial real estate loans, real estate loans secured by farms, real estate loans secured by multi-family dwellings, residential real estate loans secured by senior liens on 1-4 family dwellings, residential real estate loans secured by junior liens on 1-4 family dwellings, home equity line of credit loans, consumer loans, loans for agricultural purposes not secured by real estate, construction loans secured by 1-4 family dwellings, construction loans secured by other real estate, and several smaller classifications. Within each pool of loans, LCNB examines a variety of factors to determine the adequacy of the allowance for credit losses, including historic charge-off percentages, overall pool quality, a review of specific problem loans, current economic trends and conditions that may affect borrowers' ability to pay, and the nature, volume, and consistency of the loan pool. Calculating an appropriate level for the allowance and provision for credit losses involves a high degree of management judgment and is, by its nature, imprecise. Revisions may be necessary as more information becomes available or if market conditions change.
LCNB recorded a provision for credit losses of $276 thousand and $2.6 million for the three and six months ended June 30, 2026, compared to $18 thousand and $215 thousand for the same respective periods in 2025. The provision for the three-month period in 2026 included a provision for credit losses on loans of $233 thousand and a provision for off-balance-sheet credit exposures of $43 thousand. The provision for the six-month period in 2026 included a provision for credit losses on loans of $2.6 million and a recovery on off-balance-sheet credit exposures of $16 thousand. The provision for the three-month period in 2025 period included a provision for credit losses on loans of $63 thousand and a recovery on off-balance-sheet credit exposures of $45 thousand and the provision for the six-month period in 2025 included a provision for credit losses on loans of $226 thousand and a recovery on off-balance-sheet credit exposures of $11 thousand. The provision expense for the six month period in 2026 was primarily driven by credit deterioration identified in four commercial credits during the first quarter of 2026. Specifically, LCNB recorded charge-offs related to two participated logistics-sector loans and established specific reserves on two additional commercial and industrial loans in other industries. While certain borrower-specific challenges affecting the reserved commercial and industrial credits were influenced by global trade uncertainty and geopolitical conditions, management believes those impacts were isolated to the affected borrowers and are not indicative of broader deterioration within the commercial and industrial portfolio. Although management continues to monitor economic, geopolitical and industry-specific developments, current portfolio performance metrics, risk rating trends and other credit quality indicators do not support the need for additional segment-level reserve adjustments beyond those already reflected in the allowance for credit losses. The loan portfolio's overall asset quality remains strong, with nonperforming loans to total loans of 0.34% at June 30, 2026, compared to 0.28% at June 30, 2025.
Net recoveries for the three months ended June 30, 2026 totaled $1 thousand and net charge-offs for the six months ended June 30, 2026 totaled $2.7 million, compared to net charge-offs of $79 thousand and $118 thousand for the same respective periods in 2025. Net charge-offs during the six months ended June 30, 2026 primarily reflected the resolution of two unrelated participated loans within the logistics sector. Loans to one borrower, which carried a specific reserve of approximately $1.4 million at December 31, 2025, were charged off during the first quarter with no additional impact to earnings. In addition, LCNB recognized an approximately $1.3 million charge-off during the first quarter of 2026 related to a separate logistics-sector borrower after significant adverse developments arose subsequent to year-end, including the withdrawal of the borrower's sponsor from restructuring discussions and the acceptance by the lending group of a discounted debt-repurchase proposal. The specific reserves discussed above relate to two separate commercial and industrial credits that remained outstanding at June 30, 2026.
