Form 8-K - Current report

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 20, 2023

LCNB CORP.

(Exact name of Registrant as specified in its Charter)


Ohio	001-35292	31-1626393
(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 class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, No Par Value

LCNB

NASDAQ

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 20, 2023, LCNB Corp. issued an earnings release announcing its financial results for the three and six months ended June 30, 2023. 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.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No. Description

99.1 Earnings Press Release Dated July 2 0 , 2023

99.2 Unaudited Financial Highlights

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 20, 2023

By: /s/ Robert C. Haines II

Robert C. Haines II
Chief Financial Officer

Exhibit 99.1

Press Release

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 RECORD FINANCIAL RESULTS FOR

THE THREE AND SIX MONTHS ENDED JUNE 30, 2023

Ended the Second Quarter with a Stable Deposit Base and a 90.14% Loan to Deposit Ratio

Net Loans Increased 4.7% Year-over-Year to a Record of $1.43 Billion

Asset Quality Remains Excellent with Total Nonperforming Loans to Total Loans of 0.05% at June 30, 2023

LCNB Wealth Management Assets Up 21.4% Year-over-Year to a Record $1.13 Billion

Cincinnati Bancorp, Inc. Acquisition Expected to Close in the 2023 Fourth Quarter

LEBANON, Ohio--LCNB Corp. ("LCNB") (NASDAQ: LCNB) today announced financial results for the three and six months ended June 30, 2023.

Commenting on the financial results, LCNB President and Chief Executive Officer Eric Meilstrup said, “I am pleased with our favorable second quarter performance and the progress we are making despite a difficult operating environment. During the second quarter, we increased net income and earnings per share from first quarter levels, maintained excellent asset quality, and achieved record net loans, LCNB Wealth Management assets, and total assets. In addition, our flexible balance sheet and solid capital levels allowed us to support our organic growth strategies and return capital back to our shareholders.”

Mr. Meilstrup continued, “While we expect the challenging banking landscape to persist throughout the second half of 2023, we remain focused on managing the factors under our control. This includes controlling operating expenses, managing our balance sheet, maintaining excellent asset quality, and supporting our local communities. In addition, we continue to make progress completing the acquisition of Cincinnati Bancorp, which is expected to close during the 2023 fourth quarter. Once finalized, we expect LCNB will have total assets of approximately $2.3 billion with 33 banking offices in Ohio and one branch office in Northern Kentucky. With an expanded position within the greater Cincinnati and Northern Kentucky markets, we believe this transaction should enhance LCNB’s long-term profitability metrics and earnings growth rate in the future. We are excited to complete the acquisition and welcome Cincinnati Bancorp’s customers, employees, and shareholders to LCNB,” concluded Mr. Meilstrup.

Income Statement

Net income for the 2023 second quarter was $4,694,000, compared to $5,618,000 for the same period last year. Earnings per basic and diluted share for the 2023 second quarter were $0.42, compared to $0.49 for the same period last year. Net income for the six-month period ended June 30, 2023 was $8,851,000, compared to $10,141,000 for the same period last year. Earnings per basic and diluted share for the six-month period ended June 30, 2023 were $0.79, compared to $0.87 for the same period last year.

Adjusted net income for the 2023 second quarter was $5.0 million, or $0.45 per diluted share, compared to $5.6 million, or $0.49 per diluted share, in the prior year quarter. Adjusted net income accounts for the impact of one-time merger-related expenses, net of tax, associated with the Cincinnati Bancorp, Inc. acquisition. Adjusted net income for the first half ended June 30, 2023 was $9.2 million, or $0.82 per diluted share, compared to $10.1 million, or $0.87 per diluted share, in the prior year period.

Net interest income for the three months ended June 30, 2023 was $14,177,000, compared to $15,167,000 for the comparable period in 2022. Net interest income for the six-month period ended June 30, 2023 was $28,119,000, as compared to $29,390,000 in the same period last year. Contributing to the variances for both the three and six-month periods were increases in the amount of short-term borrowings combined with higher interest expense associated with the rapid year-over-year increase in the Effective Federal Funds Rate. For the 2023 second quarter, LCNB’s tax equivalent net interest margin was 3.28%, compared to 3.54% for the same period last year.

