# LCNB Corp: Form 10-Q for the period ended Mar 31, 2026

- Company: [LCNB Corp](/companies/lcnb.md) (CIK 1074902)
- Form: 10-Q
- Filed: 2026-05-06
- Accepted by EDGAR: May 6, 2026, 16:04 ET
- Period: 2026-03-31
- Accession: 0001437749-26-015192
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/1074902/000143774926015192/lcnb20260331_10q.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/1074902/000143774926015192/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2026-03-31.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Income tax | 3 months, 2026-01-01 to 2026-03-31 | $877.0k | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2026-01-01 to 2026-03-31 | $4.4m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2026-01-01 to 2026-03-31 | $0.31 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2026-01-01 to 2026-03-31 | $0.31 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2026-01-01 to 2026-03-31 | 14,125,191 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 3 months, 2026-01-01 to 2026-03-31 | $3.1m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 3 months, 2026-01-01 to 2026-03-31 | $335.0k | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Dividends paid | 3 months, 2026-01-01 to 2026-03-31 | $3.1m | us-gaap:PaymentsOfDividendsCommonStock |
| Cash and equivalents | at 2026-03-31 | $29.2m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Total assets | at 2026-03-31 | $2.24bn | us-gaap:Assets |
| Total liabilities | at 2026-03-31 | $1.96bn | us-gaap:Liabilities |
| Long-term debt | at 2026-03-31 | $104.1m | us-gaap:LongTermDebt |
| Short-term borrowings | at 2026-03-31 | $0 | us-gaap:ShortTermBorrowings |
| Shareholders' equity | at 2026-03-31 | $275.8m | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 6,391 characters.

The following table presents the changes in taxable-equivalent basis interest income and expense for each major category of interest-earning assets and interest-bearing liabilities and the amount of change attributable to volume and rate changes for the three months ended March 31, 2026 as compared to the same period in 2025. Changes not solely attributable to rate or volume have been allocated to volume and rate changes in proportion to the relationship of absolute dollar amounts of the changes in each.

*(In thousands)*

| Interest-earning Assets: | Three Months Ended March 31, 2026 vs. 2025 Increase (decrease) attributable to: Volume | Rate | Total |
| --- | ---: | ---: | ---: |
| Loans | $(189) | 441 | 252 |
| Interest-bearing demand deposits | 8 | (31) | (23) |
| Interest-bearing time deposits | — | 25 | 25 |
| Federal Reserve Bank stock | — | (1) | (1) |
| Federal Home Loan Bank stock | — | (77) | (77) |
| Investment securities: |  |  |  |
| Equity securities | — | (2) | (2) |
| Debt securities, taxable | (123) | 63 | (60) |
| Debt securities, non-taxable | (12) | 12 | — |
| Total interest income | (316) | 430 | 114 |
| **Interest-bearing Liabilities:** |  |  |  |
| Interest-bearing demand and money market deposits | 424 | (296) | 128 |
| Savings deposits | (5) | 17 | 12 |
| IRA and time certificates | (1,344) | (1,074) | (2,418) |
| Short-term borrowings | 45 | — | 45 |
| Long-term debt | (273) | 72 | (201) |
| Total interest expense | (1,153) | (1,281) | (2,434) |
| Net interest income | $837 | 1,711 | 2,548 |

Net interest income on a fully taxable-equivalent basis for the three months ended March 31, 2026 totaled $18.9 million, an increase of $2.6 million from the comparable period in 2025. Total interest expense decreased $2.4 million, with interest income increasing $114 thousand.

The $114 thousand increase in total interest income was primarily due to a 10 basis point (a basis point equals 0.01%) increase in the average rate earned on the loan portfolio, partially offset by a $13.9 million decrease in average loan balances.

The $2.4 million decrease in total interest expense was primarily due to a $154.1 million decrease in average IRA and time certificate deposits and to a 102 basis point decrease in the average rate paid for these deposits.