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (continued)
Non-Interest Income
A comparison of non-interest income for the three and six months ended June 30, 2026 and June 30, 2025 is as follows (in thousands):
| Three Months Ended |
Six Months Ended |
|||||||||||||||||||||||
| June 30, |
June 30, |
|||||||||||||||||||||||
| 2026 |
2025 |
Difference |
2026 |
2025 |
Difference |
|||||||||||||||||||
| Fiduciary income |
$ | 2,681 | 2,262 | 419 | 5,220 | 4,426 | 794 | |||||||||||||||||
| Service charges and fees on deposit accounts |
1,727 | 1,884 | (157 | ) | 3,212 | 3,650 | (438 | ) | ||||||||||||||||
| Bank-owned life insurance income |
366 | 353 | 13 | 725 | 699 | 26 | ||||||||||||||||||
| Net gains from sales of loans |
420 | 615 | (195 | ) | 620 | 1,456 | (836 | ) | ||||||||||||||||
| Other operating income |
159 | 134 | 25 | 269 | 239 | 30 | ||||||||||||||||||
| Total non-interest income |
$ | 5,353 | 5,248 | 105 | 10,046 | 10,470 | (424 | ) | ||||||||||||||||
Reasons for changes include:
| • |
Fiduciary income increased primarily due to increases in the fair values of trust and brokerage assets managed, on which fees are based. The increases in fair value were due to the opening of new Wealth Management customer accounts and to an increase in the market values of managed assets. |
|
| • |
Service charges and fees on deposit accounts decreased primarily due to decreased fee income received on the ICS product, partially offset by an increase in overdraft fees. |
|
| • |
Net gains from sales of loans decreased due to a strategic decision to retain a higher percentage of loan originations—particularly 1–4 family, first‑lien residential loans—on the balance sheet rather than selling them into the secondary market. Overall loan origination volumes were largely consistent between periods, with 1–4 family, first‑lien residential loan originations totaling $74.2 million during the first six months of 2026, compared to $73.2 million during the first six months of 2025. Loans sold during the six-month period of 2026 totaled $31.4 million, compared to $57.5 million during the same period in 2025. |
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (continued)
Non-Interest Expense
A comparison of non-interest expense for the three and six months ended June 30, 2026 and June 30, 2025 is as follows (in thousands):
| Three Months Ended |
Six Months Ended |
|||||||||||||||||||||||
| June 30, |
June 30, |
|||||||||||||||||||||||
| 2026 |
2025 |
Difference |
2026 |
2025 |
Difference |
|||||||||||||||||||
| Salaries and employee benefits |
$ | 8,959 | 8,872 | 87 | 18,426 | 18,044 | 382 | |||||||||||||||||
| Equipment expenses |
338 | 371 | (33 | ) | 730 | 753 | (23 | ) | ||||||||||||||||
| Occupancy expense, net |
993 | 1,022 | (29 | ) | 2,014 | 2,032 | (18 | ) | ||||||||||||||||
| State financial institutions tax |
447 | 449 | (2 | ) | 894 | 902 | (8 | ) | ||||||||||||||||
| Marketing |
315 | 281 | 34 | 609 | 596 | 13 | ||||||||||||||||||
| Amortization of intangibles |
228 | 301 | (73 | ) | 453 | 598 | (145 | ) | ||||||||||||||||
| FDIC insurance premiums, net |
327 | 380 | (53 | ) | 602 | 790 | (188 | ) | ||||||||||||||||
| Computer maintenance and supplies |
434 | 379 | 55 | 839 | 759 | 80 | ||||||||||||||||||
| Contracted services |
1,058 | 859 | 199 | 2,037 | 1,729 | 308 | ||||||||||||||||||
| Merger-related expenses |
— | 140 | (140 | ) | — | 140 | (140 | ) | ||||||||||||||||
| Other non-interest expense |
2,576 | 2,513 | 63 | 4,951 | 5,033 | (82 | ) | |||||||||||||||||
| Total non-interest expense |
$ | 15,675 | 15,567 | 108 | 31,555 | 31,376 | 179 | |||||||||||||||||
Reasons for changes include:
| • |
Salaries and employee benefits increased due to overall wage and benefit increases, an increased number of employees, and an increase in bonus expense accruals, partially offset by decreases in expenses for LCNB's defined benefit retirement and health insurance plans. |
|
| • | Amortization of intangibles decreased because the core deposit intangible related to Columbus First Bancorp, Inc. amortized in full during the third quarter of 2025. | |
| • |
FDIC insurance premiums decreased because of a decreased assessment base reflecting a decrease in total assets and to a reduction in the assessment rate charged. |
|
| • | Contracted services increased due to increased costs for cloud software and other data services and increased costs for LCNB's overdraft protection product. | |
| • |
Merger-related expenses during the three and six months ended June 30, 2025 reflect costs incurred in connection with the acquisitions of EFBI and CNNB. |
Income Taxes
LCNB's effective tax rate for the three and six months ended June 30, 2026 was 18.5% and 17.7%, respectively, compared to 17.8% and 17.2% for the same respective periods in 2025. The difference between the statutory rate of 21% and the effective tax rates is primarily due to tax-exempt interest income from municipal securities, tax-exempt earnings from bank-owned life insurance, tax-exempt earnings from LCNB Risk Management, Inc., and tax credits and losses related to investments in affordable housing tax credit limited partnerships.
