LCNB Corporation

07/16/2026 | Press release | Distributed by Public on 07/16/2026 05:05

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

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

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

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

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

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

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

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

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

Income Statement

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

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

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

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

Capital Allocation

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

Balance Sheet

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

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

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

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

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

Assets Under Management

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

Asset Quality

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

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

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

About LCNB Corp.

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

Learn more about LCNB Corp. at https://www.lcnb.com

Forward-Looking Statements

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

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

1.

the success, impact, and timing of the implementation of LCNB's business strategies;

2.

LCNB's ability to integrate future acquisitions may be unsuccessful or may be more difficult, time-consuming, or costly than expected;

3.

LCNB may incur increased loan charge-offs in the future and the allowance for credit losses may be inadequate;

4.

LCNB may face competitive loss of customers to both bank and nonbank financial institutions;

5.

changes in the interest rate environment, either by interest rate increases or decreases, may have results on LCNB's operations materially different from those anticipated by LCNB's market risk management functions;

6.

changes in general economic conditions, increased competition could adversely affect LCNB's operating results;

7.

changes in or instability regarding regulations and government policies affecting bank holding companies and their subsidiaries, including changes in monetary policies, could negatively impact LCNB's operating results;

8.

LCNB may experience difficulties growing loan and deposit balances;

9.

United States trade relations with foreign countries could negatively impact the financial condition of LCNB's customers, which could adversely affect LCNB's operating results and financial condition;

10.

global and/or geopolitical relations and/or conflicts could create financial market uncertainty and have negative impacts on commodities, currency, and stability, which could adversely affect LCNB's operating results and financial condition;

11.

difficulties with technology or data security breaches, including cyberattacks or widespread outages, could negatively affect LCNB's ability to conduct business and its relationships with customers, vendors, and others;

12.

adverse weather events and natural disasters and global and/or national epidemics could negatively affect LCNB's customers given its concentrated geographic scope, which could impact LCNB's operating results; and

13.

government intervention in the U.S. financial system, including the effects of legislative, tax, accounting, and regulatory actions and reforms, including, the Jumpstart Our Business Startups Act, the Consumer Financial Protection Bureau, the capital ratios of Basel III as adopted by the federal banking authorities, changes in deposit insurance premium levels, and any such future regulatory actions or reforms.

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

LCNB Corp. and Subsidiaries

Financial Highlights

(Dollars in thousands, except per share amounts)

(Unaudited)

Three Months Ended

Six Months Ended

6/30/2026

3/31/2026

12/31/2025

9/30/2025

6/30/2025

6/30/2026

6/30/2025

Condensed Income Statement

Interest income

$

26,332

25,430

25,187

26,305

25,939

51,762

51,255

Interest expense

6,541

6,583

6,931

8,179

8,398

13,124

17,415

Net interest income

19,791

18,847

18,256

18,126

17,541

38,638

33,840

Provision for credit losses

276

2,339

1,510

211

18

2,615

215

Net interest income after provision for credit losses

19,515

16,508

16,746

17,915

17,523

36,023

33,625

Non-interest income

5,353

4,693

5,601

5,704

5,248

10,046

10,470

Non-interest expense

15,675

15,880

15,388

15,145

15,567

31,555

31,376

Income before income taxes

9,193

5,321

6,959

8,474

7,204

14,514

12,719

Provision for income taxes

1,699

877

1,303

1,538

1,285

2,576

2,191

Net income

$

7,494

4,444

5,656

6,936

5,919

11,938

10,528

Supplemental Income Statement Information

Accretion income on acquired loans

$

1,290

659

816

904

1,174

1,949

1,866

Tax-equivalent net interest income

19,829

18,886

18,297

18,169

17,584

38,715

33,922

Pre-provision, pre-tax net income

9,469

7,660

8,469

8,685

7,222

17,129

12,934

Per Share Data

Dividends per share

$

0.22

0.22

0.22

0.22

0.22

0.44

0.44

Basic earnings per common share

$

0.53

0.31

0.40

0.49

0.41

0.84

0.74

Diluted earnings per common share

$

0.53

0.31

0.40

0.49

0.41

0.84

0.74

Book value per share

$

19.69

19.36

19.30

19.02

18.59

19.69

18.59

Tangible book value per share

$

12.90

12.55

12.45

12.15

11.69

12.90

11.69

Weighted average common shares outstanding:

