0001074902FALSE00010749022024-01-012024-03-31

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 23, 2024
LCNB CORP.
(Exact name of Registrant as specified in its Charter)
Ohio001-3529231-1626393
(State or other jurisdiction of incorporation)(Commission File No.)(IRS Employer Identification Number)

2 North Broadway, Lebanon, Ohio 45036
(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (513) 932-1414

N/A
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities Registered Pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, No Par ValueLCNBNASDAQ

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

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. ☐




Item 2.02 Results of Operations and Financial Condition.

On July 23, 2024, LCNB Corp. issued an earnings release announcing its financial results for the three and six months ended June 30, 2024. A copy of the earnings release (Exhibit 99.1) and unaudited financial highlights (Exhibit 99.2) are attached and are furnished under this Item 2.02.

Item 7.01 Regulation FD Disclosure.

On July 23, 2024, LCNB Corp. issued an earnings release announcing its financial results for the three and six months ended June 30, 2024. A copy of the earnings release (Exhibit 99.1) and unaudited financial highlights (Exhibit 99.2) are attached and are furnished under this Item 7.01.

Item 9.01 Financial Statements and Exhibits.

(d)    Exhibits.

Exhibit No.        Description


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.
Date: July 23, 2024
By: /s/ Robert C. Haines II              
Robert C. Haines II
Chief Financial Officer



Exhibit 99.1
Press Release
image_0a.jpg
Two North Broadway
Lebanon, Ohio 45036

Company Contact:
Eric J. Meilstrup
President and Chief Executive Officer
LCNB National Bank
(513) 932-1414
shareholderrelations@lcnb.com
Investor and Media Contact:
Andrew M. Berger
Managing Director
SM Berger & Company, Inc.
(216) 464-6400
andrew@smberger.com

LCNB CORP. REPORTS FINANCIAL RESULTS FOR
THE THREE AND SIX MONTHS ENDED JUNE 30, 2024

Second quarter results include the initial contribution of the April 12, 2024 Eagle Financial Bancorp, Inc. acquisition and the growing benefits of the November 1, 2023 Cincinnati Bancorp, Inc. acquisition

LCNB ended the quarter with record total assets, record LCNB Wealth Management assets, and record total assets managed of $4.21 billion

Non-interest income for the 2024 second quarter increased 11.9% year-over-year to $4.1 million, and up 3.8% from the first quarter

Net interest margin for the 2024 second quarter increased 14 basis points from the 2024 first quarter

Management continues to expect year-over-year earnings growth to reaccelerate in the fourth quarter of 2024

LEBANON, Ohio--LCNB Corp. ("LCNB") (NASDAQ: LCNB) today announced financial results for the three months and six months ended June 30, 2024.

Commenting on the financial results, LCNB President and Chief Executive Officer Eric Meilstrup said, “Our second quarter results demonstrate the initial contribution of the April 12, 2024 Eagle Financial Bancorp, Inc. (“EFBI” or “Eagle”) acquisition and the growing benefits of the November 1, 2023 Cincinnati Bancorp, Inc. (“Cincinnati Federal”) acquisition. As a result of these transformative transactions, LCNB's scale increased to $4.21 billion in total assets managed, becoming one of the largest independent community banks in Ohio. I am extremely proud of how our teams have come together to successfully integrate the Eagle and Cincinnati Federal acquisitions. During the 2024 second quarter, we completed the data and customer conversion of the Eagle transaction, and we are now on one system under the LCNB brand.”

Mr. Meilstrup continued, “We believe our financial results are beginning to reflect the benefits of our larger scale and the opportunities to provide additional financial services to customers across our Ohio and Kentucky markets, including expanded wealth management solutions, greater mortgage loan capabilities, and additional cash management offerings. As a result, we experienced year-over-year and sequential growth in non-interest income, and we saw a 14-basis point sequential increase in our tax equivalent net interest margin. In addition, I am encouraged by the significant improvement in adjusted net income, a non-GAAP financial measure that excludes certain nonrecurring items, over the past three months, as our 2024 second quarter adjusted net income increased by 56.8% to $4.1 million, or $0.29 per diluted share.”


“We believe we are well positioned for continued improvements in profitability as a result of the completion of our integration efforts, our excellent asset quality, and the initiatives we are pursuing to strengthen our balance sheet. I look forward to updating shareholders on the progress we are making, as we focus on providing leading financial services and expanding our product offerings to more customers throughout our Ohio and Kentucky communities,” concluded Mr. Meilstrup.