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (continued)
Financial Condition
A comparison of balance sheet line items at June 30, 2026 and December 31, 2025 is as follows (dollars in thousands):
| June 30, 2026 |
December 31, 2025 |
Difference $ |
Difference % |
|||||||||||||
| ASSETS: |
||||||||||||||||
| Total cash and cash equivalents |
$ | 24,855 | 21,614 | 3,241 | 14.99 | % | ||||||||||
| Interest-bearing time deposits |
3,450 | 2,710 | 740 | 27.31 | % | |||||||||||
| Investment securities: |
||||||||||||||||
| Equity securities with a readily determinable fair value, at fair value |
1,452 | 1,433 | 19 | 1.33 | % | |||||||||||
| Equity securities without a readily determinable fair value, at cost |
3,666 | 3,666 | — | 0.00 | % | |||||||||||
| Debt securities, available-for-sale, at fair value |
215,769 | 232,271 | (16,502 | ) | (7.10 | )% | ||||||||||
| Debt securities, held-to-maturity, net, at cost |
15,799 | 16,080 | (281 | ) | (1.75 | )% | ||||||||||
| Federal Reserve Bank stock, at cost |
6,405 | 6,405 | — | 0.00 | % | |||||||||||
| Federal Home Loan Bank stock, at cost |
20,710 | 20,710 | — | 0.00 | % | |||||||||||
| Loans held-for-sale |
3,508 | 1,718 | 1,790 | 104.19 | % | |||||||||||
| Loans, net |
1,685,963 | 1,691,827 | (5,864 | ) | (0.35 | )% | ||||||||||
| Premises and equipment, net |
39,781 | 39,196 | 585 | 1.49 | % | |||||||||||
| Operating lease right-of-use assets |
6,239 | 6,475 | (236 | ) | (3.64 | )% | ||||||||||
| Goodwill |
90,310 | 90,310 | — | 0.00 | % | |||||||||||
| Core deposit and other intangibles, net |
8,499 | 9,271 | (772 | ) | (8.33 | )% | ||||||||||
| Bank-owned life insurance |
56,149 | 55,424 | 725 | 1.31 | % | |||||||||||
| Interest receivable |
7,765 | 7,968 | (203 | ) | (2.55 | )% | ||||||||||
| Other assets, net |
33,395 | 33,691 | (296 | ) | (0.88 | )% | ||||||||||
| TOTAL ASSETS |
$ | 2,223,715 | 2,240,769 | (17,054 | ) | (0.76 | )% | |||||||||
| LIABILITIES: |
||||||||||||||||
| Deposits: |
||||||||||||||||
| Noninterest-bearing |
$ | 478,568 | 466,094 | 12,474 | 2.68 | % | ||||||||||
| Interest-bearing |
1,340,618 | 1,374,261 | (33,643 | ) | (2.45 | )% | ||||||||||
| Total deposits |
1,819,186 | 1,840,355 | (21,169 | ) | (1.15 | )% | ||||||||||
| Long-term debt |
103,836 | 104,428 | (592 | ) | (0.57 | )% | ||||||||||
| Operating lease liabilities |
6,641 | 6,877 | (236 | ) | (3.43 | )% | ||||||||||
| Accrued interest and other liabilities |
13,435 | 15,180 | (1,745 | ) | (11.50 | )% | ||||||||||
| TOTAL LIABILITIES |
$ | 1,943,098 | 1,966,840 | (23,742 | ) | (1.21 | )% | |||||||||
| SHAREHOLDERS' EQUITY: |
||||||||||||||||
| Common shares |
$ | 188,868 | 188,212 | 656 | 0.35 | % | ||||||||||
| Retained earnings |
157,609 | 151,938 | 5,671 | 3.73 | % | |||||||||||
| Treasury shares, at cost |
(56,087 | ) | (56,071 | ) | (16 | ) | 0.03 | % | ||||||||
| Accumulated other comprehensive loss, net of taxes |
(9,773 | ) | (10,150 | ) | 377 | (3.71 | )% | |||||||||
| TOTAL SHAREHOLDERS' EQUITY |