Basic

14,157,834

14,125,191

14,106,778

14,097,414

14,085,764

14,141,601

14,070,417

Diluted

14,157,834

14,125,191

14,106,778

14,097,414

14,085,764

14,141,601

14,070,417

Shares outstanding at period end

14,254,091

14,245,849

14,193,577

14,186,204

14,175,241

14,254,091

14,175,241

Selected Financial Ratios

Return on average assets

1.34

%

0.80

%

1.01

%

1.21

%

1.04

%

1.07

%

0.93

%

Return on average equity

10.78

%

6.52

%

8.22

%

10.33

%

9.09

%

8.67

%

8.22

%

Return on average tangible common equity

16.51

%

10.06

%

12.78

%

16.29

%

14.54

%

13.33

%

13.26

%

Dividend payout ratio

41.51

%

70.97

%

55.00

%

44.90

%

53.66

%

52.38

%

59.46

%

Net interest margin (tax equivalent)

3.99

%

3.83

%

3.69

%

3.57

%

3.47

%

3.91

%

3.36

%

Efficiency ratio (tax equivalent)

62.25

%

67.35

%

64.39

%

63.44

%

68.18

%

64.71

%

70.68

%

Selected Balance Sheet Items

Cash and cash equivalents

$

24,855

29,181

21,614

35,865

49,778

Debt and equity securities

267,251

276,913

280,565

292,604

302,935

Loans:

Commercial and industrial

$

96,280

100,477

104,013

107,925

110,528

Commercial, secured by real estate

1,090,836

1,090,718

1,100,203

1,083,748

1,110,875

Residential real estate

482,518

476,863

469,574

454,918

459,473

Consumer

14,983

15,834

16,928

17,748

18,452

Agricultural

15,938

14,561

15,666

15,262

14,413

Other, including deposit overdrafts

174

273

210

267

171

Deferred net origination fees

(1,159

)

(1,052

)

(1,063

)

(840

)

(902

)

Loans, gross

1,699,569

1,697,674

1,705,531

1,679,028

1,713,010

Less allowance for credit losses

13,606

13,372

13,704

12,170

12,108

Loans, net

$

1,685,963

1,684,302

1,691,827

1,666,858

1,700,902

Loans held for sale

$

3,508

3,438

1,718

4,018

6,026

Three Months Ended

Six Months Ended

6/30/2026

3/31/2026

12/31/2025

9/30/2025

6/30/2025

6/30/2026

6/30/2025

Selected Balance Sheet Items, continued

Allowance for Credit Losses on Loans:

Allowance for credit losses, beginning of period

$

13,372

13,704

12,170

12,108

12,124

Provision for credit losses on loans

233

2,398

1,520

231

63

Losses charged off

(36

)

(2,766

)

(67

)

(193

)

(95

)

Recoveries

37

36

81

24

16

Allowance for credit losses, end of period

$

13,606

13,372

13,704

12,170

12,108

Total earning assets

$

1,976,036

1,986,777

1,993,785

1,983,606

2,034,540

Goodwill

90,310

90,310

90,310

90,310

90,310

Core deposit intangibles

6,478

6,705

6,931

7,161

7,408

Mortgage servicing rights

2,021

2,188

2,340

2,519

2,698

Other non-earning assets

148,871

151,856

147,403

160,769

172,844

Total non-earning assets

247,679

251,059

246,984

260,759

273,260

Total assets

2,223,715

2,237,836

2,240,769

2,244,365

2,307,800

Total deposits

1,819,186

1,838,793

1,840,355

1,849,082

1,919,372

Long-term debt

103,836

104,133

104,428

104,717

105,000

Total shareholders' equity

280,617

275,816

273,929

269,870

263,474

Equity to assets ratio

12.62

%

12.33

%

12.22

%

12.02

%

11.42

%

Loans to deposits ratio

93.42

%

92.33

%

92.67

%

90.80

%

89.25

%

Tangible common equity (TCE)