Income Statement
Net income for the 2024 second quarter was $0.9 million, compared to net income of $4.7 million for the same period last year. Earnings per basic and diluted share for the 2024 second quarter were $0.07, compared to $0.42 for the same period last year. Net income for the six-month period ended June 30, 2024 was $2.8 million, compared to $8.9 million for the same period last year. Earnings per basic and diluted share for the six-month period ended June 30, 2024 were $0.21, compared to $0.79 for the same period last year.

Adjusted net income for the 2024 second quarter was $4.1 million, or $0.29 per basic and diluted share, compared to $5.0 million, or $0.45 per basic and diluted share, for the same period last year. Adjusted net income for the first half ended June 30, 2024 was $6.7 million, or $0.49 per basic and diluted share, compared to $9.2 million, or $0.82 per basic and diluted share, in the prior year period.

Net interest income for the three months ended June 30, 2024 was $15.2 million, compared to $14.2 million for the comparable period in 2023. Net interest income for the six-month period ended June 30, 2024 was $29.1 million, as compared to $28.1 million in the same period last year. An increase in interest income from loans, due to a higher volume of average loans outstanding and the average rates earned on these loans, was partially offset by higher average balances in interest-bearing demand and money market deposits, IRA and time certificates, and long-term debt and an increase in rates paid for these liabilities. For the 2024 second quarter, LCNB’s tax equivalent net interest margin was 2.86%, compared to 3.28% for the same period last year. Net interest margin for the six-month period ended June 30, 2024 was 2.80%, as compared to 3.28% in the same period last year.

Non-interest income for the three months ended June 30, 2024 was $4.1 million, compared to $3.6 million for the same period last year. For the six months ended June 30, 2024, non-interest income increased $782,000, or by 10.8%, to $8.0 million, compared to $7.2 million for the same period last year. The increase in non-interest income for both the three- and six-month periods was primarily due to higher fiduciary income and higher gains on sales of loans. Partially offsetting non-interest income during the quarter was a $843,000 pretax loss on the sale of approximately $48.9 million of below market rate loans acquired from Cincinnati Federal. The Company estimates an earn-back period of three to four months on the sale associated with reduced interest expense.

Non-interest expense for the three months ended June 30, 2024 was $17.8 million, compared to $12.1 million for the same period last year. The $5.7 million increase was primarily due to higher personnel and operating expenses, as well as one-time merger related expenses, associated with the Cincinnati Federal and Eagle acquisitions. For the six months ended June 30, 2024, non-interest expense was $8.7 million higher than the comparable period in 2023, partially due to an increase of $3.2 million in salaries and employee benefit costs, a $459,000 increase in FDIC insurance premiums, and a $2.7 million increase in merger-related expenses. In addition, non-interest expense for the 2023 second quarter benefited from a $425,000 gain recognized on the sale of an office building that had been closed as a result of LCNB's office consolidation strategy. The remaining net increase can be attributed to smaller increases in various other accounts.

Capital Allocation
During the six months ended June 30, 2024, LCNB did not repurchase any of its outstanding shares. At June 30, 2024, LCNB had 315,047 shares remaining under its share repurchase program.

For the second quarter ended June 30, 2024, LCNB paid $0.22 per share in dividends, a 4.8% increase from $0.21 per share in the second quarter of last year. Year-to-date, LCNB paid $0.44 per share in dividends, compared to $0.42 per share for the first half of last year.






Balance Sheet
Total assets at June 30, 2024 increased 21.6%, to $2.37 billion, from $1.95 billion at June 30, 2023. Net loans at June 30, 2024 increased 20.9%, to $1.73 billion, compared to $1.43 billion at June 30, 2023. The year-over-year improvement resulted primarily from the contribution of continued organic loan growth and the completion of the Cincinnati Federal and Eagle acquisitions. Not including the Cincinnati Federal and Eagle acquisitions, total net loans increased 2.1% organically, or by $30.4 million, from the same period a year ago.

Loans held for sale totaled $44.0 million, compared to $75.6 million at March 31, 2024, and are primarily composed of loans scheduled to be sold to an investor during the remainder of 2024. LCNB anticipates that proceeds from the sale will be used for general corporate purposes, which may include supporting loan growth, paying down long-term debt, and adding to liquidity balances.

Total deposits at June 30, 2024 increased 21.7% to $1.94 billion, compared to $1.60 billion at June 30, 2023. Not including the Cincinnati Federal and Eagle acquisitions, total deposits increased 6.8% organically, or by $108.7 million, from June 30, 2023.

As of the transaction date, the fair value of loans acquired from Eagle totaled $127.0 million and the fair value of deposits acquired totaled $132.4 million. Core deposit intangibles totaled $3.8 million and the increase to goodwill was $14.0 million.

Assets Under Management
Total assets managed at June 30, 2024 were a record $4.21 billion, compared to $3.23 billion at June 30, 2023. The year-over-year increase in total assets managed was primarily due to the Cincinnati Federal and Eagle acquisitions and organic growth in LCNB total assets, trust and investments, mortgage loans serviced, and brokerage accounts. Organically, 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. Mortgage loans serviced increased primarily due to the Cincinnati Federal acquisition.

Asset Quality
For the 2024 second quarter, LCNB recorded a provision for credit losses of $528,000, compared to a provision for credit losses of $30,000 for the 2023 second quarter. For the six months ended June 30, 2024, LCNB recorded a total provision for credit losses of $653,000, compared to a total recovery of credit losses of $27,000 for the six months ended June 30, 2023.

Net charge-offs for the 2024 second quarter were $18,000, or 0.00% of average loans, compared to net charge-offs of $33,000, or 0.01% of average loans, annualized, for the same period last year. For the 2024 six-month period, net charge-offs were $63,000, or 0.01% of average loans, compared to net charge-offs of $49,000, or 0.01% of average loans, for the 2023 six-month period.

Total nonperforming loans, which include non-accrual loans and loans past due 90 days or more and still accruing interest, were $3.0 million, or 0.17% of total loans, at June 30, 2024, compared to $707,000, or 0.05% of total loans, at June 30, 2023. The year-over-year increase in nonaccrual loans was primarily due to one commercial real estate relationship, representing a balance of $2.6 million. LCNB does not foresee a loss on this loan as it is deemed to have adequate provision based on management’s current review of the property value. The nonperforming assets to total assets ratio was 0.13% at June 30, 2024, compared to 0.04% at June 30, 2023.

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 and Northern Kentucky. 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 also provides community-oriented banking services to customers in Northern Kentucky through a bank office in Boone County, Kentucky. The Bank continually strives to exceed customer expectations and provides an array of services for all personal and business banking needs including checking, savings, online banking, personal lending, business lending, agricultural lending, business support, deposit and treasury, investment services, trust and IRAs and stock purchases. LCNB Corp. common shares are traded on the NASDAQ Capital Market Exchange® under the symbol “LCNB.” Learn more about LCNB Corp. at www.lcnb.com.




Forward-Looking Statements
Certain statements made in this news release regarding LCNB’s financial condition, results of operations, plans, objectives, future performance and business, are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements are identified by the fact they are not historical facts and include words such as “anticipate”, “could”, “may”, “feel”, “expect”, “believe”, “plan”, and similar expressions. Please refer to LCNB’s Annual Report on Form 10-K for the year ended December 31, 2023, 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 recent and 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;
5.changes in the interest rate environment, which may include further interest rate increases, 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 and increased competition could adversely affect LCNB’s operating results;
7.changes in 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 geopolitical relations and/or conflicts could create financial market uncertainty and have negative impacts on commodities and currency, which could adversely affect LCNB's operating results and financial condition;
11.difficulties with technology or data security breaches, including cyberattacks, 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 Dodd-Frank Wall Street Reform and Consumer Protection Act, 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.