Non-interest income for the three months ended June 30, 2023 increased $118,000, or by 3.3%, to $3,646,000, compared to $3,528,000 for the same period last year. For the six months ended June 30, 2023, non-interest income increased $149,000, or by 2.1%, to $7,227,000, compared to $7,078,000 for the same period last year. The increase in non-interest income for both the three and six-month periods were primarily due to higher fiduciary income and a decrease in net unrealized losses recognized on equity securities, partially offset by lower gains on sales of loans. Also contributing to the increase during the six-month period were gains recognized on the sale of equity securities during the 2023 first quarter.

Non-interest expense for the three months ended June 30, 2023 was $609,000 greater than the comparable period in 2022, primarily due to $415,000 in one-time merger-related expenses. For the first half ended June 30, 2023, non-interest expense was $884,000 higher than the comparable period in 2022, partially due to $440,000 in merger-related expenses. In addition, non-interest expense for the 2022 second quarter benefited from an $889,000 gain from the sale of other real estate owned.

Capital Allocation

During the 2023 second quarter, LCNB invested $1.5 million to repurchase 92,885 shares of its outstanding stock at an average price of $15.86 per share. Year-to-date, LCNB invested $3.3 million to repurchase 199,913 shares of its outstanding stock at an average price of $16.47 per share. This equates to approximately 1.78% of the Company’s outstanding common stock prior to the repurchase. At June 30, 2023, LCNB had 315,047 shares remaining under its February 2023 share repurchase program.

For the second quarter ended June 30, 2023, LCNB paid $0.21 per share in dividends, a 5.0% increase from $0.20 per share for the second quarter last year. Year-to-date, LCNB paid $0.42 per share in dividends, compared to $0.40 per share for the first half last year.

Balance Sheet

Total assets at June 30, 2023 increased 1.9% to a record $1.95 billion from $1.91 billion at June 30, 2022. Net loans at June 30, 2023 increased 4.7% to a record $1.43 billion, compared to $1.37 billion at June 30, 2022.

Total deposits at June 30, 2023 decreased 3.7% to $1.60 billion, compared to $1.66 billion at June 30, 2022, as LCNB experienced greater competition for deposit accounts. LCNB’s uninsured deposits to total deposits was approximately 11.7% for the quarter ended June 30, 2023.

Assets Under Management

Total assets managed at June 30, 2023 were a record $3.23 billion, compared to $3.04 billion at June 30, 2022. The year-over-year increase in total assets managed was primarily due to increases in LCNB Corp. total assets, trust and investments, and brokerage accounts. Trust and investments and brokerage accounts increased due to a higher number of new LCNB Wealth Management customer accounts opened over the past twelve months and an increase in the fair value of managed assets associated with an improving capital market environment, partially offset by decreases in cash management accounts and mortgage loans serviced.

Asset Quality

For the 2023 second quarter, the total provision for credit losses was $30,000, compared to a total provision for credit losses of $377,000 for the 2022 second quarter. For the six months ended June 30, 2023, LCNB recorded a total recovery of credit losses of $27,000, compared to a total provision for credit losses of $426,000 for the six months ended June 30, 2022.

Net charge-offs for the 2023 second quarter were $33,000, or 0.01% of average loans, compared to net charge-offs of $74,000, or 0.02% of average loans, for the same period last year. For the 2023 six-month period, net charge-offs were $49,000, or 0.01% of average loans, compared to net charge-offs of $99,000, or 0.03% of average loans, for the 2022 six-month period.

Total nonperforming loans, which includes non-accrual loans and loans past due 90 days or more and still accruing interest, increased $111,000 from $599,000 or 0.04% of total loans at June 30, 2022, to $710,000 or 0.05% of total loans at June 30, 2023. Nonperforming assets to total assets was 0.04% at June 30, 2023, compared to 0.03% at June 30, 2022.

Merger Agreement With Cincinnati Bancorp, Inc.

LCNB and Cincinnati Bancorp, Inc. (“CNNB”), the holding company for Cincinnati Federal, a federally chartered stock

savings and loan association, signed a definitive merger agreement on May 18, 2023 whereby LCNB will acquire CNNB in a stock-and-cash transaction. CNNB operates five full-service branch offices in Cincinnati, Ohio and Northern Kentucky. When completed, the transaction will significantly increase LCNB’s existing presence in the Cincinnati market and expand LCNB’s community banking franchise across the Ohio River into the Northern Kentucky market.