$ | 280,617 | 273,929 | 6,688 | 2.44 | % | ||||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ | 2,223,715 | 2,240,769 | (17,054 | ) | (0.76 | )% | |||||||||
Reasons for changes include:
| • | Debt securities, available-for-sale, decreased due to maturities, calls, and paydowns, partially offset by new securities purchased during the period and to a decrease in unrealized losses. | |
| • |
Debt securities, held-to-maturity, decreased due to calls of municipal securities. |
|
| • | Despite record loan originations during the period, loans, net, decreased as elevated borrower payoffs and paydowns more than offset new loan production. | |
| • |
Core deposit and other intangibles, net decreased due to amortization of core deposit and mortgage servicing rights intangibles. | |
| • | Accrued interest and other liabilities decreased due to decreased accrued bonuses (bonuses were paid in February 2026), a decrease in low income housing tax credit payables due to payments for various projects, net decreases in various other payable accounts, and smaller decreases in a number of other accounts. |
|
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (continued)
LCNB's loan portfolio represents its largest asset category and is its most significant source of interest income. Loan classifications have been identified as Commercial & Industrial, Commercial Real Estate, Residential Real Estate, Consumer, Agricultural, and Other. Commercial real estate is the largest classification in LCNB's loan portfolio, comprising about 64.2% of total loans at June 30, 2026.
Loans secured by commercial real estate consist of owner-occupied, non-owner-occupied, farmland, multi-family, and construction loans. A commercial real estate, owner-occupied loan finances the purchase, construction, or refinance of a building or other property for which the repayment of principal is dependent upon cash flows from ongoing operations conducted by the party, or an affiliate of the party, who owns the property. A commercial real estate, non-owner occupied loan finances the purchase, construction or refinance of a building or other property for which the repayment of principal is dependent upon rental income associated with the property or the subsequent sale of the property. The values of these loans are primarily impacted by the level of interest rates associated with the debt and to local economic conditions, which dictate occupancy rates and the amount of rent charged. The increase in debt service due to higher interest rates may not be able to be passed on to tenants. As part of the origination process, loan interest rates and occupancy rates are stressed to determine the impact on the borrower’s ability to maintain adequate debt service under different economic conditions. Further, LCNB monitors the concentration in any one industry and has established limits relative to the total of the Bank's Tier 1 and Tier 2 capital for each category of loan. Credit quality trends are monitored by industry to determine if a change in the risk exposure to a certain industry may warrant a change in underwriting standards.