Exhibit 99.2
LCNB Corp. and Subsidiaries
Financial Highlights
 (Dollars in thousands, except per share amounts)
(Unaudited)
Three Months EndedSix Months Ended
06-30-202403-31-202412-31-202309-30-202306-30-202306-30-202406-30-2023
Condensed Income Statement
Interest income
$26,965 $24,758 $23,310 19,668 18,703 51,72336,621
Interest expense
11,748 10,863 8,651 6,097 4,526 22,6118,502
Net interest income
15,217 13,895 14,659 13,571 14,177 29,11228,119
Provision for (recovery of) credit losses
528 125 2,218 (114)30 653(27)
Net interest income after provision for (recovery of) credit losses
14,689 13,770 12,441 13,685 14,147 28,45928,146
Non-interest income
4,080 3,929 4,606 3,578 3,646 8,0097,227
Non-interest expense
17,825 15,472 17,576 12,244 12,078 33,29724,603
Income (loss) before income taxes
944 2,227 (529)5,019 5,715 3,17110,770
Provision for (benefit from) income taxes
19 312 (236)949 1,021 3311,919
Net income (loss)
$925 $1,915 $(293)$4,070 4,694 2,840 8,851 
Supplemental Income Statement Information
Amort/Accrete income on acquired loans
$1,248 $776 $410 — —2,02474
Amort/Accrete expenses on acquired interest-bearing liabilities$638 $459 $309 — —1,096—
Tax-equivalent net interest income
$15,256 $13,933 $14,703 13,617 14,22329,18928,212
Per Share Data
Dividends per share
$0.22 $0.22 $0.22 0.21 0.210.440.42
Basic earnings (loss) per common share
$0.07 $0.15 $(0.02)0.37 0.420.210.79
Diluted earnings (loss) per common share
$0.07 $0.15 $(0.02)0.37 0.420.210.79
Book value per share
$17.33 $17.67 $17.86 18.10 18.2017.3318.20
Tangible book value per share
$10.08 $11.26 $11.42 12.72 12.8110.0812.81
Weighted average common shares outstanding:
Basic
14,033,264 13,112,302 12,378,289 11,038,720 11,056,30813,610,85411,122,371
Diluted
14,033,264 13,112,302 12,378,289 11,038,720 11,056,30813,610,85411,122,371
Shares outstanding at period end
14,151,755 13,224,276 13,173,569 11,123,382 11,116,08014,151,75511,116,080
Selected Financial Ratios
Return on average assets
0.15%0.34%(0.05)%0.82%0.98%0.24%0.93%
Return on average equity
1.53%3.28%(0.53)%7.92%9.22%2.38%8.78%
Return on average tangible common equity2.02%4.39%(0.72)%11.21%13.07%3.17%12.46%
Dividend payout ratio
314.29%146.67%NM56.76%50.00%209.52%53.16%
Net interest margin (tax equivalent)
2.86%2.72%2.99%3.04%3.28%2.80%3.28%
Efficiency ratio (tax equivalent)
92.19%86.62%91.02%71.21%67.59%89.51%69.42%
Selected Balance Sheet Items
Cash and cash equivalents
$34,872 $32,951 $39,723 43,422 26,020 
Debt and equity securities
312,241 306,775 318,723 309,094 314,763 
Loans:
Commercial and industrial$125,703 $122,229 $120,411 125,751 127,553 
Commercial, secured by real estate1,117,798 1,099,601 1,107,556 981,787 961,173 
Residential real estate458,949 398,250 459,073 313,286 312,338 
Consumer22,912 24,137 25,578 27,018 29,007 
Agricultural11,685 12,647 10,952 11,278 9,955 
Other, including deposit overdrafts233 73 82 80 69 
Deferred net origination fees(533)(583)(181)(796)(844)
  Loans, gross
1,736,747 1,656,354 1,723,471 1,458,404 1,439,251 
Less allowance for credit losses
11,270 10,557 10,525 7,932 7,956 
  Loans, net
$1,725,477 1,645,797 1,712,946 1,450,472 1,431,295 
Loans held for sale44,002 75,581 — — — 
NM - Not Meaningful






