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): October 23, 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 October 23, 2023, LCNB Corp. issued an earnings release announcing its financial results for the three months ended September 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 October 2 3 , 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: October 23, 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 FINANCIAL RESULTS FOR

THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023

Ended the Third Quarter with a Stable Deposit Base and a 90.20% Loan-to-Deposit Ratio

Net Loans Increased 5.8% Year-over-Year to a Record of $1.45 Billion

Asset Quality Remains Excellent with Total Nonperforming Loans to Total Loans of 0.02% at September 30, 2023

LCNB Wealth Management Assets Up 18.9% Year-over-Year to $1.10 Billion

Cincinnati Bancorp, Inc. Acquisition Expected to Close in November 2023

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

Commenting on the financial results, LCNB President and Chief Executive Officer Eric Meilstrup said, “LCNB achieved another solid quarter of growth, as total assets increased 4.0% from the same period a year ago to a record $1.98 billion, primarily due to a 5.8% increase in net loans. Significant competition for deposits and higher year-over-year levels of borrowings continue to increase our cost of funds and impact profitability and we expect these trends to continue over the near term. As we approach the end of 2023, we remain focused on managing non-interest expenses as well as maintaining excellent asset quality and strong liquidity levels. I am pleased with the progress our team continues to make in 2023 and their ability to execute our strategic objectives and deliver solid results. I want to thank our dedicated employees for all their hard work.”

Mr. Meilstrup continued, “Upon completion of the Cincinnati Bancorp acquisition, LCNB expects to have approximately $2.3 billion in total assets, $1.7 billion in loans and $1.8 billion in deposits. In addition, Cincinnati Bancorp expands our presence throughout the greater Cincinnati market and allows us to enter the Northern Kentucky market with one branch office. We believe the acquisition of Cincinnati Bancorp will enhance LCNB’s long-term profitability by providing our local, community-oriented financial services to more customers throughout Cincinnati and Northern Kentucky, leveraging Cincinnati Bancorp’s mortgage platform, and allowing us to offer Cincinnati Bancorp’s customers more financial products, including our Wealth Management solutions. We look forward to completing the acquisition in the coming weeks and welcoming Cincinnati Bancorp customers, employees, and shareholders to LCNB.”

Income Statement

Net income for the 2023 third quarter was $4,070,000, compared to $5,579,000 for the same period last year. Earnings per basic and diluted share for the 2023 third quarter were $0.37, compared to $0.49 for the same period last year. Net income for the nine-month period ended September 30, 2023 was $12,921,000, compared to $15,720,000 for the same period last year. Earnings per basic and diluted share for the nine-month period ended September 30, 2023 were $1.16, compared to $1.36 for the same period last year.

Adjusted net income for the 2023 third quarter was $4,309,000, or $0.40 per diluted share, compared to $5,579,000, or $0.49 per diluted share, for the same period last year. 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 nine-month period ended September 30, 2023 was $13,507,000, or $1.22 per diluted share, compared to $15,720,000, or $1.36 per diluted share, in the prior year period.

Net interest income for the three months ended September 30, 2023 was $13,571,000, compared to $15,444,000 for the comparable period in 2022. Net interest income for the nine-month period ended September 30, 2023 was $41,690,000, as compared to $44,834,000 in the same period last year. Contributing to the variances for both the three and nine-month periods were increases in the amount of long and short-term borrowings combined with higher interest expense associated with the rapid year-over-year increase in the Effective Federal Funds Rate. An increase in interest income from loans due to increases in the volume of average loans outstanding and the average rates earned on these loans partially offset the borrowings and deposit variances. For the 2023 third quarter, LCNB’s tax equivalent net interest margin was 3.04%, compared to 3.54% for the same period last year. For the 2023 nine-month period, LCNB’s tax equivalent net interest margin was 3.20%, compared to 3.48% for the same period last year.

Non-interest income for the three months ended September 30, 2023 was $3,578,000, compared to $3,581,000 for the same period last year. For the nine months ended September 30, 2023, non-interest income increased $146,000, or by 1.4%, to $10,805,000, compared to $10,659,000 for the same period last year. The increase in non-interest income for the nine-month period was primarily due to higher fiduciary income and a decrease in net losses recognized on equity securities, partially offset by decreased service charges and fees on deposit accounts and lower gains on sales of loans.

