10-Q 1 lcnb-20230930.htm 10-Q lcnb-20230930
000107490212-312023Q3FALSEP1YP5YP1YP1YP5YP1Y00010749022023-01-012023-09-3000010749022023-11-07xbrli:shares00010749022023-09-30iso4217:USD00010749022022-12-31iso4217:USDxbrli:shares00010749022023-07-012023-09-3000010749022022-07-012022-09-3000010749022022-01-012022-09-300001074902us-gaap:FiduciaryAndTrustMember2023-07-012023-09-300001074902us-gaap:FiduciaryAndTrustMember2022-07-012022-09-300001074902us-gaap:FiduciaryAndTrustMember2023-01-012023-09-300001074902us-gaap:FiduciaryAndTrustMember2022-01-012022-09-300001074902us-gaap:DepositAccountMember2023-07-012023-09-300001074902us-gaap:DepositAccountMember2022-07-012022-09-300001074902us-gaap:DepositAccountMember2023-01-012023-09-300001074902us-gaap:DepositAccountMember2022-01-012022-09-300001074902us-gaap:CommonStockMember2023-06-300001074902us-gaap:RetainedEarningsMember2023-06-300001074902us-gaap:TreasuryStockCommonMember2023-06-300001074902us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-06-3000010749022023-06-300001074902us-gaap:RetainedEarningsMember2023-07-012023-09-300001074902us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-012023-09-300001074902us-gaap:CommonStockMember2023-07-012023-09-300001074902us-gaap:CommonStockMember2023-09-300001074902us-gaap:RetainedEarningsMember2023-09-300001074902us-gaap:TreasuryStockCommonMember2023-09-300001074902us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-09-300001074902us-gaap:CommonStockMember2022-12-310001074902us-gaap:RetainedEarningsMember2022-12-310001074902us-gaap:TreasuryStockCommonMember2022-12-310001074902us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310001074902us-gaap:RetainedEarningsMemberus-gaap:AccountingStandardsUpdate201613Member2022-12-310001074902us-gaap:AccountingStandardsUpdate201613Member2022-12-310001074902us-gaap:CommonStockMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-12-310001074902us-gaap:RetainedEarningsMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-12-310001074902us-gaap:TreasuryStockCommonMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-12-310001074902us-gaap:AccumulatedOtherComprehensiveIncomeMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-12-310001074902srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-12-310001074902us-gaap:RetainedEarningsMember2023-01-012023-09-300001074902us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-09-300001074902us-gaap:CommonStockMember2023-01-012023-09-300001074902us-gaap:TreasuryStockCommonMember2023-01-012023-09-300001074902us-gaap:CommonStockMember2022-06-300001074902us-gaap:RetainedEarningsMember2022-06-300001074902us-gaap:TreasuryStockCommonMember2022-06-300001074902us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-3000010749022022-06-300001074902us-gaap:RetainedEarningsMember2022-07-012022-09-300001074902us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300001074902us-gaap:CommonStockMember2022-07-012022-09-300001074902us-gaap:CommonStockMember2022-09-300001074902us-gaap:RetainedEarningsMember2022-09-300001074902us-gaap:TreasuryStockCommonMember2022-09-300001074902us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-09-3000010749022022-09-300001074902us-gaap:CommonStockMember2021-12-310001074902us-gaap:RetainedEarningsMember2021-12-310001074902us-gaap:TreasuryStockCommonMember2021-12-310001074902us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-3100010749022021-12-310001074902us-gaap:RetainedEarningsMember2022-01-012022-09-300001074902us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-09-300001074902us-gaap:CommonStockMember2022-01-012022-09-300001074902us-gaap:TreasuryStockCommonMember2022-01-012022-09-300001074902us-gaap:AccountingStandardsUpdate201613Membersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-12-310001074902srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMemberus-gaap:AccountingStandardsUpdate201613Member2022-12-310001074902lcnb:CincinnatiBancorpIncMember2023-09-30lcnb:branch0001074902lcnb:CincinnatiBancorpIncMember2023-01-012023-09-30xbrli:pure0001074902lcnb:CincinnatiBancorpIncMember2023-06-300001074902lcnb:CincinnatiBancorpIncMemberstpr:OH2023-01-012023-09-300001074902lcnb:CincinnatiBancorpIncMemberlcnb:NorthernKentuckyMember2023-01-012023-09-300001074902us-gaap:USTreasurySecuritiesMember2023-09-300001074902us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember2023-09-300001074902us-gaap:CorporateDebtSecuritiesMember2023-09-300001074902us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2023-09-300001074902us-gaap:NontaxableMunicipalBondsMember2023-09-300001074902us-gaap:TaxableMunicipalBondsMember2023-09-300001074902us-gaap:USTreasurySecuritiesMember2022-12-310001074902us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember2022-12-310001074902us-gaap:CorporateDebtSecuritiesMember2022-12-310001074902us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2022-12-310001074902us-gaap:NontaxableMunicipalBondsMember2022-12-310001074902us-gaap:TaxableMunicipalBondsMember2022-12-310001074902us-gaap:USGovernmentDebtSecuritiesMember2023-09-300001074902us-gaap:USGovernmentDebtSecuritiesMember2022-12-310001074902us-gaap:AssetPledgedAsCollateralMember2023-09-300001074902us-gaap:AssetPledgedAsCollateralMember2022-12-310001074902us-gaap:MutualFundMember2023-09-300001074902us-gaap:MutualFundMember2022-12-310001074902us-gaap:EquitySecuritiesMember2023-09-300001074902us-gaap:EquitySecuritiesMember2022-12-310001074902us-gaap:CommercialPortfolioSegmentMember2023-09-300001074902us-gaap:CommercialPortfolioSegmentMember2022-12-310001074902lcnb:CommercialRealEstateOwnerOccupiedClassSegmentMember2023-09-300001074902lcnb:CommercialRealEstateOwnerOccupiedClassSegmentMember2022-12-310001074902lcnb:CommercialRealEstateNonOwnerOccupiedClassSegmentMember2023-09-300001074902lcnb:CommercialRealEstateNonOwnerOccupiedClassSegmentMember2022-12-310001074902lcnb:CommercialRealEstateFarmlandClassSegmentMember2023-09-300001074902lcnb:CommercialRealEstateFarmlandClassSegmentMember2022-12-310001074902lcnb:CommercialRealEstateMultifamilyPropertiesClassSegmentMember2023-09-300001074902lcnb:CommercialRealEstateMultifamilyPropertiesClassSegmentMember2022-12-310001074902lcnb:CommercialRealEstateConstructionLoans14FamilyClassSegmentMember2023-09-300001074902lcnb:CommercialRealEstateConstructionLoans14FamilyClassSegmentMember2022-12-310001074902lcnb:CommercialRealEstateConstructionLoansOtherClassSegmentMember2023-09-300001074902lcnb:CommercialRealEstateConstructionLoansOtherClassSegmentMember2022-12-310001074902lcnb:ResidentialRealEstate14FamilyClosedEndSeniorLiensClassSegmentMember2023-09-300001074902lcnb:ResidentialRealEstate14FamilyClosedEndSeniorLiensClassSegmentMember2022-12-310001074902lcnb:ResidentialRealEstate14FamilyClosedEndJuniorLiensClassSegmentMember2023-09-300001074902lcnb:ResidentialRealEstate14FamilyClosedEndJuniorLiensClassSegmentMember2022-12-310001074902lcnb:ResidentialRealEstate14FamilyRevolvingAndOpenEndClassSegmentMember2023-09-300001074902lcnb:ResidentialRealEstate14FamilyRevolvingAndOpenEndClassSegmentMember2022-12-310001074902us-gaap:ConsumerPortfolioSegmentMember2023-09-300001074902us-gaap:ConsumerPortfolioSegmentMember2022-12-310001074902lcnb:AgriculturalMember2023-09-300001074902lcnb:AgriculturalMember2022-12-310001074902us-gaap:UnallocatedFinancingReceivablesMember2023-09-300001074902us-gaap:UnallocatedFinancingReceivablesMember2022-12-310001074902us-gaap:CommercialPortfolioSegmentMember2023-01-012023-09-300001074902us-gaap:CommercialPortfolioSegmentMember2022-01-012022-12-310001074902lcnb:CommericialRealEstateOwnerOccupiedClassSegmentMember2023-09-300001074902lcnb:CommericialRealEstateOwnerOccupiedClassSegmentMember2023-01-012023-09-300001074902lcnb:CommericialRealEstateOwnerOccupiedClassSegmentMember2022-12-310001074902lcnb:CommericialRealEstateOwnerOccupiedClassSegmentMember2022-01-012022-12-310001074902lcnb:CommercialRealEstateNonOwnerOccupiedClassSegmentMember2023-01-012023-09-300001074902lcnb:CommercialRealEstateNonOwnerOccupiedClassSegmentMember2022-01-012022-12-310001074902lcnb:CommercialRealEstateFarmlandClassSegmentMember2023-01-012023-09-300001074902lcnb:CommercialRealEstateFarmlandClassSegmentMember2022-01-012022-12-310001074902lcnb:CommercialRealEstateMultifamilyPropertiesClassSegmentMember2023-01-012023-09-300001074902lcnb:CommercialRealEstateMultifamilyPropertiesClassSegmentMember2022-01-012022-12-310001074902lcnb:CommercialRealEstateConstructionLoans14FamilyClassSegmentMember2023-01-012023-09-300001074902lcnb:CommercialRealEstateConstructionLoans14FamilyClassSegmentMember2022-01-012022-12-310001074902lcnb:CommercialRealEstateConstructionLoansOtherClassSegmentMember2023-01-012023-09-300001074902lcnb:CommercialRealEstateConstructionLoansOtherClassSegmentMember2022-01-012022-12-310001074902lcnb:ResidentialRealEstate14FamilyClosedEndSeniorLiensClassSegmentMember2023-01-012023-09-300001074902lcnb:ResidentialRealEstate14FamilyClosedEndSeniorLiensClassSegmentMember2022-01-012022-12-310001074902lcnb:ResidentialRealEstate14FamilyClosedEndJuniorLiensClassSegmentMember2023-01-012023-09-300001074902lcnb:ResidentialRealEstate14FamilyClosedEndJuniorLiensClassSegmentMember2022-01-012022-12-310001074902lcnb:ResidentialRealEstate14FamilyRevolvingAndOpenEndClassSegmentMember2023-01-012023-09-300001074902lcnb:ResidentialRealEstate14FamilyRevolvingAndOpenEndClassSegmentMember2022-01-012022-12-310001074902us-gaap:ConsumerPortfolioSegmentMember2023-01-012023-09-300001074902us-gaap:ConsumerPortfolioSegmentMember2022-01-012022-12-310001074902lcnb:AgriculturalMember2023-01-012023-09-300001074902lcnb:AgriculturalMember2022-01-012022-12-3100010749022022-01-012022-12-310001074902us-gaap:ResidentialPortfolioSegmentMember2023-01-012023-09-300001074902us-gaap:CommercialPortfolioSegmentMember2023-06-300001074902us-gaap:CommercialRealEstatePortfolioSegmentMember2023-06-300001074902us-gaap:ResidentialPortfolioSegmentMember2023-06-300001074902us-gaap:ConsumerPortfolioSegmentMember2023-06-300001074902lcnb:AgriculturalMember2023-06-300001074902us-gaap:UnallocatedFinancingReceivablesMember2023-06-300001074902us-gaap:CommercialPortfolioSegmentMember2023-07-012023-09-300001074902us-gaap:CommercialRealEstatePortfolioSegmentMember2023-07-012023-09-300001074902us-gaap:ResidentialPortfolioSegmentMember2023-07-012023-09-300001074902us-gaap:ConsumerPortfolioSegmentMember2023-07-012023-09-300001074902lcnb:AgriculturalMember2023-07-012023-09-300001074902us-gaap:UnallocatedFinancingReceivablesMember2023-07-012023-09-300001074902us-gaap:CommercialRealEstatePortfolioSegmentMember2023-09-300001074902us-gaap:ResidentialPortfolioSegmentMember2023-09-300001074902us-gaap:CommercialRealEstatePortfolioSegmentMember2022-12-310001074902us-gaap:ResidentialPortfolioSegmentMember2022-12-310001074902us-gaap:CommercialPortfolioSegmentMemberus-gaap:AccountingStandardsUpdate201613Member2022-12-310001074902us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:AccountingStandardsUpdate201613Member2022-12-310001074902us-gaap:ResidentialPortfolioSegmentMemberus-gaap:AccountingStandardsUpdate201613Member2022-12-310001074902us-gaap:AccountingStandardsUpdate201613Memberus-gaap:ConsumerPortfolioSegmentMember2022-12-310001074902us-gaap:AccountingStandardsUpdate201613Memberlcnb:AgriculturalMember2022-12-310001074902us-gaap:UnallocatedFinancingReceivablesMemberus-gaap:AccountingStandardsUpdate201613Member2022-12-310001074902us-gaap:CommercialRealEstatePortfolioSegmentMember2023-01-012023-09-300001074902us-gaap:UnallocatedFinancingReceivablesMember2023-01-012023-09-300001074902us-gaap:CommercialPortfolioSegmentMember2022-06-300001074902us-gaap:CommercialRealEstatePortfolioSegmentMember2022-06-300001074902us-gaap:ResidentialPortfolioSegmentMember2022-06-300001074902us-gaap:ConsumerPortfolioSegmentMember2022-06-300001074902lcnb:AgriculturalMember2022-06-300001074902us-gaap:UnallocatedFinancingReceivablesMember2022-06-300001074902us-gaap:CommercialPortfolioSegmentMember2022-07-012