Three Months EndedSix Months Ended
06-30-202403-31-202412-31-202309-30-202306-30-202306-30-202406-30-2023
Selected Balance Sheet Items, continued
Allowance for Credit Losses on Loans:
Allowance for credit losses, beginning of period$10,557 10,525 7,932 7,956 7,858 
Fair value adjustment for purchased credit deteriorated loans189 — 493 — — 
Provision for credit losses
542 77 2,203 9 131 
Losses charged off(87)(78)(126)(57)(49)
Recoveries69 33 23 24 16 
Allowance for credit losses, end of period$11,270 10,557 10,525 7,932 7,956 
Total earning assets
$2,058,110 $1,971,130 $2,045,382 1,787,796 $1,756,157 
Total assets
2,371,313 2,283,151 2,291,592 1,981,668 1,950,763 
Total deposits
1,943,060 1,858,493 1,824,389 1,616,890 1,596,709 
Short-term borrowings
— 10,000 97,395 30,000 112,289 
Long-term debt
162,150 162,638 113,123 112,641 18,122 
Total shareholders’ equity
245,214 233,663 235,303 201,349 202,316 
Equity to assets ratio
10.34 %10.23 %10.27 %10.16 %10.37 %
Loans to deposits ratio
89.38 %89.12 %94.47 %90.20 %90.14 %
Tangible common equity (TCE)
$142,679 $145,850 $146,999 141,508 142,362 
Tangible common assets (TCA)
2,268,778 2,195,338 2,203,288 1,921,827 1,890,809 
TCE/TCA
6.29 %6.64 %6.67 %7.36 %7.53 %
Selected Average Balance Sheet Items
Cash and cash equivalents
$39,396 $51,366 $49,436 36,177 30,742 45,378 33,205 
Debt and equity securities
309,668 310,771 310,274 313,669 321,537 310,222 324,320 
Loans, including loans held for sale
$1,818,253 $1,722,568 $1,622,911 1,451,153 1,405,939 1,770,410 1,397,708 
Less allowance for credit losses on loans
11,386 10,523 8,826 7,958 7,860 10,954 7,692 
Net loans
$1,806,867 1,712,045 1,614,085 1,443,195 1,398,079 1,759,456 1,390,016 
Total earning assets, including loans held for sale
$2,142,064 $2,056,656 $1,952,121 1,775,713 1,737,256 2,099,362 1,733,160 
Total assets
2,404,782 2,294,766 2,182,477 1,971,269 1,927,956 2,349,774 1,925,004 
Total deposits
1,965,987 1,824,546 1,759,677 1,610,508 1,604,346 1,895,268 1,594,159 
Short-term borrowings
11,291 65,052 64,899 63,018 79,485 38,171 86,996 
Long-term debt
162,555 150,177 115,907 72,550 18,514 156,366 18,747 
Total shareholders’ equity
243,927 235,119 220,678 203,967 204,085 239,523 203,257 
Equity to assets ratio
10.14 %10.25 %10.11 %10.35 %10.59 %10.19 %10.56 %
Loans to deposits ratio
92.49 %94.41 %92.23 %90.11 %87.63 %93.41 %87.68 %
Asset Quality
Net charge-offs
$18 $45 $102 33 33 6349
Other real estate owned
— — — — — ——
Non-accrual loans
$2,845 $2,719 $80 85 451 2,845 451 
Loans past due 90 days or more and still accruing
159 524 72 176 256 159 256 
Total nonperforming loans
$3,004 3,243 152 261 707 3,004 707 
Net charge-offs to average loans
0.00 %0.01 %0.02 %0.01 %0.01 %0.01 %0.01 %
Allowance for credit losses on loans to total loans
0.65 %0.64 %0.61 %0.54 %0.55 %
Nonperforming loans to total loans
0.17 %0.20 %0.01 %0.02 %0.05 %
Nonperforming assets to total assets
0.13 %0.14 %0.01 %0.01 %0.04 %






Three Months EndedSix Months Ended
06-30-202403-31-202412-31-202309-30-202306-30-202306-30-202406-30-2023
Assets Under Management
LCNB Corp. total assets
$2,371,313 2,283,151 2,291,592 1,981,668 1,950,763 
Trust and investments (fair value)
897,746 890,800 806,770 731,342 744,149 
Mortgage loans serviced
422,951 386,490 391,800 146,483 143,093 
Cash management
93,842 13,314 2,375 2,445 2,668 
Brokerage accounts (fair value)
419,646 411,211 392,390 368,854 384,889 
Total assets managed
$4,205,498 3,984,966 3,884,927 3,230,792 3,225,562 
Reconciliation of Net Income Less Tax-Effected Merger-Related Costs
Net income (loss)
$925 1,915 (293)4,070 4,694 2,840 8,851 
Merger expenses
2,320 775 3,914 302 415 3,095 440 
Provision for credit losses on non-PCD loans
763 — 1,722 — — 763 — 
Loss on sale of below-market acquired loans
843 — — — — 843 — 
Tax effect(773)(90)(1,102)(3)(63)(863)(67)
Adjusted net income
$4,078 2,600 4,241 4,369 5,046 6,678 9,224 
Adjusted basic and diluted earnings per share$0.29 $0.20 $0.34 0.40 0.45 0.490.82
Adjusted return on average assets0.68 %0.46 %0.77 %0.88 %1.05 %0.57 %0.97 %
Adjusted return on average equity6.72 %4.45 %7.62 %8.50 %9.92 %5.61 %9.15 %