Non-interest expense for the three months ended September 30, 2023 was $106,000 less than the comparable period in 2022 primarily due to the absence of losses recognized on the sale of a decommissioned office building during the 2022 quarter, partially offset by $302,000 in one-time merger-related expenses recognized during the third quarter. For the nine months ended September 30, 2023, non-interest expense was $778,000 higher than the comparable period in 2022, partially due to $742,000 in merger-related expenses, partially offset by gains recognized on the sale of a decommissioned office building during the second quarter 2023 and the absence of losses recognized on the sale of two decommissioned office buildings during the 2022 period. In addition, non-interest expense for the 2022 nine-month period was lower than it otherwise would have been because of an $889,000 gain recognized during the second quarter 2022 from the sale of other real estate owned.

Capital Allocation

During the nine months ended September 30, 2023, 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 September 30, 2023, LCNB had 315,047 shares remaining under its February 2023 share repurchase program.

For the third quarter ended September 30, 2023, LCNB paid $0.21 per share in dividends, a 5.0% increase from $0.20 per share for the third quarter last year. Year-to-date, LCNB has paid $0.63 per share in dividends, compared to $0.60 per share for the nine-month period last year.

Balance Sheet

Total assets at September 30, 2023 increased 4.0% to a record $1.98 billion from $1.90 billion at September 30, 2022. Net loans at September 30, 2023 increased 5.8% to a record $1.45 billion, compared to $1.37 billion at September 30, 2022.

Total deposits at September 30, 2023 decreased 2.4% to $1.62 billion, compared to $1.66 billion at September 30, 2022. While LCNB continues to experience greater competition for deposit accounts, total deposits at September 30, 2023 increased 1.3% from June 30, 2023.

Assets Under Management

Total assets managed at September 30, 2023 were a record $3.23 billion, compared to $3.03 billion at September 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, partially offset by decreases in cash management accounts.

Asset Quality

For the 2023 third quarter, LCNB recorded a total net recovery of credit losses of $114,000, compared to a total net recovery of credit losses of $157,000 for the 2022 third quarter. For the nine months ended September 30, 2023, LCNB recorded a total net recovery of credit losses of $141,000, compared to a total provision for credit losses of $269,000 for the nine months ended September 30, 2022.

Net charge-offs for the 2023 third quarter were $33,000, or 0.01% of average loans, compared to net charge-offs of $32,000, or 0.01% of average loans, for the same period last year. For the 2023 nine-month period, net charge-offs were $82,000, or 0.01% of average loans, compared to net charge-offs of $131,000, or 0.01% of average loans, for the 2022 nine-month period.

Total nonperforming loans, which include non-accrual loans and loans past due 90 days or more and still accruing interest, decreased $204,000 from $465,000 or 0.03% of total loans at September 30, 2022, to $261,000 or 0.02% of total loans at September 30, 2023. Nonperforming assets to total assets was 0.01% at September 30, 2023, compared to 0.02% at September 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.

Pursuant to the terms of the merger agreement, which has been approved by the Board of Directors of each company, CNNB shareholders had 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. The transaction is anticipated to close in November 2023. Closure is subject to customary closing conditions as described in the merger agreement, including receipt of certain regulatory approvals.

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.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;

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.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;

11.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

12.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, the Tax Cuts and Jobs Act, 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 Ended										Nine Months Ended
	09-30-2023		06-30-2023		03-31-2023		12-31-2022		09-30-2022		09-30-2023	09-30-2022


Condensed Income Statement
Interest income	$	19,668	18,703		17,918		17,719		16,704		56,289	48,034
Interest expense	6,097		4,526		3,976		1,511		1,260		14,599	3,200
Net interest income	13,571		14,177		13,942		16,208		15,444		41,690	44,834
Provision for (recovery of) credit losses	(114)		30		(57)		(19)		(157)		(141)	269
Net interest income after provision for (recovery of) credit losses	13,685		14,147		13,999		16,227		15,601		41,831	44,565
Non-interest income	3,578		3,646		3,581		3,629		3,581		10,805	10,659
Non-interest expense	12,244		12,078		12,525		12,065		12,350		36,847	36,069
Income before income taxes	5,019		5,715		5,055		7,791		6,832		15,789	19,155
Provision for income taxes	949		1,021		898		1,383		1,253		2,868	3,435
Net income	$	4,070	$	4,694	$	4,157	$	6,408	5,579		12,921	15,720