The following table provides a breakdown of amortized cost of commercial real estate loans by property-type classification as of June 30, 2026, excluding loans which are junior in lien or covered by collateral secured with varying classes of assets (dollars in thousands):
| Amount |
% of Total |
|||||||
| Multi-family |
$ | 255,956 | 25 | % | ||||
| Retail |
162,667 | 16 | % | |||||
| Office |
119,487 | 12 | % | |||||
| Hotel/Motel |
95,934 | 9 | % | |||||
| Mixed Use |
79,441 | 8 | % | |||||
| Other |
66,683 | 6 | % | |||||
| Self storage |
54,792 | 5 | % | |||||
| Warehouse (one tenant) |
42,057 | 4 | % | |||||
| Farmland |
35,295 | 3 | % | |||||
| Warehouse (more than one tenant) |
31,254 | 3 | % | |||||
| Light Industrial |
30,884 | 3 | % | |||||
| Manufacturing |
25,427 | 2 | % | |||||
| Healthcare Facilities |
17,422 | 2 | % | |||||
| Dental |
10,966 | 1 | % | |||||
| Total |
$ | 1,028,265 | 100 | % | ||||
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (continued)
Most of LCNB's commercial real estate loans are made within its general market area of Southwest and Central Ohio and Northern Kentucky. The following table provides a breakdown of amortized cost of commercial real estate loans by real estate collateral location as of June 30, 2026, excluding loans which are junior in lien or covered by collateral secured with varying classes of assets (dollars in thousands):
| Amount |
% of Total |
|||||||
| Franklin County, Ohio |
$ | 261,842 | 25 | % | ||||
| Hamilton County, Ohio |
175,957 | 17 | % | |||||
| Butler County, Ohio |
101,198 | 10 | % | |||||
| Montgomery County, Ohio |
90,395 | 9 | % | |||||
| Warren County, Ohio |
87,523 | 9 | % | |||||
| Delaware County, Ohio |
59,950 | 6 | % | |||||
| Boone County, Kentucky |
51,730 | 5 | % | |||||
| Greene County, Ohio |
38,006 | 4 | % | |||||
| Other counties, Ohio |
36,730 | 4 | % | |||||
| Clermont County, Ohio |
27,385 | 3 | % | |||||
| Preble County, Ohio |
18,369 | 2 | % | |||||
| Licking County, Ohio |
17,882 | 2 | % | |||||
| Kenton County, Kentucky |
15,336 | 1 | % | |||||
| Other counties, Kentucky |
11,457 | 1 | % | |||||
| Fayette County, Ohio |
10,674 | 1 | % | |||||
| Ross County, Ohio |
8,449 | 1 | % | |||||
| Fairfield County, Ohio |
8,188 | 1 | % | |||||
| Other counties, Indiana |
7,194 | 1 | % | |||||
| Total |
$ | 1,028,265 | 100 | % | ||||
Regulatory Capital
The Bank must meet certain minimum capital requirements set by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a material effect on the Company's and the Bank's financial statements. LCNB’s and the Bank’s capital amounts and classification are also subject to qualitative judgments by regulators about components, risk weightings, and other factors.
In addition to the minimum capital requirements, a financial institution needs to maintain a Capital Conservation Buffer composed of Common Equity Tier 1 Capital of at least 2.5% above its minimum risk-weighted capital requirements to avoid limitations on its ability to make capital distributions, including dividend payments to shareholders and certain discretionary bonus payments to executive officers. A financial institution with a buffer below 2.5% is subject to increasingly stringent limitations on capital distributions as the buffer approaches zero.
For various regulatory purposes, financial institutions are classified into categories based upon capital adequacy:
| Minimum |
||||||||||||
| Requirement |
To Be |
|||||||||||
| with Capital |
Considered |
|||||||||||
| Minimum |
Conservation |
Well- |
||||||||||
| Requirement |
Buffer |
Capitalized |
||||||||||
| Ratio of Common Equity Tier 1 Capital to risk-weighted assets |
4.5 | % | 7.0 | % | 6.5 | % | ||||||
| Ratio of Tier 1 Capital to risk-weighted assets |
6.0 | % | 8.5 | % | 8.0 | % | ||||||
| Ratio of Total Capital (Tier 1 Capital plus Tier 2 Capital) to risk-weighted assets |
8.0 | % | 10.5 | % | 10.0 | % | ||||||
| Leverage Ratio (Tier 1 Capital to adjusted quarterly average total assets) |
4.0 | % | N/A | 5.0 | % | |||||||
As of the most recent notification from their regulators, the Bank and LCNB were categorized as "well-capitalized" under the regulatory framework for prompt corrective action. Management believes that no conditions or events have occurred since the last notification that would change the Bank's or LCNB's category.