022-09-300001074902us-gaap:CommercialRealEstatePortfolioSegmentMember2022-07-012022-09-300001074902us-gaap:ResidentialPortfolioSegmentMember2022-07-012022-09-300001074902us-gaap:ConsumerPortfolioSegmentMember2022-07-012022-09-300001074902lcnb:AgriculturalMember2022-07-012022-09-300001074902us-gaap:UnallocatedFinancingReceivablesMember2022-07-012022-09-300001074902us-gaap:CommercialPortfolioSegmentMember2022-09-300001074902us-gaap:CommercialRealEstatePortfolioSegmentMember2022-09-300001074902us-gaap:ResidentialPortfolioSegmentMember2022-09-300001074902us-gaap:ConsumerPortfolioSegmentMember2022-09-300001074902lcnb:AgriculturalMember2022-09-300001074902us-gaap:UnallocatedFinancingReceivablesMember2022-09-300001074902us-gaap:CommercialPortfolioSegmentMember2021-12-310001074902us-gaap:CommercialRealEstatePortfolioSegmentMember2021-12-310001074902us-gaap:ResidentialPortfolioSegmentMember2021-12-310001074902us-gaap:ConsumerPortfolioSegmentMember2021-12-310001074902lcnb:AgriculturalMember2021-12-310001074902us-gaap:UnallocatedFinancingReceivablesMember2021-12-310001074902us-gaap:CommercialPortfolioSegmentMember2022-01-012022-09-300001074902us-gaap:CommercialRealEstatePortfolioSegmentMember2022-01-012022-09-300001074902us-gaap:ResidentialPortfolioSegmentMember2022-01-012022-09-300001074902us-gaap:ConsumerPortfolioSegmentMember2022-01-012022-09-300001074902lcnb:AgriculturalMember2022-01-012022-09-300001074902us-gaap:UnallocatedFinancingReceivablesMember2022-01-012022-09-300001074902us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember2022-12-310001074902us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember2022-12-310001074902us-gaap:ResidentialPortfolioSegmentMemberus-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember2022-12-310001074902us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMemberus-gaap:ConsumerPortfolioSegmentMember2022-12-310001074902lcnb:AgriculturalMemberus-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember2022-12-310001074902us-gaap:UnallocatedFinancingReceivablesMemberus-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember2022-12-310001074902us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember2022-12-310001074902us-gaap:CommercialPortfolioSegmentMembersrt:MinimumMember2023-01-012023-09-300001074902us-gaap:CommercialPortfolioSegmentMembersrt:MaximumMember2023-01-012023-09-300001074902lcnb:PaycheckProtectionProgramLoansMember2023-09-300001074902lcnb:PaycheckProtectionProgramLoansMember2022-12-310001074902us-gaap:CommercialRealEstatePortfolioSegmentMembersrt:MinimumMember2023-01-012023-09-300001074902srt:MaximumMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2023-01-012023-09-300001074902us-gaap:ResidentialPortfolioSegmentMembersrt:MinimumMember2023-01-012023-09-300001074902us-gaap:ResidentialPortfolioSegmentMembersrt:MaximumMember2023-01-012023-09-300001074902srt:MaximumMemberus-gaap:ConsumerPortfolioSegmentMember2023-01-012023-09-300001074902us-gaap:CommercialPortfolioSegmentMemberus-gaap:PassMember2023-09-300001074902us-gaap:SpecialMentionMemberus-gaap:CommercialPortfolioSegmentMember2023-09-300001074902us-gaap:CommercialPortfolioSegmentMemberus-gaap:SubstandardMember2023-09-300001074902us-gaap:CommercialPortfolioSegmentMemberus-gaap:DoubtfulMember2023-09-300001074902us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:PassMember2023-09-300001074902us-gaap:SpecialMentionMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2023-09-300001074902us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:SubstandardMember2023-09-300001074902us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:DoubtfulMember2023-09-300001074902us-gaap:ResidentialPortfolioSegmentMemberus-gaap:PassMember2023-09-300001074902us-gaap:ResidentialPortfolioSegmentMemberus-gaap:SpecialMentionMember2023-09-300001074902us-gaap:ResidentialPortfolioSegmentMemberus-gaap:SubstandardMember2023-09-300001074902us-gaap:ResidentialPortfolioSegmentMemberus-gaap:DoubtfulMember2023-09-300001074