Supplemental Income Statement Information
Amort/Accret income on acquired loans	$	—	—		75		249		144		75	271
Tax-equivalent net interest income	$	13,617	14,223		13,989		16,257		15,495		41,829	44,985

Per Share Data
Dividends per share	$	0.21	0.21		0.21		0.21		0.20		0.63	0.60
Basic earnings per common share	$	0.37	0.42		0.37		0.57		0.49		1.16	1.36
Diluted earnings per common share	$	0.37	0.42		0.37		0.57		0.49		1.16	1.36
Book value per share	$	18.10	18.20		18.22		17.82		17.31		18.10	17.31
Tangible book value per share	$	12.72	12.81		12.86		12.48		11.97		12.72	11.97
Weighted average common shares outstanding:
Basic	11,038,720		11,056,308		11,189,170		11,211,328		11,284,225		11,094,185	11,478,256
Diluted	11,038,720		11,056,308		11,189,170		11,211,328		11,284,225		11,094,185	11,478,256
Shares outstanding at period end	11,123,382		11,116,080		11,202,063		11,259,080		11,293,639		11,123,382	11,293,639

Selected Financial Ratios
Return on average assets	0.82%		0.98%		0.88%		1.34%		1.15%		0.89%	1.09%
Return on average equity	7.92%		9.22%		8.33%		12.90%		10.80%		8.49%	9.91%
Return on average tangible common equity	11.21%		13.07%		11.85%		18.59%		15.30%		12.04%	13.86%
Dividend payout ratio	56.76%		50.00%		56.76%		36.84%		40.82%		54.31%	44.12%
Net interest margin (tax equivalent)	3.04%		3.28%		3.28%		3.77%		3.54%		3.20%	3.48%
Efficiency ratio (tax equivalent)	71.21%		67.59%		71.29%		60.67%		64.74%		70.01%	64.82%

Selected Balance Sheet Items
Cash and cash equivalents	$	43,422	26,020		31,876		22,701		29,460
Debt and equity securities	309,094		314,763		328,194		323,167		325,801

Loans:
Commercial and industrial	$	125,751	127,553		124,240		120,236		114,694
Commercial, secured by real estate	981,787		961,173		932,208		938,022		908,130
Residential real estate	313,286		312,338		303,051		305,575		316,669
Consumer	27,018		29,007		28,611		28,290		29,451
Agricultural	11,278		9,955		7,523		10,054		8,630
Other, including deposit overdrafts	80		69		62		81		52
Deferred net origination fees	(796)		(844)		(865)		(980)		(937)
Loans, gross	1,458,404		1,439,251		1,394,830		1,401,278		1,376,689
Less allowance for credit losses on loans	7,932		7,956		7,858		5,646		5,644
Loans, net	$	1,450,472	$	1,431,295	$	1,386,972	$	1,395,632	$	1,371,045


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

Allowance for Credit Losses on Loans:
Allowance for credit losses, beginning of period	$	7,956		7,858		5,646		5,644		5,833
Cumulative change in accounting principle - ASC 326	—			—		2,196		—		—
Provision for (recovery of) credit losses	9			131		32		(19)		(157)
Losses charged off	(57)			(49)		(36)		(60)		(53)
Recoveries	24			16		20		81		21
Allowance for credit losses, end of period	$	7,932		7,956		7,858		5,646		5,644

Total earning assets	$	1,787,796		1,756,157		1,736,829		1,726,902		$	1,714,196
Total assets	1,981,668			1,950,763		1,924,808		1,919,398		1,904,975
Total deposits	1,616,890			1,596,709		1,603,881		1,604,970		1,657,370
Short-term borrowings	30,000			112,289		76,500		71,455		4,000
Long-term debt	112,641			18,122		18,598		19,072		24,539
Total shareholders’ equity	201,349			202,316		204,072		200,675		195,439
Equity to assets ratio	10.16		%	10.37	%	10.60	%	10.46	%	10.26		%
Loans to deposits ratio	90.20		%	90.14	%	86.97	%	87.31	%	83.06		%