$

183,829

178,801

176,689

172,399

165,756

Tangible common assets (TCA)

2,126,927

2,140,821

2,143,529

2,146,894

2,210,082

TCE/TCA

8.64

%

8.35

%

8.24

%

8.03

%

7.50

%

Selected Average Balance Sheet Items

Cash and cash equivalents

$

28,893

35,116

29,395

38,466

34,256

31,978

35,063

Debt and equity securities

248,323

278,950

285,810

298,341

302,475

251,424

303,373

Loans, including loans held for sale

$

1,706,541

1,707,948

1,675,449

1,706,281

1,718,959

1,707,241

1,720,418

Less allowance for credit losses on loans

13,376

12,812

12,186

12,099

12,117

13,095

12,057

Net loans

$

1,693,165

1,695,136

1,663,263

1,694,182

1,706,842

1,694,145

1,708,361

Total earning assets

$

1,991,514

2,000,595

1,968,188

2,017,294

2,031,261

1,996,826

2,033,996

Goodwill

90,310

90,310

90,310

90,310

90,310

90,310

90,310

Core deposit intangibles

6,589

6,816

7,043

7,275

7,555

6,702

7,704

Mortgage servicing rights

2,189

2,340

2,520

2,699

2,908

2,264

3,003

Other non-earning assets

147,961

153,437

153,528

159,328

158,251

149,349

159,138

Total non-earning assets

247,049

252,903

253,401

259,612

259,024

248,625

260,155

Total assets

2,238,563

2,253,498

2,221,589

2,276,906

2,290,285

2,245,451

2,294,151

Total deposits

1,834,710

1,846,345

1,822,412

1,884,748

1,906,305

1,840,496

1,901,402

Short-term borrowings

-

4,795

-

52

63

2,384

67

Long-term debt

104,080

104,376

104,664

104,951

104,701

104,227

115,933

Total shareholders' equity

278,949

276,362

272,856

266,489

261,193

277,663

258,173

Equity to assets ratio

12.46

%

12.26

%

12.28

%

11.70

%

11.40

%

12.37

%

11.25

%

Loans to deposits ratio

93.00

%

92.50

%

91.94

%

90.53

%

90.17

%

92.75

%

90.48

%

Asset Quality

Net charge-offs (recoveries)

$

(1

)

2,730

(14

)

169

79

2,729

118

Other real estate owned

-

-

-

-

-

Non-accrual loans

$

5,751

3,227

1,794

1,793

4,500

Loans past due 90 days or more and still accruing

98

136

530

163

271

Total nonperforming loans

5,848

3,363

2,324

1,956

4,771

Net charge-offs to average loans

0.00

%

0.65

%

0.00

%

0.04

%

0.02

%

0.32

%

0.01

%

Allowance for credit losses on loans to total loans

0.80

%

0.79

%

0.80

%

0.72

%

0.71

%

Nonperforming loans to total loans

0.34

%

0.20

%

0.14

%

0.12

%

0.28

%

Nonperforming assets to total assets

0.26

%

0.15

%

0.10

%

0.09

%

0.21

%

Three Months Ended

Six Months Ended

6/30/2026

3/31/2026

12/31/2025

9/30/2025

6/30/2025

6/30/2026

6/30/2025

Assets Under Management

LCNB Corp. total assets

2,223,715

2,237,836

2,240,769

2,244,365

2,307,800

Trust and investments (fair value)

1,148,515

1,081,558

1,053,887

1,041,270

990,699

Mortgage loans serviced

308,073

325,133

333,518

341,548

348,003

Cash management

37,175

39,979

10,935

73,002

62,737

Investment services (fair value)

