LCNB CORP (LCNB) SEC Filings & Earnings Calls

Asset quality deterioration: Nonperforming loans doubled year-over-year, indicating potential credit stress.

“Nonperforming loans to total loans 0.24% ... 0.12%” · word for word

Change in control agreements create potential severance liabilities upon qualifying termination, but no immediate financial impact.

“CIC Agreements provide for lump-sum payments of 150% to 250% of base compensation plus COBRA coverage.”

Subordinated notes are unsecured and subordinated to senior debt; interest rate resets to SOFR+234bps after 5 years, introducing floating rate risk.

“The Subordinated Notes are unsecured, subordinated obligations... rank junior in right to payment to the Company’s current and future senior indebtedness... interest rate will reset quarterly to an interest rate per annum equal to the then-current three-month Secured Overnight Financing Rate plus 234 basis points.” · word for word

Credit Deterioration in Commercial & Industrial Portfolio

“Provision for credit losses increased to $2,615 for the six months ended June 30, 2026 from $215 for the same period in 2025.”

Deposit Outflows

“Net increase (decrease) in customer deposits was ($21,169) for the six months ended June 30, 2026.”

Deposits declined slightly YoY ($1.819B vs $1.919B)

“Total deposits $1,819,186 ... $1,919,372”

Nonperforming assets ratio increased slightly to 0.26% from 0.21% YoY

“Nonperforming assets to total assets 0.26% ... 0.21%” · word for word

Credit Deterioration in Commercial & Industrial Portfolio

“Provision for credit losses for the three months ended March 31, 2026 was $2,339, compared to $197 for the same period in 2025.”

Deposit Outflows

“Net increase (decrease) in customer deposits was ($1,562) for the three months ended March 31, 2026.”

Credit quality deterioration: significant increase in provision for credit losses and net charge-offs, particularly in commercial real estate.

“Provision for credit losses $2,339 thousand vs $197 thousand YoY; Net charge-offs $2,730 thousand vs $39 thousand YoY”

Deposit outflows: total deposits decreased 4.3% YoY, potentially indicating competitive pressure or customer attrition.

“Total deposits $1,838,793 thousand at 3/31/2026 vs $1,921,649 thousand at 3/31/2025”

Loan Portfolio Contraction

“The decrease in total interest income was due primarily to a $2.2 million decrease in interest income from loans due to a $60.2 million decrease in average loans.” · word for word

Provision for credit losses increased to $1.51M in Q4 2025 from $0.649M in Q4 2024, though net charge-offs remained minimal.

“Provision for credit losses $1,510 for Q4 2025 vs $649 for Q4 2024.”

Loan portfolio contraction

“Loans, net, decreased primarily due to timing of borrower payoffs and efforts to rebalance the composition of the portfolio.” · word for word

Interest rate risk

“The IRSA indicates that an increase in interest rates would have a negative effect on NII, while a decrease in interest rates would have a positive effect on NII.”

Commercial real estate concentration

“Commercial real estate is the largest classification in LCNB's loan portfolio, comprising about 65% of total loans at September 30, 2025.” · word for word

Geographic concentration

“Most of LCNB's commercial real estate loans are made within its general market area of Southwest and Central Ohio and Northern Kentucky.” · word for word

Deposit outflow risk

“Total deposits decreased from $1,878,292 thousand to $1,849,082 thousand.”