### Provision and Allowance For Credit Losses

LCNB continuously reviews the loan portfolio for credit risk through the use of its lending and loan review functions. Independent loan reviews analyze specific loans, providing validation that credit risks are appropriately identified, graded, and reported to the Loan Committee, Board of Directors, and the Audit Committee. New credits meeting specific criteria are analyzed prior to origination and are reviewed by the Loan Committee and the Board of Directors.

The total provision for credit losses is determined based upon management's evaluation as to the amount needed to maintain the allowance for credit losses at a level considered appropriate in relation to the risk of losses inherent in the portfolio. For analysis purposes, the loan portfolio is separated into pools of similar loans. These pools include commercial and industrial loans, owner occupied commercial real estate loans, non-owner occupied commercial real estate loans, real estate loans secured by farms, real estate loans secured by multi-family dwellings, residential real estate loans secured by senior liens on 1-4 family dwellings, residential real estate loans secured by junior liens on 1-4 family dwellings, home equity line of credit loans, consumer loans, loans for agricultural purposes not secured by real estate, construction loans secured by 1-4 family dwellings, construction loans secured by other real estate, and several smaller classifications. Within each pool of loans, LCNB examines a variety of factors to determine the adequacy of the allowance for credit losses, including historic charge-off percentages, overall pool quality, a review of specific problem loans, current economic trends and conditions that may affect borrowers' ability to pay, and the nature, volume, and consistency of the loan pool. Calculating an appropriate level for the allowance and provision for credit losses involves a high degree of management judgment and is, by its nature, imprecise. Revisions may be necessary as more information becomes available or if market conditions change.

LCNB recorded a provision for credit losses of $2.3 million for the first quarter of 2026, compared to $197 thousand for the comparable period in 2025. The provision for the 2026 period included a provision for credit losses on loans of $2.4 million and a recovery on off-balance-sheet credit exposures of $59 thousand. The provision for the 2025 period included a provision for credit losses on loans of $162 thousand and a provision for off-balance-sheet credit exposures of $34 thousand. The provision expense for the first quarter of 2026 was primarily driven by specific reserves related to three participated loans. One logistics-related loan was reserved for and charged‑off during the quarter and specific reserves were included on two commercial and industrial loans in other industries impacted by continued global trade uncertainty and geopolitical conditions. The loan portfolio's overall asset quality remains strong, with nonperforming loans to total loans of 0.19% at March 31, 2026, compared to 0.28% at March 31, 2025.

Net charge-offs for the three months ended March 31, 2026 totaled $2.7 million, compared to net charge-offs of $39 thousand for the same period in 2025. Net charge‑offs during the first quarter of 2026 primarily reflected the resolution of participation loans to two unrelated borrowers within the logistics sector. Loans to one of the borrowers, which carried a specific reserve of approximately $1.4 million at December 31, 2025, was charged off during the quarter with no additional impact to earnings, consistent with LCNB's prior disclosures. In addition, LCNB recognized an additional charge‑off during the first quarter 2026 of approximately $1.3 million related to a separate logistics‑sector borrower after significant adverse developments arose subsequent to year‑end, including the withdrawal of the borrower’s sponsor from restructuring discussions and the acceptance by the lending group of a discounted debt‑repurchase proposal.

## Market risk

As filed, 3,543 characters.

Market risk for LCNB is primarily due to interest rate risk. LCNB attempts to mitigate this risk through asset/liability management strategies designed to decrease the vulnerability of its earnings to material and prolonged changes in interest rates. LCNB does not use derivatives such as interest rate swaps, caps, or floors to hedge this risk. LCNB has not entered into any market risk instruments for trading purposes.

The Bank's Asset and Liability Management Committee primarily uses a combination of Interest Rate Sensitivity Analysis ("IRSA") and Economic Value of Equity ("EVE") analysis for measuring and managing interest rate risk. IRSA is used to estimate the effect on net interest income ("NII") during a one-year period of instantaneous and sustained movements in interest rates, also called interest rate shocks, of 100, 200, and 300 basis points. The annual base projection uses a current interest rate scenario. As shown below, the March 31, 2026 IRSA indicates that either an increase or a decrease in interest rates would have a positive effect on NII. The changes in NII for all rate shock scenarios are within LCNB's acceptable ranges.