Subject to the terms of the merger agreement, which has been approved by the Board of Directors of each company, CNNB shareholders will have the opportunity to elect to receive either 0.9274 shares of LCNB stock or $17.21 per share in cash for each share of CNNB common stock owned, subject to 80% of all CNNB shares being exchanged for LCNB common stock. Subject to regulatory approval, CNNB shareholder approval, and other customary conditions set forth in the definitive merger agreement, the transaction is anticipated to close in the fourth quarter of 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. A financial institution with a long tradition for building strong relationships with customers and communities, the Bank offers convenient banking locations in Butler, Clermont, Clinton, Fayette, Franklin, Hamilton, Montgomery, Preble, Ross, and Warren Counties, Ohio. The Bank continually strives to exceed customer expectations and provides an array of services for all personal and business banking needs including checking, savings, online banking, personal lending, business lending, agricultural lending, business support, deposit and treasury, investment services, trust and IRAs and stock purchases. LCNB Corp. common shares are traded on the NASDAQ Capital Market Exchange® under the symbol “LCNB.” Learn more about LCNB Corp. at www.lcnb.com.

Forward-Looking Statements

Certain statements made in this news release regarding LCNB’s financial condition, results of operations, plans, objectives, future performance and business, are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements are identified by the fact they are not historical facts and include words such as “anticipate”, “could”, “may”, “feel”, “expect”, “believe”, “plan”, and similar expressions. Please refer to LCNB’s Annual Report on Form 10-K for the year ended December 31, 2022, 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.the uncertainties for LCNB's business, results of operations and financial condition resulting from the recovery from the COVID-19 pandemic;

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

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

5.LCNB may face competitive loss of customers;

6.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;

7.changes in general economic conditions and increased competition could adversely affect LCNB’s operating results;

8.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;

9.LCNB may experience difficulties growing loan and deposit balances;

10.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;

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 Coronavirus Aid, Relief, and Economic Security ("CARES") Act, 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, and the Tax Cuts and Jobs Act, 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 Ended						Six Months Ended
	06-30-2023		03-31-2023	12-31-2022	09-30-2022	06-30-2022	06-30-2023	06-30-2022
Condensed Income Statement
Interest income	$	18,703	17,918	17,719	16,704	16,208	36,621	31,330
Interest expense	4,526		3,976	1,511	1,260	1,041	8,502	1,940
Net interest income	14,177		13,942	16,208	15,444	15,167	28,119	29,390
Provision for (recovery of) credit losses	30		(57)	(19)	(157)	377	(27)	426
Net interest income after provision for (recovery of) credit losses	14,147		13,999	16,227	15,601	14,790	28,146	28,964
Non-interest income	3,646		3,581	3,629	3,581	3,528	7,227	7,078
Non-interest expense	12,078		12,525	12,065	12,350	11,469	24,603	23,719
Income before income taxes	5,715		5,055	7,791	6,832	6,849	10,770	12,323
Provision for income taxes	1,021		898	1,383	1,253	1,231	1,919	2,182
Net income	$	4,694	4,157	6,408	5,579	5,618	8,851	10,141

Supplemental Income Statement Information
Amort/Accret income on acquired loans	$	—	74	249	144	61	74	127
Tax-equivalent net interest income	$	14,223	13,989	16,257	15,495	15,217	28,212	29,490

Per Share Data
Dividends per share	$	0.21	0.21	0.21	0.20	0.20	0.42	0.40
Basic earnings per common share	$	0.42	0.37	0.57	0.49	0.49	0.79	0.87
Diluted earnings per common share	$	0.42	0.37	0.57	0.49	0.49	0.79	0.87
Book value per share	$	18.20	18.22	17.82	17.31	17.84	18.20	17.84
Tangible book value per share	$	12.81	12.86	12.48	11.97	12.53	12.81	12.53
Weighted average common shares outstanding:
Basic	11,056,308		11,189,170	11,211,328	11,284,225	11,337,805	11,122,371	11,576,873
Diluted	11,056,308		11,189,170	11,211,328	11,284,225	11,337,805	11,122,371	11,576,873
Shares outstanding at period end	11,116,080		11,202,063	11,259,080	11,293,639	11,374,515	11,116,080	11,374,515