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (continued)
A summary of the Bank's regulatory capital and capital ratios follows (dollars in thousands):
| June 30, 2026 |
December 31, 2025 |
|||||||
| Regulatory Capital: |
||||||||
| Shareholders' equity |
$ | 285,571 | 278,356 | |||||
| Goodwill and other intangibles |
(94,865 | ) | (97,502 | ) | ||||
| Accumulated other comprehensive loss, net |
9,773 | 10,151 | ||||||
| Tier 1 risk-based capital |
200,479 | 191,005 | ||||||
| Eligible allowance for credit losses |
13,502 | 13,613 | ||||||
| Total risk-based capital |
$ | 213,981 | 204,618 | |||||
| Capital ratios: |
||||||||
| Common Equity Tier 1 Capital to risk-weighted assets |
11.62 | % | 11.02 | % | ||||
| Tier 1 Capital to risk-weighted assets |
11.62 | % | 11.02 | % | ||||
| Total Capital to risk-weighted assets |
12.40 | % | 11.81 | % | ||||
| Leverage |
9.30 | % | 8.94 | % | ||||
Qualifications for community banking organizations to use a simplified measure of capital adequacy approach include having a Tier 1 leverage ratio of greater than 9%, less than $10 billion in total consolidated assets, and limited amounts of off-balance-sheet exposures and trading assets and liabilities. A qualifying community banking organization that opts into the Community Bank Leverage Ratio framework and meets all requirements under the framework will be considered to have met the well-capitalized ratio requirements under the Prompt Corrective Action regulations and will not be required to report or calculate risk-based capital. LCNB qualified to use the simplified measure for the June 30, 2026 regulatory capital calculations, but opted not to use this approach. LCNB did not qualify to use the simplified measure for the December 31, 2025 regulatory capital calculations.
Liquidity
Effective liquidity management ensures that cash is available to meet the cash flow needs of borrowers and depositors, pay dividends to shareholders, and meet LCNB's operating cash needs. Primary funding sources include customer deposits with the Bank, short-term and long-term borrowings from the FHLB, line of credit arrangements totaling $115.0 million with three correspondent banks, and interest and repayments received from LCNB's loan and investment portfolios. In addition, LCNB has approximately $37 million in off-balance sheet ICS immediately available for liquidity.
Total remaining borrowing capacity with the FHLB at June 30, 2026 was approximately $159.1 million. Additional borrowings of approximately $115.0 million were available through line of credit arrangements with correspondent banks.
Management closely monitors the level of liquid assets available to meet ongoing funding needs. It is management's intent to maintain adequate liquidity so that sufficient funds are readily available at a reasonable cost. LCNB experienced no liquidity or operational problems as a result of current liquidity levels. Management believes LCNB has the ability to generate and obtain adequate amounts of liquidity to meet its requirements in the short and long-term.
Commitments to extend credit at June 30, 2026 totaled $305.4 million and are more fully described in Note 10 - Commitments and Contingent Liabilities to LCNB's condensed consolidated financial statements. Since many commitments to extend credit may expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements.
Item 3. Quantitative and Qualitative Disclosures about Market Risk
Market risk for LCNB is primarily due to interest rate risk. LCNB attempts to mitigate this risk through asset/liability management strategies designed to decrease the vulnerability of its earnings to material and prolonged changes in interest rates. LCNB does not use derivatives such as interest rate swaps, caps, or floors to hedge this risk. LCNB has not entered into any market risk instruments for trading purposes.