Tangible common equity (TCE)	$	141,508		142,362		144,006		140,498		135,140
Tangible common assets (TCA)	1,921,827			1,890,809		1,864,742		1,859,221		1,844,676
TCE/TCA	7.36		%	7.53	%	7.72	%	7.56	%	7.33		%

Selected Average Balance Sheet Items
Cash and cash equivalents	$	36,177		30,742		35,712		24,330		$	35,763		$	34,234		$	32,393
Debt and equity securities	313,669			321,537		327,123		323,195		338,299			320,706			339,051

Loans	$	1,451,153		1,405,939		1,389,385		1,383,809		$	1,384,520		$	1,415,719		$	1,379,080
Less allowance for credit losses on loans	7,958			7,860		7,522		5,647		5,830			7,782			5,623
Net loans	$	1,443,195		1,398,079		1,381,863		1,378,162		$	1,378,690		$	1,407,937		$	1,373,457

Total earning assets	$	1,775,713		1,737,256		1,729,008		1,711,524		1,736,031			1,747,476			1,728,677
Total assets	1,971,269			1,927,956		1,922,031		1,903,626		1,929,155			1,940,591			1,919,804
Total deposits	1,610,508			1,604,346		1,583,857		1,637,201		1,669,932			1,599,668			1,657,401
Short-term borrowings	63,018			79,485		94,591		21,433		5,728			78,916			12,140
Long-term debt	72,550			18,514		18,983		23,855		24,920			36,878			15,907
Total shareholders’ equity	203,967			204,085		202,419		197,014		205,051			203,496			212,064
Equity to assets ratio	10.35		%	10.59	%	10.53	%	10.35	%	10.63		%	10.49		%	11.05		%
Loans to deposits ratio	90.11		%	87.63	%	87.72	%	84.52	%	82.91		%	88.50		%	83.21		%

Asset Quality
Net charge-offs (recoveries)	$	33		33		16		(21)		32			82			131
Other real estate owned	—			—		—		—		—			—			—

Non-accrual loans	$	85		451		701		391		465			85			465
Loans past due 90 days or more and still accruing	176			256		—		39		—			176			—
Total nonperforming loans	$	261		707		701		430		465			261			465

Net charge-offs (recoveries) to average loans	0.01		%	0.01	%	0.00	%	(0.01)	%	0.01		%	0.01		%	0.01		%
Allowance for credit losses on loans to total loans	0.54		%	0.55	%	0.56	%	0.40	%	0.41		%
Nonperforming loans to total loans	0.02		%	0.05	%	0.05	%	0.03	%	0.03		%
Nonperforming assets to total assets	0.01		%	0.04	%	0.04	%	0.02	%	0.02		%


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

Assets Under Management
LCNB Corp. total assets	$	1,981,668		1,950,763		1,924,808		1,919,398		1,904,975
Trust and investments (fair value)	731,342			744,149		716,578		678,366		611,409
Mortgage loans serviced	146,483			143,093		142,167		148,412		145,317
Cash management	2,445			2,668		1,831		1,925		53,199
Brokerage accounts (fair value)	368,854			384,889		374,066		347,737		314,144
Total assets managed	3,230,792			3,225,562		3,159,450		3,095,838		3,029,044

Reconciliation of Net Income Less Tax-Effected Merger-Related Costs
Net income	$	4,070		4,694		4,157		6,408		5,579		12,921		15,720
Merger-related costs	302			415		25		—		—		742		—
Tax effect	(63)			(88)		(5)		—		—		(156)		—
Adjusted net income	$	4,309		5,021		4,177		6,408		5,579		13,507		15,720

Adjusted basic and diluted earnings per share	$	0.40		0.45		0.37		0.57		0.49		1.22		1.36
Adjusted return on average assets	0.87		%	1.04	%	0.88	%	1.34	%	1.15	%	0.93	%	1.09	%
Adjusted return on average equity	8.38		%	9.87	%	8.37	%	12.90	%	10.79	%	8.87	%	9.91	%