Selected Financial Ratios
Return on average assets	0.98%		0.88%	1.34%	1.15%	1.18%	0.93%	1.07%
Return on average equity	9.22%		8.33%	12.90%	10.80%	10.96%	8.78%	9.48%
Return on average tangible common equity	13.07%		11.85%	18.59%	15.30%	15.52%	12.46%	13.18%
Dividend payout ratio	50.00%		56.76%	36.84%	40.82%	40.82%	53.16%	45.98%
Net interest margin (tax equivalent)	3.28%		3.28%	3.77%	3.54%	3.54%	3.28%	3.45%
Efficiency ratio (tax equivalent)	67.59%		71.29%	60.67%	64.74%	61.18%	69.42%	64.86%

Selected Balance Sheet Items
Cash and cash equivalents	$	26,020	31,876	22,701	29,460	31.815
Debt and equity securities	314,763		328,194	323,167	325,801	337,952

Loans:
Commercial and industrial	$	127,553	124,240	120,236	114,694	114,971
Commercial, secured by real estate	961,173		932,208	938,022	908,130	905,703
Residential real estate	312,338		303,051	305,575	316,669	315,930
Consumer	29,007		28,611	28,290	29,451	30,308
Agricultural	9,955		7,523	10,054	8,630	7,412
Other, including deposit overdrafts	69		62	81	52	81
Deferred net origination fees	(844)		(865)	(980)	(937)	(928)
Loans, gross	1,439,251		1,394,830	1,401,278	1,376,689	1,373,477
Less allowance for credit losses on loans	7,956		7,858	5,646	5,644	5,833
Loans, net	$	1,431,295	1,386,972	1,395,632	1,371,045	1,367,644


	Three Months Ended												Six Months Ended
	06-30-2023			03-31-2023		12-31-2022		09-30-2022		06-30-2022			06-30-2023			06-30-2022
Selected Balance Sheet Items, continued

Allowance for Credit Losses on Loans:
Allowance for credit losses, beginning of period	$	7,858		5,646		5,644		5,833		5,530
Cumulative change in accounting principle; adoption of ASU 2016-13	—			2,196		—		—		—
Provision for (recovery of) credit losses	131			32		(19)		(157)		377
Losses charged off	(49)			(36)		(60)		(53)		(116)
Recoveries	16			20		81		21		42
Allowance for credit losses, end of period	$	7,956		7,858		5,646		5,644		5,833

Total earning assets	$	1,756,157		1,736,829		1,726,902		1,714,196		$	1,722,853
Total assets	1,950,763			1,924,531		1,919,121		1,904,700		1,912,901
Total deposits	1,596,709			1,603,881		1,604,970		1,657,370		1,658,825
Short-term borrowings	112,289			76,500		71,455		4,000		5,000
Long-term debt	18,122			18,598		19,072		24,539		25,000
Total shareholders’ equity	202,316			204,072		200,675		195,439		202,960
Equity to assets ratio	10.37		%	10.60	%	10.46	%	10.26	%	10.61		%
Loans to deposits ratio	90.14		%	86.97	%	87.31	%	83.06	%	82.80		%

Tangible common equity (TCE)	$	142,362		144,006		140,498		135,149		142,557
Tangible common assets (TCA)	1,890,809			1,864,465		1,858,944		1,844,410		1,852,224
TCE/TCA	7.53		%	7.72	%	7.56	%	7.33	%	7.70		%

Selected Average Balance Sheet Items
Cash and cash equivalents	$	30,742		35,712		24,330		35,763		$	28,787		$	33,205		$	30,788
Debt and equity securities	321,537			327,123		323,195		338,299		338,149			324,320			339,432

Loans	$	1,405,939		1,389,385		1,383,809		1,384,520		$	1,375,710		$	1,397,708		$	1,376,315
Less allowance for credit losses on loans	7,860			7,522		5,647		5,830		5,532			7,692			5,517
Net loans	$	1,398,079		1,381,863		1,378,162		1,378,690		$	1,370,178		$	1,390,016		$	1,370,798