Three Months Ended June 30,Three Months Ended March 31,
202420232024
Average
Outstanding
Balance		Interest
Earned/
Paid		Average
Yield/
Rate		Average
Outstanding
Balance		Interest
Earned/
Paid		Average
Yield/
Rate		Average
Outstanding
Balance		Interest
Earned/
Paid		Average
Yield/
Rate
Loans (1)$1,818,253 24,836 5.49 %$1,405,939 16,763 4.78 %$1,722,568 22,682 5.30 %
Interest-bearing demand deposits14,143 215 6.11 %9,780 144 5.91 %23,317 324 5.59 %
Federal Reserve Bank stock6,248 180 11.59 %4,652 140 12.07 %5,509 (4)(0.29)%
Federal Home Loan Bank stock20,152 367 7.32 %6,713 121 7.23 %16,239 341 8.45 %
Investment securities:
Equity securities4,985 39 3.15 %3,386 38 4.50 %4,995 40 3.22 %
Debt securities, taxable259,768 1,183 1.83 %282,325 1,323 1.88 %265,164 1,232 1.87 %
Debt securities, non-taxable (2)18,515 184 4.00 %24,461 220 3.61 %18,864 181 3.86 %
Total earnings assets2,142,064 27,004 5.07 %1,737,256 18,749 4.33 %2,056,656 24,796 4.85 %
Non-earning assets274,104 198,560 248,633 
Allowance for credit losses(11,386)(7,860)(10,523)
Total assets$2,404,782 $1,927,956 $2,294,766 
Interest-bearing demand and money market deposits$648,772 3,575 2.22 %$521,422 1,597 1.23 %$643,199 3,917 2.45 %
Savings deposits372,240 307 0.33 %395,367 134 0.14 %368,049 206 0.23 %
IRA and time certificates493,297 5,808 4.74 %215,403 1,604 2.99 %370,130 4,067 4.42 %
Short-term borrowings11,291 181 6.45 %79,485 1,008 5.09 %65,052 935 5.78 %
Long-term debt162,555 1,877 4.64 %18,514 183 3.96 %150,177 1,738 4.65 %
Total interest-bearing liabilities1,688,155 11,748 2.80 %1,230,191 4,526 1.48 %1,596,607 10,863 2.74 %
Demand deposits451,678 472,154 443,168 
Other liabilities21,022 21,526 19,872 
Equity243,927 204,085 235,119 
Total liabilities and equity$2,404,782 $1,927,956 $2,294,766 
Net interest rate spread (3)2.27 %2.85 %2.11 %
Net interest income and net interest margin on a taxable-equivalent basis (4)15,256 2.86 %14,223 3.28 %13,933 2.72 %
Ratio of interest-earning assets to interest-bearing liabilities126.89 %141.22 %128.81 %
(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.







Exhibit 99.2
LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited, dollars in thousands)
June 30,
2024		December 31, 2023
ASSETS:
Cash and due from banks$25,750 36,535 
Interest-bearing demand deposits9,122 3,188 
Total cash and cash equivalents34,872 39,723 
Investment securities:
Equity securities with a readily determinable fair value, at fair value1,330 1,336 
Equity securities without a readily determinable fair value, at cost3,666 3,666 
Debt securities, available-for-sale, at fair value261,357 276,601 
Debt securities, held-to-maturity, at cost, net of allowance for credit losses of $7 and $5 at June 30, 2024 and December 31, 2023, respectively18,844 16,858 
Federal Reserve Bank stock, at cost6,334 5,086 
Federal Home Loan Bank stock, at cost20,710 15,176 
Loans, net of allowance for credit losses of $11,270 and 10,525 at June 30, 2024 and December 31, 2023, respectively1,725,477 1,712,946 
Loans held for sale44,002 — 
Premises and equipment, net40,766 36,302 
Operating lease right-of-use assets6,026 6,000 
Goodwill93,922 79,509 
Core deposit and other intangibles, net12,135 9,494 
Bank-owned life insurance53,510 49,847 
Interest receivable9,473 8,405 
Other assets, net38,889 30,643 
TOTAL ASSETS$2,371,313 2,291,592 
LIABILITIES:
Deposits:
Noninterest-bearing$449,110 462,267 
Interest-bearing1,493,950 1,362,122 
Total deposits1,943,060 1,824,389 
Short-term borrowings— 97,395 
Long-term debt162,150 113,123 
Operating lease liabilities6,290 6,261 
Accrued interest and other liabilities14,599 15,121 
TOTAL LIABILITIES2,126,099 2,056,289 
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 17,363,138 and 16,384,952 shares at June 30, 2024 and December 31, 2023, respectively; outstanding 14,151,755 and 13,173,569 shares at June 30, 2024 and December 31, 2023, respectively187,195 173,637 
Retained earnings136,883 140,017 
Treasury shares at cost, 3,211,383 shares at June 30, 2024 and December 31, 2023(56,015)(56,015)
Accumulated other comprehensive loss, net of taxes(22,849)(22,336)
TOTAL SHAREHOLDERS' EQUITY245,214 235,303 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$2,371,313 $2,291,592 