902us-gaap:PassMemberus-gaap:ConsumerPortfolioSegmentMember2023-09-300001074902us-gaap:SpecialMentionMemberus-gaap:ConsumerPortfolioSegmentMember2023-09-300001074902us-gaap:SubstandardMemberus-gaap:ConsumerPortfolioSegmentMember2023-09-300001074902us-gaap:ConsumerPortfolioSegmentMemberus-gaap:DoubtfulMember2023-09-300001074902us-gaap:PassMemberlcnb:AgriculturalMember2023-09-300001074902us-gaap:SpecialMentionMemberlcnb:AgriculturalMember2023-09-300001074902us-gaap:SubstandardMemberlcnb:AgriculturalMember2023-09-300001074902lcnb:AgriculturalMemberus-gaap:DoubtfulMember2023-09-300001074902us-gaap:UnallocatedFinancingReceivablesMemberus-gaap:PassMember2023-09-300001074902us-gaap:SpecialMentionMemberus-gaap:UnallocatedFinancingReceivablesMember2023-09-300001074902us-gaap:UnallocatedFinancingReceivablesMemberus-gaap:SubstandardMember2023-09-300001074902us-gaap:UnallocatedFinancingReceivablesMemberus-gaap:DoubtfulMember2023-09-300001074902us-gaap:PassMember2023-09-300001074902us-gaap:SpecialMentionMember2023-09-300001074902us-gaap:SubstandardMember2023-09-300001074902us-gaap:DoubtfulMember2023-09-300001074902us-gaap:CommercialPortfolioSegmentMemberus-gaap:PassMember2022-12-310001074902us-gaap:SpecialMentionMemberus-gaap:CommercialPortfolioSegmentMember2022-12-310001074902us-gaap:CommercialPortfolioSegmentMemberus-gaap:SubstandardMember2022-12-310001074902us-gaap:CommercialPortfolioSegmentMemberus-gaap:DoubtfulMember2022-12-310001074902us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:PassMember2022-12-310001074902us-gaap:SpecialMentionMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-12-310001074902us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:SubstandardMember2022-12-310001074902us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:DoubtfulMember2022-12-310001074902us-gaap:CommercialRealEstatePortfolioSegmentMember2022-01-012022-12-310001074902us-gaap:ResidentialPortfolioSegmentMemberus-gaap:PassMember2022-12-310001074902us-gaap:ResidentialPortfolioSegmentMemberus-gaap:SpecialMentionMember2022-12-310001074902us-gaap:ResidentialPortfolioSegmentMemberus-gaap:SubstandardMember2022-12-310001074902us-gaap:ResidentialPortfolioSegmentMemberus-gaap:DoubtfulMember2022-12-310001074902us-gaap:ResidentialPortfolioSegmentMember2022-01-012022-12-310001074902us-gaap:PassMemberus-gaap:ConsumerPortfolioSegmentMember2022-12-310001074902us-gaap:SpecialMentionMemberus-gaap:ConsumerPortfolioSegmentMember2022-12-310001074902us-gaap:SubstandardMemberus-gaap:ConsumerPortfolioSegmentMember2022-12-310001074902us-gaap:ConsumerPortfolioSegmentMemberus-gaap:DoubtfulMember2022-12-310001074902us-gaap:PassMemberlcnb:AgriculturalMember2022-12-310001074902us-gaap:SpecialMentionMemberlcnb:AgriculturalMember2022-12-310001074902us-gaap:SubstandardMemberlcnb:AgriculturalMember2022-12-310001074902lcnb:AgriculturalMemberus-gaap:DoubtfulMember2022-12-310001074902us-gaap:UnallocatedFinancingReceivablesMemberus-gaap:PassMember2022-12-310001074902us-gaap:SpecialMentionMemberus-gaap:UnallocatedFinancingReceivablesMember2022-12-310001074902us-gaap:UnallocatedFinancingReceivablesMemberus-gaap:SubstandardMember2022-12-310001074902us-gaap:UnallocatedFinancingReceivablesMemberus-gaap:DoubtfulMember2022-12-310001074902us-gaap:UnallocatedFinancingReceivablesMember2022-01-012022-12-310001074902us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMember2023-09-300001074902us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMember2023-09-300001074902us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMember2023-09-300001074902us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2023-09-300001074902us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2023-09-300001074902us-gaap:FinancingReceivables30To59DaysPastDueMemberlcnb:CommercialRealEstateOwnerOccupiedClassSegmentMember2023-09-300001074902us-gaap:FinancingReceivables60To89DaysPastDueMemberlcnb:CommercialRealEstateOwnerOccupiedClassSegmentMember2023-09-300001074902us