Total earning assets	$	1,737,256		1,729,008		1,711,524		1,736,031		1,722,503			1,733,160			1,724,938
Total assets	1,927,957			1,921,742		1,903,338		1,928,868		1,912,574			1,925,004			1,915,051
Total deposits	1,604,346			1,583,857		1,637,201		1,669,932		1,655,389			1,594,159			1,651,032
Short-term borrowings	79,485			94,591		21,433		5,728		18,263			86,996			15,399
Long-term debt	18,514			18,983		23,855		24,920		12,637			18,747			11,326
Total shareholders’ equity	204,085			202,419		197,014		205,051		205,645			203,257			215,629
Equity to assets ratio	10.59		%	10.53	%	10.35	%	10.63	%	10.75		%	10.56		%	11.26		%
Loans to deposits ratio	87.63		%	87.72	%	84.52	%	82.91	%	83.10		%	87.68		%	83.36		%

Asset Quality
Net charge-offs (recoveries)	$	33		16		(21)		32		74			49			99
Other real estate owned	—			—		—		—		—			—			—

Non-accrual loans	$	454		701		391		465		599			454			599
Loans past due 90 days or more and still accruing	256			—		39		—		0			256			—
Total nonperforming loans	$	710		701		430		465		599			710			599

Net charge-offs (recoveries) to average loans	0.01		%	0.00	%	(0.01)	%	0.01	%	0.02		%	0.01		%	0.03		%
Allowance for credit losses on loans to total loans	0.55		%	0.56	%	0.40	%	0.41	%	0.42		%
Nonperforming loans to total loans	0.05		%	0.05	%	0.03	%	0.03	%	0.04		%
Nonperforming assets to total assets	0.04		%	0.04	%	0.02	%	0.02	%	0.03		%


	Three Months Ended											Six Months Ended
	06-30-2023			03-31-2023		12-31-2022		09-30-2022		06-30-2022		06-30-2023		06-30-2022

Assets Under Management
LCNB Corp. total assets	$	1,950,763		1,924,531		1,919,121		1,904,700		1,912,901
Trust and investments (fair value)	744,149			716,578		678,366		611,409		625,984
Mortgage loans serviced	143,093			142,167		148,412		145,317		153,557
Cash management	2,668			1,831		1,925		53,199		38,914
Brokerage accounts (fair value)	384,889			374,066		347,737		314,144		303,663
Total assets managed	3,225,562			3,159,173		3,095,561		3,028,769		3,035,019

Reconciliation of Net Income Less Tax-Effected Merger-Related Costs
Net income	$	4,694		4,157		6,408		5,579		5,618		8,851		10,141
Merger-related costs	415			25		—		—		—		440		—
Tax effect	(63)			(4)		—		—		—		(67)		—
Adjusted net income	$	5,046		4,178		6,408		5,579		5,618		9,224		10,141

Adjusted basic and diluted earnings per share	$	0.45		0.37		0.57		0.49		0.49		0.82		0.87
Adjusted return on average assets	1.05		%	0.88	%	1.34	%	1.15	%	1.18	%	0.97	%	1.07	%
Adjusted return on average equity	9.92		%	8.37	%	12.90	%	10.80	%	10.96	%	9.15	%	9.48	%


LCNB CORP. AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS (Dollars in thousands)
	June 30, 2023 (Unaudited)		December 31, 2022
ASSETS:
Cash and due from banks	$	23,877	20,244
Interest-bearing demand deposits	2,143		2,457
Total cash and cash equivalents	26,020		22,701

Investment securities:
Equity securities with a readily determinable fair value, at fair value	1,279		2,273
Equity securities without a readily determinable fair value, at cost	2,099		2,099
Debt securities, available-for-sale, at fair value	281,156		289,850
Debt securities, held-to-maturity, at cost, net of allowance for credit losses	19,117		19,878
Federal Reserve Bank stock, at cost	4,652		4,652
Federal Home Loan Bank stock, at cost	6,460		4,415
Loans, net of allowance for credit losses	1,431,295		1,395,632
Premises and equipment, net	33,145		33,042
Operating leases right of use asset	6,260		6,525
Goodwill	59,221		59,221
Core deposit and other intangibles	1,497		1,827
Bank owned life insurance	44,846		44,298
Interest receivable	7,811		7,482
Other assets	25,905		25,503
TOTAL ASSETS	$	1,950,763	1,919,398

LIABILITIES:
Deposits:
Noninterest-bearing	$	480,288	505,824
Interest-bearing	1,116,421		1,099,146
Total deposits	1,596,709		1,604,970
Short-term borrowings	112,289		71,455
Long-term debt	18,122		19,072
Operating lease liabilities	6,434		6,647
Allowance for credit losses on off-balance sheet credit exposures	381		—
Accrued interest and other liabilities	14,512		16,579
TOTAL LIABILITIES	1,748,447		1,718,723