	Three Months Ended September 30,												Three Months Ended June 30,
	2023						2022						2023
	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)	$	1,451,153		17,875	4.89	%	$	1,384,520		15,026	4.31	%	$	1,405,939		16,763	4.78	%

Interest-bearing demand deposits	10,891			152	5.54	%	13,212			80	2.40	%	9,780			144	5.91	%



Federal Reserve Bank stock	4,652			—	—	%	4,652			—	—	%	4,652			140	12.07	%
Federal Home Loan Bank stock	7,007			134	7.59	%	4,369			65	5.90	%	6,713			121	7.23	%
Investment securities:																	0
Equity securities	3,382			38	4.46	%	4,387			20	1.81	%	3,386			38	4.50	%
Debt securities, taxable	274,494			1,296	1.87	%	297,001			1,323	1.77	%	282,325			1,323	1.88	%
Debt securities, non-taxable (2)	24,134			219	3.60	%	27,890			241	3.43	%	24,461			220	3.61	%
Total earnings assets	1,775,713			19,714	4.40	%	1,736,031			16,755	3.83	%	1,737,256			18,749	4.33	%
Non-earning assets	203,514						198,954						198,560
Allowance for credit losses	(7,958)						(5,830)						(7,860)
Total assets	$	1,971,269					$	1,929,155					$	1,927,956

Interest-bearing demand and money market deposits	$	541,487		2,298	1.68	%	$	539,228		422	0.31	%	$	521,422		1,597	1.23	%
Savings deposits	379,515			129	0.13	%	453,420			159	0.14	%	395,367			134	0.14	%
IRA and time certificates	230,030			1,999	3.45	%	168,358			398	0.94	%	215,403			1,604	2.99	%
Short-term borrowings	63,018			830	5.23	%	5,728			71	4.92	%	79,485			1,008	5.09	%
Long-term debt	72,550			841	4.60	%	24,920			210	3.34	%	18,514			183	3.96	%
Total interest-bearing liabilities	1,286,600			6,097	1.88	%	1,191,654			1,260	0.42	%	1,230,191			4,526	1.48	%
Demand deposits	459,476						508,926						472,154
Other liabilities	21,226						23,524						21,526
Equity	203,967						205,051						204,085
Total liabilities and equity	$	1,971,269					$	1,929,155					$	1,927,956
Net interest rate spread (3)					2.52	%					3.41	%					2.85	%
Net interest income and net interest margin on a taxable-equivalent basis (4)				13,617	3.04	%				15,495	3.54	%				14,223	3.28	%
Ratio of interest-earning assets to interest-bearing liabilities	138.02		%				145.68		%				141.22		%


(1)			Includes non-accrual loans.
(2)			Income from tax-exempt securities is included in interest income on a taxable-equivalent basis. Interest income has been divided
(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 (Dollars in thousands)
	September 30, 2023 (Unaudited)		December 31, 2022
ASSETS:
Cash and due from banks	$	23,124	20,244
Interest-bearing demand deposits	20,298		2,457
Total cash and cash equivalents	43,422		22,701

Investment securities:
Equity securities with a readily determinable fair value, at fair value	1,254		2,273
Equity securities without a readily determinable fair value, at cost	2,099		2,099
Debt securities, available-for-sale, at fair value	274,500		289,850
Debt securities, held-to-maturity, at cost, net	19,006		19,878
Federal Reserve Bank stock, at cost	4,652		4,652
Federal Home Loan Bank stock, at cost	7,583		4,415
Loans, net	1,450,472		1,395,632
Premises and equipment, net	33,288		33,042
Operating lease right-of-use assets	6,093		6,525
Goodwill	59,221		59,221
Core deposit and other intangibles, net	1,351		1,827
Bank-owned life insurance	45,128		44,298
Interest receivable	8,087		7,482
Other assets, net	25,512		25,503
TOTAL ASSETS	$	1,981,668	1,919,398