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberlcnb:CommercialRealEstateOwnerOccupiedClassSegmentMember2023-09-300001074902us-gaap:FinancialAssetPastDueMemberlcnb:CommercialRealEstateOwnerOccupiedClassSegmentMember2023-09-300001074902us-gaap:FinancialAssetNotPastDueMemberlcnb:CommercialRealEstateOwnerOccupiedClassSegmentMember2023-09-300001074902us-gaap:FinancingReceivables30To59DaysPastDueMemberlcnb:CommercialRealEstateNonOwnerOccupiedClassSegmentMember2023-09-300001074902us-gaap:FinancingReceivables60To89DaysPastDueMemberlcnb:CommercialRealEstateNonOwnerOccupiedClassSegmentMember2023-09-300001074902us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberlcnb:CommercialRealEstateNonOwnerOccupiedClassSegmentMember2023-09-300001074902lcnb:CommercialRealEstateNonOwnerOccupiedClassSegmentMemberus-gaap:FinancialAssetPastDueMember2023-09-300001074902us-gaap:FinancialAssetNotPastDueMemberlcnb:CommercialRealEstateNonOwnerOccupiedClassSegmentMember2023-09-300001074902us-gaap:FinancingReceivables30To59DaysPastDueMemberlcnb:CommercialRealEstateFarmlandClassSegmentMember2023-09-300001074902us-gaap:FinancingReceivables60To89DaysPastDueMemberlcnb:CommercialRealEstateFarmlandClassSegmentMember2023-09-300001074902us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberlcnb:CommercialRealEstateFarmlandClassSegmentMember2023-09-300001074902lcnb:CommercialRealEstateFarmlandClassSegmentMemberus-gaap:FinancialAssetPastDueMember2023-09-300001074902us-gaap:FinancialAssetNotPastDueMemberlcnb:CommercialRealEstateFarmlandClassSegmentMember2023-09-300001074902us-gaap:FinancingReceivables30To59DaysPastDueMemberlcnb:CommercialRealEstateMultifamilyPropertiesClassSegmentMember2023-09-300001074902us-gaap:FinancingReceivables60To89DaysPastDueMemberlcnb:CommercialRealEstateMultifamilyPropertiesClassSegmentMember2023-09-300001074902us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberlcnb:CommercialRealEstateMultifamilyPropertiesClassSegmentMember2023-09-300001074902us-gaap:FinancialAssetPastDueMemberlcnb:CommercialRealEstateMultifamilyPropertiesClassSegmentMember2023-09-300001074902us-gaap:FinancialAssetNotPastDueMemberlcnb:CommercialRealEstateMultifamilyPropertiesClassSegmentMember2023-09-300001074902us-gaap:FinancingReceivables30To59DaysPastDueMemberlcnb:CommercialRealEstateConstructionLoans14FamilyClassSegmentMember2023-09-300001074902us-gaap:FinancingReceivables60To89DaysPastDueMemberlcnb:CommercialRealEstateConstructionLoans14FamilyClassSegmentMember2023-09-300001074902us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberlcnb:CommercialRealEstateConstructionLoans14FamilyClassSegmentMember2023-09-300001074902lcnb:CommercialRealEstateConstructionLoans14FamilyClassSegmentMemberus-gaap:FinancialAssetPastDueMember2023-09-300001074902us-gaap:FinancialAssetNotPastDueMemberlcnb:CommercialRealEstateConstructionLoans14FamilyClassSegmentMember2023-09-300001074902lcnb:CommercialRealEstateConstructionLoansOtherClassSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-09-300001074902us-gaap:FinancingReceivables60To89DaysPastDueMemberlcnb:CommercialRealEstateConstructionLoansOtherClassSegmentMember2023-09-300001074902us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberlcnb:CommercialRealEstateConstructionLoansOtherClassSegmentMember2023-09-300001074902lcnb:CommercialRealEstateConstructionLoansOtherClassSegmentMemberus-gaap:FinancialAssetPastDueMember2023-09-300001074902lcnb:CommercialRealEstateConstructionLoansOtherClassSegmentMemberus-gaap:FinancialAssetNotPastDueMember2023-09-300001074902us-gaap:FinancingReceivables30To59DaysPastDueMemberlcnb:ResidentialRealEstate14FamilyClosedEndSeniorLiensClassSegmentMember2023-09-300001074902us-gaap:FinancingReceivables60To89DaysPastDueMemberlcnb:ResidentialRealEstate14FamilyClosedEndSeniorLiensClassSegmentMember2023-09-300001074902us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberlcnb:ResidentialRealEstate14FamilyClosedEndSeniorLiensClassSegmentMember2023-09-300001074902us-gaap:FinancialAssetPastDueMemberlcnb:ResidentialRealEstate14FamilyClosedEndSeniorLiensClassSegmentMember2023-09-300001074902us-gaap:FinancialAssetNotPastDueMemberlcnb:ResidentialRealEstate14FamilyClosedEndSeniorLiensClassSegmentMember2023-09-300001074902us-gaap:FinancingReceivables30To59DaysPastDueMemberlcnb:ResidentialRealEstate14FamilyClosedEndJuniorLiensClassSegmentMember2023-09-300001074902us-gaap:FinancingReceivables60To89DaysPastDueMemberlcnb:ResidentialRealEstate14FamilyClosedEndJuniorLiensClassSegmentMember2023-09-300001074902us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberlcnb:ResidentialRealEstate14FamilyClosedEndJuniorLiensClassSegmentMember2023-09-300001074902us-gaap:FinancialAssetPastDueMemberlcnb:ResidentialRealEstate14FamilyClosedEndJuniorLiensClassSegmentMember2023-09-300001074902us-gaap:FinancialAssetNotPastDueMemberlcnb:ResidentialRealEstate14FamilyClosedEndJuniorLiensClassSegmentMember2023-09-300001074902us-gaap:FinancingReceivables30To59DaysPastDueMemberlcnb:ResidentialRealEstate14FamilyRevolvingAndOpenEndClassSegmentMember2023-09-300001074902us-gaap:FinancingReceivables60To89DaysPastDueMemberlcnb:ResidentialRealEstate14FamilyRevolvingAndOpenEndClassSegmentMember2023-09-300001074902us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberlcnb:ResidentialRealEstate14FamilyRevolvingAndOpenEndClassSegmentMember2023-09-300001074902us-gaap:FinancialAssetPastDueMemberlcnb:ResidentialRealEstate14FamilyRevolvingAndOpenEndClassSegmentMember2023-09-300001074902us-gaap:FinancialAssetNotPastDueMemberlcnb:ResidentialRealEstate14FamilyRevolvingAndOpenEndClassSegmentMember2023-09-300001074902us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2023-09-300001074902us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2023-09-300001074902us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2023-09-300001074902us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2023-09-300001074902us-gaap:FinancialAssetNotPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2023-09-300001074902us-gaap:FinancingReceivables30To59DaysPastDueMemberlcnb:AgriculturalMember2023-09-300001074902us-gaap:FinancingReceivables60To89DaysPastDueMemberlcnb:AgriculturalMember2023-09-300001074902us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberlcnb:AgriculturalMember2023-09-300001074902lcnb:AgriculturalMemberus-gaap:FinancialAssetPastDueMember2023-09-300001074902us-gaap:FinancialAssetNotPastDueMemberlcnb:AgriculturalMember2023-09-300001074902us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:UnallocatedFinancingReceivablesMember2023-09-300001074902us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:UnallocatedFinancingReceivablesMember2023-09-300001074902us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:UnallocatedFinancingReceivablesMember2023-09-300001074902us-gaap:UnallocatedFinancingReceivablesMemberus-gaap:FinancialAssetPastDueMember2023-09-300001074902us-gaap:FinancialAssetNotPastDueMemberus-gaap:UnallocatedFinancingReceivablesMember2023-09-300001074902us-gaap:FinancingReceivables30To59DaysPastDueMember2023-09-300001074902us-gaap:FinancingReceivables60To89DaysPastDueMember2023-09-300001074902us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-09-300001074902us-gaap:FinancialAssetPastDueMember2023-09-300001074902us-gaap:FinancialAssetNotPastDueMember2023-09-300001074902us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMember2022-12-310001074902us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMember2022-12-310001074902us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMember2022-12-310001074902us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2022-12-310001074902us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2022-12-310001074902us-gaap:FinancingReceivables30To59DaysPastDueMemberlcnb:CommercialRealEstateOwnerOccupiedClassSegmentMember2022-12-310001074902us-gaap:FinancingReceivables60To89DaysPastDueMemberlcnb:CommercialRealEstateOwnerOccupiedClassSegmentMember2022-12-310001074902us