531,900

491,890

504,123

494,947

466,299

Total assets managed

$

4,249,378

4,176,396

4,143,232

4,195,132

4,175,538

Three Months Ended June 30,

Three Months Ended March 31,

2026

2025

2026

Average

Interest

Average

Average

Interest

Average

Average

Interest

Average

Outstanding

Earned/

Yield/

Outstanding

Earned/

Yield/

Outstanding

Earned/

Yield/

Balance

Paid

Rate

Balance

Paid

Rate

Balance

Paid

Rate

Loans(1)

$

1,706,541

24,345

5.72

%

1,718,959

23,838

5.56

%

1,707,948

23,433

5.56

%

Interest-bearing demand deposits

9,524

96

4.04

%

9,573

140

5.87

%

10,987

107

3.95

%

Interest-bearing time deposits

2,896

26

3.60

%

254

6

9.47

%

2,710

25

3.74

%

Federal Reserve Bank stock

6,405

98

6.14

%

6,405

98

6.14

%

6,405

94

5.95

%

Federal Home Loan Bank stock

20,710

383

7.42

%

20,710

447

8.66

%

20,710

392

7.68

%

Investment securities:

Equity securities

5,099

33

2.60

%

5,053

36

2.86

%

5,104

37

2.94

%

Debt securities, taxable

224,414

1,207

2.16

%

251,920

1,213

1.93

%

230,649

1,196

2.10

%

Debt securities, non-taxable(2)

15,925

182

4.58

%

18,387

204

4.45

%

16,082

185

4.67

%

Total earnings assets

1,991,514

26,370

5.31

%

2,031,261

25,982

5.13

%

2,000,595

25,469

5.16

%

Non-earning assets

260,436

271,147

265,726

Allowance for credit losses

(13,387

)

(12,123

)

(12,823

)

Total assets

$

2,238,563

2,290,285

2,253,498

Interest-bearing demand and money market deposits

$

648,548

2,197

1.36

%

603,066

2,374

1.58

%

682,183

2,465

1.47

%

Savings deposits

355,129

220

0.25

%

363,679

199

0.22

%

356,622

207

0.24

%

IRA and time certificates

351,311

2,803

3.20

%

466,065

4,546

3.91

%

343,061

2,609

3.08

%

Short-term borrowings

-

-

-

%

63

1

6.37

%

4,795

46

3.89

%

Long-term debt

104,080

1,321

5.09

%

104,701

1,278

4.90

%

104,376

1,256

4.88

%

Total interest-bearing liabilities

1,459,068

6,541

1.80

%

1,537,574

8,398

2.19

%

1,491,037

6,583

1.79

%

Demand deposits

479,722

473,495

464,479

Other liabilities

20,824

18,023

21,620

Equity

278,949

261,193

276,362

Total liabilities and equity

$

2,238,563

2,290,285

2,253,498

Net interest rate spread(3)

3.51

%

2.94

%

3.37

%

Net interest income and net interest margin on a taxable-equivalent basis(4)

19,829

3.99

%

17,584

3.47

%

18,886

3.83

%

Ratio of interest-earning assets to interest-bearing liabilities

136.49

%

132.11

%

134.17

%

(1)

Average outstanding balance includes non-accrual loans and loans held for sale

(2)

Income from tax-exempt securities is included in interest income on a taxable-equivalent basis. Interest income has been divided by a factor comprised of the complement of the incremental tax rate of 21%.

(3)

The net interest spread is the difference between the average rate on total interest-earning assets and interest-bearing liabilities.

(4)

The net interest margin is the taxable-equivalent net interest income divided by average interest-earning assets.