COMMITMENTS AND CONTINGENT LIABILITIES

SHAREHOLDERS' EQUITY:
Preferred shares – no par value, authorized 1,000,000 shares, none outstanding	123,422		122,839
Common shares –no par value, authorized 19,000,000; issued 14,327,463 and 14,270,550 shares at June 30, 2023 and December 31, 2022, respectively; outstanding 11,116,080 and 11,259,080 shares at March 31, 2023 and December 31, 2022, respectively	21,249		21,230
Retained earnings	141,431		139,249
Treasury shares at cost, 3,211,383 and 3,011,470 shares at June 30, 2023 and December 31, 2022, respectively	(56,015)		(52,689)


LCNB CORP. AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS (Dollars in thousands)
	June 30, 2023 (Unaudited)		December 31, 2022
Accumulated other comprehensive loss, net of taxes	(27,771)		(29,954)
TOTAL SHAREHOLDERS' EQUITY	202,316		200,675
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	1,950,763	1,919,398

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,
	2023		2022	2023	2022
INTEREST INCOME:
Interest and fees on loans	$	16,763	14,548	32,906	28,334
Dividends on equity securities with a readily determinable fair value	8		14	25	26
Dividends on equity securities without a readily determinable fair value	30		5	50	10
Interest on debt securities, taxable	1,323		1,254	2,666	2,349
Interest on debt securities, non-taxable	174		188	350	377
Other investments	405		199	624	234
TOTAL INTEREST INCOME	18,703		16,208	36,621	31,330
INTEREST EXPENSE:
Interest on deposits	3,335		775	5,791	1,514
Interest on short-term borrowings	1,008		163	2,312	249
Interest on long-term debt	183		103	399	177
TOTAL INTEREST EXPENSE	4,526		1,041	8,502	1,940
NET INTEREST INCOME	14,177		15,167	28,119	29,390
Provision for credit losses on loans	132		377	164	426
Provision for (recovery of) credit losses on debt securities, held-to-maturity	(1)		—	(1)	—
Recovery of credit losses on off-balance sheet credit exposures	(101)		—	(190)	—
TOTAL PROVISION FOR (RECOVERY OF) CREDIT LOSSES	30		377	(27)	426
NET INTEREST INCOME AFTER PROVISION FOR (RECOVERY OF) CREDIT LOSSES	14,147		14,790	28,146	28,964
NON-INTEREST INCOME:
Fiduciary income	1,787		1,643	3,527	3,338
Service charges and fees on deposit accounts	1,445		1,546	2,927	2,952

Bank owned life insurance income	277		269	548	534
Gains from sales of loans	3		64	9	188
Other operating income	134		6	216	66
TOTAL NON-INTEREST INCOME	3,646		3,528	7,227	7,078
NON-INTEREST EXPENSE:
Salaries and employee benefits	7,061		7,014	14,410	14,229
Equipment expenses	417		428	778	836
Occupancy expense, net	599		735	1,562	1,510
State financial institutions tax	396		437	793	873
Marketing	320		368	512	630
Amortization of intangibles	112		112	223	252
FDIC insurance premiums, net	224		134	439	260
Contracted services	666		679	1,307	1,289
Other real estate owned, net	1		(879)	2	(879)
Merger-related expenses	415		—	440	—
Other non-interest expense	1,867		2,441	4,137	4,719
TOTAL NON-INTEREST EXPENSE	12,078		11,469	24,603	23,719
INCOME BEFORE INCOME TAXES	5,715		6,849	10,770	12,323
PROVISION FOR INCOME TAXES	1,021		1,231	1,919	2,182
NET INCOME	$	4,694	5,618	8,851	10,141


	Three Months Ended June 30,		Six Months Ended June 30,
	2023	2022	2023	2022
Earnings per common share:
Basic	0.42	0.49	0.79	0.87
Diluted	0.42	0.49	0.79	0.87
Weighted average common shares outstanding:
Basic	11,056,308	11,337,805	11,122,371	11,576,873
Diluted	11,056,308	11,337,805	11,122,371	11,576,873

Cover	6 Months Ended
Cover	Jun. 30, 2023
Document Information [Line Items]
Document Type	8-K
Document Period End Date	Jul. 20, 2023
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