*(Dollars in thousands)*

| Rate Shock Scenario in Basis Points | Amount | $ Change in NII | % Change in NII | Limits |
| --- | ---: | ---: | ---: | ---: |
| Up 300 | $78,516 | 1,407 | 1.82% | 15% |
| Up 200 | 78,404 | 1,294 | 1.68% | 10% |
| Up 100 | 78,433 | 1,324 | 1.72% | 5% |
| Base | 77,109 | — | —% | 0% |
| Down 100 | 77,800 | 690 | 0.90% | 5% |
| Down 200 | 77,728 | 619 | 0.80% | 10% |
| Down 300 | 78,269 | 1,160 | 1.50% | 15% |

The IRSA shows the effect on NII during a one-year period only. A longer-range model is the EVE analysis, which shows, accounting for the same rate shocks, the estimated present value of future cash inflows from interest-earning assets less the present value of future cash outflows for interest-bearing liabilities for the same rate shocks. As shown below, the March 31, 2026 EVE analysis indicates that an increase in interest rates will have a negative effect on the EVE and a decrease in interest rates will have a positive effect. The changes in EVE for all upward rate shock scenarios and the down 100 BP rate shock scenario are within LCNB's acceptable ranges. The down 200 BP and down 300 BP scenarios are slightly outside of LCNB's acceptable ranges,

*(Dollars in thousands)*

| Rate Shock Scenario in Basis Points | Amount | $ Change in EVE | % Change in EVE | Limits |
| --- | ---: | ---: | ---: | ---: |
| Up 300 | $277,504 | (77,608) | (21.86)% | 25% |
| Up 200 | 305,199 | (49,913) | (14.01)% | 20% |
| Up 100 | 333,656 | (21,456) | (6.04)% | 15% |
| Base | 355,112 | — | —% | —% |
| Down 100 | 389,849 | 34,737 | 9.78% | 15% |
| Down 200 | 430,676 | 75,564 | 21.28% | 20% |
| Down 300 | 444,347 | 89,235 | 25.13% | 25% |

The IRSA and EVE simulations discussed above are not projections of future income or equity and should not be relied on as being indicative of future operating results. Assumptions used, including the nature and timing of interest rate levels, yield curve conditions, prepayments on loans and securities, deposit decay rates, pricing decisions on loans and deposits, and reinvestment or replacement of asset and liability cash flows, are inherently uncertain and, as a result, the models cannot precisely measure future NII or equity. Furthermore, the models do not reflect actions that borrowers, depositors, and management may take in response to changing economic conditions and interest rate levels.

## Controls and procedures

As filed, 1,218 characters.

a) **Disclosure controls and procedures.** The Chief Executive Officer and the Chief Financial Officer have carried out an evaluation of the effectiveness of LCNB's disclosure controls and procedures that ensure that information relating to LCNB required to be disclosed by LCNB in the reports that it files or submits under the Securities and Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms and that such information is accumulated and communicated to LCNB's management, including its principal executive officer and principal financial officer, as appropriate, in order to allow timely decisions to be made regarding required disclosures. Based upon this evaluation, these officers have concluded that, as of March 31, 2026, LCNB's disclosure controls and procedures were effective.

b) **Changes in internal control over financial reporting.** During the period covered by this report, there were no changes in LCNB's internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, LCNB's internal control over financial reporting.

## Risk factors

As filed, 162 characters.

Readers should carefully consider the risk factors previously disclosed in Part I, Item 1A. Risk Factors in LCNB's Form 10-K for the year ended December 31, 2025.

Filed May 6, 2026.
Source: SEC EDGAR, the filing index for accession 0001437749-26-015192. Last ingested by Listed: Nov 4, 2026, 17:51 ET. No prices; not investment advice.