LIABILITIES:
Deposits:
Noninterest-bearing	$	453,146	505,824
Interest-bearing	1,163,744		1,099,146
Total deposits	1,616,890		1,604,970
Short-term borrowings	30,000		71,455
Long-term debt	112,641		19,072
Operating lease liabilities	6,317		6,647
Accrued interest and other liabilities	14,471		16,579
TOTAL LIABILITIES	1,780,319		1,718,723

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 14,334,765 and 14,270,550 shares at September 30, 2023 and December 31, 2022, respectively; outstanding 11,123,382 and 11,259,080 shares at September 30, 2023 and December 31, 2022, respectively	144,865		144,069
Retained earnings	143,211		139,249
Treasury shares at cost, 3,211,383 and 3,011,470 shares at September 30, 2023 and December 31, 2022, respectively	(56,015)		(52,689)
Accumulated other comprehensive loss, net of taxes	(30,712)		(29,954)
TOTAL SHAREHOLDERS' EQUITY	201,349		200,675
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	1,981,668	$	1,919,398

Exhibit 99.2


LCNB CORP. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Dollars in thousands, except per share data) (Unaudited)
	Three Months Ended September 30,			Nine Months Ended September 30,
	2023		2022	2023	2022
INTEREST INCOME:
Interest and fees on loans	$	17,875	15,026	50,781	43,360
Dividends on equity securities:
With a readily determinable fair value	9		14	34	40
Without a readily determinable fair value	29		6	79	16
Interest on debt securities:
Taxable	1,296		1,323	3,962	3,672
Non-taxable	173		190	523	567
Other investments	286		145	910	379
TOTAL INTEREST INCOME	19,668		16,704	56,289	48,034

INTEREST EXPENSE:
Interest on deposits	4,426		979	10,217	2,493
Interest on short-term borrowings	830		71	3,142	320
Interest on long-term debt	841		210	1,240	387
TOTAL INTEREST EXPENSE	6,097		1,260	14,599	3,200
NET INTEREST INCOME	13,571		15,444	41,690	44,834

PROVISION FOR (RECOVERY OF) CREDIT LOSSES	(114)		(157)	(141)	269
NET INTEREST INCOME AFTER PROVISION FOR (RECOVERY OF) CREDIT LOSSES	13,685		15,601	41,831	44,565

NON-INTEREST INCOME:
Fiduciary income	1,736		1,513	5,263	4,851
Service charges and fees on deposit accounts	1,397		1,706	4,324	4,658

Bank-owned life insurance income	282		269	830	803
Gains from sales of loans	29		—	38	188
Other operating income	134		93	350	159
TOTAL NON-INTEREST INCOME	3,578		3,581	10,805	10,659

NON-INTEREST EXPENSE:
Salaries and employee benefits	7,044		7,062	21,454	21,291
Equipment expenses	397		398	1,175	1,234
Occupancy expense, net	805		790	2,367	2,300
State financial institutions tax	396		439	1,189	1,312
Marketing	223		215	735	845
Amortization of intangibles	113		113	336	365
FDIC insurance premiums, net	224		137	663	397
Contracted services	671		613	1,978	1,902
Other real estate owned, net	1		5	3	(874)
Merger-related expenses	302		—	742	—
Other non-interest expense	2,068		2,578	6,205	7,297
TOTAL NON-INTEREST EXPENSE	12,244		12,350	36,847	36,069
INCOME BEFORE INCOME TAXES	5,019		6,832	15,789	19,155
PROVISION FOR INCOME TAXES	949		1,253	2,868	3,435
NET INCOME	$	4,070	5,579	12,921	15,720

Earnings per common share:
Basic	0.37		0.49	1.16	1.36
Diluted	0.37		0.49	1.16	1.36


LCNB CORP. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Dollars in thousands, except per share data) (Unaudited)
	Three Months Ended September 30,		Nine Months Ended September 30,
	2023	2022	2023	2022
Weighted average common shares outstanding:
Basic	11,038,720	11,284,225	11,094,185	11,478,256
Diluted	11,038,720	11,284,225	11,094,185	11,478,256

Cover	9 Months Ended
Cover	Sep. 30, 2022
Document Information [Line Items]
Document Type	8-K
Document Period End Date	Oct. 23, 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