Exhibit 99.2
LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
INTEREST INCOME:
Interest and fees on loans$24,836 16,763 47,518 32,906 
Dividends on equity securities:
With a readily determinable fair value9 8 18 25 
Without a readily determinable fair value30 30 61 50 
Interest on debt securities:
Taxable1,183 1,323 2,415 2,666 
Non-taxable145 174 288 350 
Other investments762 405 1,423 624 
TOTAL INTEREST INCOME26,965 18,703 51,723 36,621 
INTEREST EXPENSE:
Interest on deposits9,690 3,335 17,880 5,791 
Interest on short-term borrowings181 1,008 1,116 2,312 
Interest on long-term debt1,877 183 3,615 399 
TOTAL INTEREST EXPENSE11,748 4,526 22,611 8,502 
NET INTEREST INCOME15,217 14,177 29,112 28,119 
PROVISION FOR (RECOVERY OF) CREDIT LOSSES528 30 653 (27)
NET INTEREST INCOME AFTER PROVISION FOR (RECOVERY OF) CREDIT LOSSES14,689 14,147 28,459 28,146 
NON-INTEREST INCOME:
Fiduciary income2,067 1,787 4,040 3,527 
Service charges and fees on deposit accounts1,537 1,445 2,921 2,927 
Net losses from sales of debt securities, available-for-sale— — (214)— 
Bank-owned life insurance income341 277 659 548 
Net gains from sales of loans50 3 572 9 
Other operating income85 134 31 216 
TOTAL NON-INTEREST INCOME4,080 3,646 8,009 7,227 
NON-INTEREST EXPENSE:
Salaries and employee benefits9,006 7,061 17,560 14,410 
Equipment expenses395 417 785 778 
Occupancy expense, net944 599 1,949 1,562 
State financial institutions tax476 396 904 793 
Marketing210 320 384 512 
Amortization of intangibles298 112 534 223 
FDIC insurance premiums, net394 224 898 439 
Contracted services844 666 1,628 1,307 
Merger-related expenses2,320 415 3,095 440 
Other non-interest expense2,938 1,868 5,560 4,139 
TOTAL NON-INTEREST EXPENSE17,825 12,078 33,297 24,603 
INCOME BEFORE INCOME TAXES944 5,715 3,171 10,770 
PROVISION FOR INCOME TAXES19 1,021 331 1,919 
NET INCOME$925 4,694 2,840 8,851 
Earnings per common share:
Basic$0.07 0.42 0.21 0.79 
Diluted$0.07 0.42 0.21 0.79 
Weighted average common shares outstanding:
Basic14,033,264 11,056,308 13,610,854 11,122,371 
Diluted14,033,264 11,056,308 13,610,854 11,122,371 


v3.24.2
Cover
 3 Months Ended
Mar. 31, 2024
Document Information [Line Items]  
Document Type 8-K
Document Period End Date Jul. 23, 2024
Entity Registrant Name LCNB CORP.
Entity Tax Identification Number 31-1626393
Entity Incorporation, State or Country Code OH
Entity File Number 001-35292
Entity Address, Address Line One 2 North Broadway
Entity Address, State or Province OH
Entity Address, City or Town Lebanon
Entity Address, Postal Zip Code 45036
City Area Code (513)
Local Phone Number 932-1414
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, No Par Value
Trading Symbol LCNB
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0001074902
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