The Bank's Asset and Liability Management Committee primarily uses a combination of Interest Rate Sensitivity Analysis ("IRSA") and Economic Value of Equity ("EVE") analysis for measuring and managing interest rate risk. IRSA is used to estimate the effect on net interest income ("NII") during a one-year period of instantaneous and sustained movements in interest rates, also called interest rate shocks, of 100, 200, and 300 basis points. The annual base projection uses a current interest rate scenario. As shown below, the June 30, 2026 IRSA indicates that either an increase or a decrease in interest rates would have a positive effect on NII. The changes in NII for all rate shock scenarios are within LCNB's acceptable ranges.
| $ Change in |
% Change in |
|||||||||||||||
| Rate Shock Scenario in Basis Points |
Amount |
NII |
NII |
Limits |
||||||||||||
| (Dollars in thousands) |
||||||||||||||||
| Up 300 |
$ | 81,612 | 3,017 | 3.84 | % | 15 | % | |||||||||
| Up 200 |
81,059 | 2,464 | 3.14 | % | 10 | % | ||||||||||
| Up 100 |
80,506 | 1,911 | 2.43 | % | 5 | % | ||||||||||
| Base |
78,595 | — | — | % | 0 | % | ||||||||||
| Down 100 |
79,048 | 453 | 0.58 | % | 5 | % | ||||||||||
| Down 200 |
78,689 | 94 | 0.12 | % | 10 | % | ||||||||||
| Down 300 |
78,813 | 218 | 0.28 | % | 15 | % | ||||||||||
The IRSA shows the effect on NII during a one-year period only. A longer-range model is the EVE analysis, which shows, accounting for the same rate shocks, the estimated present value of future cash inflows from interest-earning assets less the present value of future cash outflows for interest-bearing liabilities for the same rate shocks. As shown below, the June 30, 2026 EVE analysis indicates that an increase in interest rates will have a negative effect on the EVE and a decrease in interest rates will have a positive effect. The changes in EVE for all rate shock scenarios are within LCNB's acceptable ranges.
| $ Change in |
% Change in |
|||||||||||||||
| Rate Shock Scenario in Basis Points |
Amount |
EVE |
EVE |
Limits |
||||||||||||
| (Dollars in thousands) |
||||||||||||||||
| Up 300 |
$ | 284,387 | (73,838 | ) | (20.61 | )% | 25 | % | ||||||||
| Up 200 |
310,615 | (47,610 | ) | (13.29 | )% | 20 | % | |||||||||
| Up 100 |
337,430 | (20,795 | ) | (5.81 | )% | 15 | % | |||||||||
| Base |
358,225 | — | — | % | — | % | ||||||||||
| Down 100 |
392,885 | 34,660 | 9.68 | % | 15 | % | ||||||||||
| Down 200 |
434,183 | 75,958 | 21.20 | % | 20 | % | ||||||||||
| Down 300 |
445,808 | 87,583 | 24.45 | % | 25 | % | ||||||||||
The IRSA and EVE simulations discussed above are not projections of future income or equity and should not be relied on as being indicative of future operating results. Assumptions used, including the nature and timing of interest rate levels, yield curve conditions, prepayments on loans and securities, deposit decay rates, pricing decisions on loans and deposits, and reinvestment or replacement of asset and liability cash flows, are inherently uncertain and, as a result, the models cannot precisely measure future NII or equity. Furthermore, the models do not reflect actions that borrowers, depositors, and management may take in response to changing economic conditions and interest rate levels.
Item 4. Controls and Procedures
a) Disclosure controls and procedures. The Chief Executive Officer and the Chief Financial Officer have carried out an evaluation of the effectiveness of LCNB's disclosure controls and procedures that ensure that information relating to LCNB required to be disclosed by LCNB in the reports that it files or submits under the Securities and Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms and that such information is accumulated and communicated to LCNB's management, including its principal executive officer and principal financial officer, as appropriate, in order to allow timely decisions to be made regarding required disclosures. Based upon this evaluation, these officers have concluded that, as of June 30, 2026, LCNB's disclosure controls and procedures were effective.
b) Changes in internal control over financial reporting. During the period covered by this report, there were no changes in LCNB's internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, LCNB's internal control over financial reporting.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Except for routine litigation incidental to its business, LCNB is not a party to any material pending legal proceedings and none of its property is the subject of any material proceedings.