For the Six Months Ended June 30,

2026

2025

Average

Interest

Average

Average

Interest

Average

Outstanding

Earned/

Yield/

Outstanding

Earned/

Yield/

Balance

Paid

Rate

Balance

Paid

Rate

Loans(1)

$

1,707,241

47,778

5.64

%

1,720,418

47,019

5.51

%

Interest-bearing demand deposits

11,036

203

3.71

%

9,953

272

5.51

%

Interest-bearing time deposits

2,816

51

3.65

%

252

6

4.80

%

Federal Reserve Bank stock

6,405

192

6.05

%

6,405

192

6.05

%

Federal Home Loan Bank stock

20,710

775

7.55

%

20,710

915

8.91

%

Investment securities:

Equity securities

5,101

70

2.77

%

5,048

75

3.00

%

Debt securities, taxable

227,514

2,403

2.13

%

253,434

2,469

1.96

%

Debt securities, non-taxable(2)

16,003

367

4.62

%

17,776

389

4.41

%

Total earnings assets

1,996,826

51,839

5.24

%

2,033,996

51,337

5.09

%

Non-earning assets

261,731

272,217

Allowance for credit losses

(13,106

)

(12,062

)

Total assets

$

2,245,451

2,294,151

Interest-bearing demand and money market deposits

$

665,272

4,662

1.41

%

586,860

4,711

1.62

%

Savings deposits

355,871

426

0.24

%

364,771

394

0.22

%

IRA and time certificates

347,209

5,413

3.14

%

481,536

9,573

4.01

%

Short-term borrowings

2,384

46

3.89

%

67

2

6.02

%

Long-term debt

104,227

2,577

4.99

%

115,933

2,735

4.76

%

Total interest-bearing liabilities

1,474,963

13,124

1.79

%

1,549,167

17,415

2.27

%

Demand deposits

472,143

468,235

Other liabilities

20,682

18,576

Equity

277,663

258,173

Total liabilities and equity

$

2,245,451

2,294,151

Net interest rate spread(3)

3.44

%

2.82

%

Net interest income and net interest margin on a taxable-equivalent basis(4)

38,715

3.91

%

33,922

3.36

%

Ratio of interest-earning assets to interest-bearing liabilities

135.38

%

131.30

%

(1)

Average outstanding balance includes non-accrual loans and loans held for sale

(2)

Income from tax-exempt securities is included in interest income on a taxable-equivalent basis. Interest income has been divided by a factor comprised of the complement of the incremental tax rate of 21%.

(3)

The net interest spread is the difference between the average rate on total interest-earning assets and interest-bearing liabilities.

(4)

The net interest margin is the taxable-equivalent net interest income divided by average interest-earning assets.

LCNB CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

(Unaudited, dollars in thousands)

June 30, 2026

December 31,
2025

Unaudited

Audited

ASSETS:

Cash and due from banks

$

19,158

18,353

Interest-bearing demand deposits

5,697

3,261

Total cash and cash equivalents

24,855

21,614

Interest-bearing time deposits

3,450

2,710

Investment securities:

Equity securities with a readily determinable fair value, at fair value

1,452

1,433

Equity securities without a readily determinable fair value, at cost

3,666

3,666

Debt securities, available-for-sale, at fair value

215,769

232,271

Debt securities, held-to-maturity, at cost, net of allowance for credit losses of $11 at June 30, 2026 and December 31, 2025

15,799

16,080

Federal Reserve Bank stock, at cost

6,405

6,405

Federal Home Loan Bank stock, at cost

20,710

20,710

Loans held-for-sale

3,508

1,718

Loans, net of allowance for credit losses of $13,606 and $13,704 at June 30, 2026 and December 31, 2025, respectively

1,685,963

1,691,827

Premises and equipment, net

39,781

39,196

Operating lease right-of-use assets

6,239

6,475

Goodwill

90,310

90,310

Core deposit and other intangibles, net

8,499

9,271

Bank-owned life insurance

56,149

55,424

Interest receivable

7,765

7,968

Other assets, net

33,395

33,691

TOTAL ASSETS

$

2,223,715

2,240,769

LIABILITIES:

Deposits:

Noninterest-bearing

$

478,568

466,094

Interest-bearing

1,340,618

1,374,261

Total deposits

1,819,186

1,840,355

Long-term debt

103,836

104,428

Operating lease liabilities

6,641

6,877

Accrued interest and other liabilities

13,435

15,180

TOTAL LIABILITIES

1,943,098

1,966,840

COMMITMENTS AND CONTINGENT LIABILITIES

-

-

SHAREHOLDERS' EQUITY:

Preferred shares - no par value, authorized 1,000,000 shares, none outstanding

-

-

Common shares - no par value; authorized 19,000,000 shares; issued 17,470,548 and 17,409,085 shares at June 30, 2026 and December 31, 2025, respectively; outstanding 14,254,091 and 14,193,577 shares at June 30, 2026 and December 31, 2025, respectively

188,868

188,212

Retained earnings

157,609

151,938

Treasury shares at cost, 3,216,457 and 3,215,508 shares at June 30, 2026 and December 31, 2025, respectively

(56,087

)

(56,071

)

Accumulated other comprehensive loss, net of taxes

(9,773

)

(10,150

)

TOTAL SHAREHOLDERS' EQUITY

280,617

273,929

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

2,223,715

2,240,769

LCNB CORP. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

INTEREST INCOME:

Interest and fees on loans

$

24,345

23,838

47,778

47,019

Dividends on equity securities:

With a readily determinable fair value

12

11

23

21

Without a readily determinable fair value

20

25

46

54

Interest on debt securities:

Taxable

1,207

1,213

2,403

2,469

Non-taxable

144

161

290

307

Other investments

604

691

1,222

1,385

TOTAL INTEREST INCOME

26,332

25,939

51,762

51,255

INTEREST EXPENSE:

Interest on deposits

5,220

7,119

10,501

14,678

Interest on long-term debt

1,321

1,278

2,577

2,735

Interest on short-term borrowings

-

1

46

2

TOTAL INTEREST EXPENSE

6,541

8,398

13,124

17,415

NET INTEREST INCOME

19,791

17,541

38,638

33,840

PROVISION FOR CREDIT LOSSES

276

18

2,615

215

NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES

19,515

17,523

36,023

33,625

NON-INTEREST INCOME:

Fiduciary income

2,681

2,262

5,220

4,426

Service charges and fees on deposit accounts

1,727

1,884

3,212

3,650

Bank-owned life insurance income

366

353

725

699

Net gains from sales of loans

420

615

620

1,456

Net other operating income

159

134

269

239

TOTAL NON-INTEREST INCOME

5,353

5,248

10,046

10,470

NON-INTEREST EXPENSE:

Salaries and employee benefits

8,959

8,872

18,426

18,044

Occupancy expense, net

993

1,022

2,014

2,032

Equipment expenses

338

371

730

753

State financial institutions tax

447

449

894

902

Marketing

315

281

609

596

Amortization of intangibles

228

301

453

598

Computer maintenance and supplies

434

379

839

759

FDIC insurance premiums, net

327

380

602

790

Contracted services

1,058

859

2,037

1,729

Merger-related expenses

-

140

-

140

Other non-interest expense

2,576

2,513

4,951

5,033

TOTAL NON-INTEREST EXPENSE

15,675

15,567

31,555

31,376

INCOME BEFORE INCOME TAXES

9,193

7,204

14,514

12,719

PROVISION FOR INCOME TAXES

1,699

1,285

2,576

2,191

NET INCOME

$

7,494

5,919

11,938

10,528

Earnings per common share:

Basic

$

0.53

0.41

0.84

0.74

Diluted

0.53

0.41

0.84

0.74

Weighted average common shares outstanding:

Basic

14,157,834

14,085,764

14,141,601

14,070,417

Diluted

14,157,834

14,085,764

14,141,601

14,070,417

Company Contact:
Eric J. Meilstrup
Chief Executive Officer
LCNB National Bank
(513) 932-1414
[email protected]

Investor and Media Contact:
Andrew M. Berger
Managing Director
SM Berger & Company, Inc.
(216) 464-6400
[email protected]

Source: LCNB Corp.
LCNB Corporation published this content on July 16, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on July 16, 2026 at 11:06 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]