Item 1A. Risk Factors
Readers should carefully consider the risk factors previously disclosed in Part I, Item 1A. Risk Factors in LCNB's Form 10-K for the year ended December 31, 2025.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
During the period covered by this report, LCNB did not sell any of its securities that were not registered under the Securities Act.
Under LCNB's Stock Repurchase Plan Agreement (the "Plan"), LCNB may purchase common shares through various means such as open market transactions, including block purchases and privately negotiated transactions. The number of shares repurchased and the timing, manner, price and amount of any repurchases are determined at LCNB's discretion. Factors include, but are not limited to, share price, trading volume, and general market conditions, along with LCNB’s general business conditions. The Plan may be suspended or discontinued at any time and does not obligate LCNB to acquire any specific number of its common shares.
As part of the Plan, LCNB entered into a trading plan adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. The 10b5-1 trading plan permits common shares to be repurchased at times that LCNB might otherwise be precluded from doing so under insider trading laws or self-imposed trading restrictions. The 10b5-1 trading plan is administered by an independent broker and is subject to price, market volume, and timing restrictions.
On February 27, 2023, LCNB's Board of Directors authorized the Plan. Under the terms of the Plan, LCNB is authorized to repurchase up to 500,000 of its outstanding common shares. The Plan replaced and superseded LCNB’s prior Issuer Stock Repurchase Plan Agreement, which was adopted on May 27, 2022.
There were no repurchases made under the Plan during the three months ended June 30, 2026, and there are still 310,922 shares that may be purchased pursuant to the Plan.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Mine Safety Disclosures
Not applicable.
Item 5. Other Information
During the three months ended June 30, 2026, none of our directors or officers informed us of the adoption, modification, or termination of a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as those terms are defined in Regulation S-K, Item 408.
Item 6. Exhibits
| Exhibit No. |
Exhibit Description |
| 3.1 |
Amended and Restated Articles of Incorporation of LCNB Corp., as amended. (This document represents the Amended and Restated Articles of Incorporation of LCNB Corp. in compiled form incorporating all amendments. The compiled document has not been filed with the Ohio Secretary of State.) - incorporated by reference to the Registrant's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2018, Exhibit 3.1. |
| 3.2 | Code of Regulations of LCNB Corp. – incorporated by reference to the Registrant's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2005, Exhibit 3(ii) |
| 31.1 |
Certification of Chief Executive Officer under Section 302 of the Sarbanes-Oxley Act of 2002. |
| 31.2 |
Certification of Chief Financial Officer under Section 302 of the Sarbanes-Oxley Act of 2002. |
| 32 |
Certification of Chief Executive Officer and Chief Financial Officer under Section 906 of the Sarbanes-Oxley Act of 2002. |
| 101 |
The following financial information from LCNB Corp.'s Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 is formatted in Extensible Business Reporting Language: (i) the Consolidated Condensed Balance Sheets, (ii) the Consolidated Condensed Statements of Income, (iii) the Consolidated Condensed Statements of Comprehensive Income, (iv) the Consolidated Condensed Statements of Shareholders' Equity, (v) the Consolidated Condensed Statements of Cash Flows, and (vi) the Notes to Consolidated Condensed Financial Statements. |
| 104 |
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| LCNB Corp. |
||
| August 5, 2026 |
/s/ Eric J. Meilstrup |
|
| Eric J. Meilstrup |
||
| Chief Executive Officer |
||
| August 5, 2026 |
/s/ Andrew M. Wallace |
|
| Andrew M. Wallace, CPA |
||
| Executive Vice President and Chief Financial Officer |
||