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberlcnb:CommercialRealEstateOwnerOccupiedClassSegmentMember2022-12-310001074902us-gaap:FinancialAssetPastDueMemberlcnb:CommercialRealEstateOwnerOccupiedClassSegmentMember2022-12-310001074902us-gaap:FinancialAssetNotPastDueMemberlcnb:CommercialRealEstateOwnerOccupiedClassSegmentMember2022-12-310001074902us-gaap:FinancingReceivables30To59DaysPastDueMemberlcnb:CommercialRealEstateNonOwnerOccupiedClassSegmentMember2022-12-310001074902us-gaap:FinancingReceivables60To89DaysPastDueMemberlcnb:CommercialRealEstateNonOwnerOccupiedClassSegmentMember2022-12-310001074902us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberlcnb:CommercialRealEstateNonOwnerOccupiedClassSegmentMember2022-12-310001074902lcnb:CommercialRealEstateNonOwnerOccupiedClassSegmentMemberus-gaap:FinancialAssetPastDueMember2022-12-310001074902us-gaap:FinancialAssetNotPastDueMemberlcnb:CommercialRealEstateNonOwnerOccupiedClassSegmentMember2022-12-310001074902us-gaap:FinancingReceivables30To59DaysPastDueMemberlcnb:CommercialRealEstateFarmlandClassSegmentMember2022-12-310001074902us-gaap:FinancingReceivables60To89DaysPastDueMemberlcnb:CommercialRealEstateFarmlandClassSegmentMember2022-12-310001074902us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberlcnb:CommercialRealEstateFarmlandClassSegmentMember2022-12-310001074902lcnb:CommercialRealEstateFarmlandClassSegmentMemberus-gaap:FinancialAssetPastDueMember2022-12-310001074902us-gaap:FinancialAssetNotPastDueMemberlcnb:CommercialRealEstateFarmlandClassSegmentMember2022-12-310001074902us-gaap:FinancingReceivables30To59DaysPastDueMemberlcnb:CommercialRealEstateMultifamilyPropertiesClassSegmentMember2022-12-310001074902us-gaap:FinancingReceivables60To89DaysPastDueMemberlcnb:CommercialRealEstateMultifamilyPropertiesClassSegmentMember2022-12-310001074902us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberlcnb:CommercialRealEstateMultifamilyPropertiesClassSegmentMember2022-12-310001074902us-gaap:FinancialAssetPastDueMemberlcnb:CommercialRealEstateMultifamilyPropertiesClassSegmentMember2022-12-310001074902us-gaap:FinancialAssetNotPastDueMemberlcnb:CommercialRealEstateMultifamilyPropertiesClassSegmentMember2022-12-310001074902us-gaap:FinancingReceivables30To59DaysPastDueMemberlcnb:CommercialRealEstateConstructionLoans14FamilyClassSegmentMember2022-12-310001074902us-gaap:FinancingReceivables60To89DaysPastDueMemberlcnb:CommercialRealEstateConstructionLoans14FamilyClassSegmentMember2022-12-310001074902us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberlcnb:CommercialRealEstateConstructionLoans14FamilyClassSegmentMember2022-12-310001074902lcnb:CommercialRealEstateConstructionLoans14FamilyClassSegmentMemberus-gaap:FinancialAssetPastDueMember2022-12-310001074902us-gaap:FinancialAssetNotPastDueMemberlcnb:CommercialRealEstateConstructionLoans14FamilyClassSegmentMember2022-12-310001074902lcnb:CommercialRealEstateConstructionLoansOtherClassSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-12-310001074902us-gaap:FinancingReceivables60To89DaysPastDueMemberlcnb:CommercialRealEstateConstructionLoansOtherClassSegmentMember2022-12-310001074902us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberlcnb:CommercialRealEstateConstructionLoansOtherClassSegmentMember2022-12-310001074902lcnb:CommercialRealEstateConstructionLoansOtherClassSegmentMemberus-gaap:FinancialAssetPastDueMember2022-12-310001074902lcnb:CommercialRealEstateConstructionLoansOtherClassSegmentMemberus-gaap:FinancialAssetNotPastDueMember2022-12-310001074902us-gaap:FinancingReceivables30To59DaysPastDueMemberlcnb:ResidentialRealEstate14FamilyClosedEndSeniorLiensClassSegmentMember2022-12-310001074902us-gaap:FinancingReceivables60To89DaysPastDueMemberlcnb:ResidentialRealEstate14FamilyClosedEndSeniorLiensClassSegmentMember2022-12-310001074902us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberlcnb:ResidentialRealEstate14FamilyClosedEndSeniorLiensClassSegmentMember2022-12-310001074902us-gaap:FinancialAssetPastDueMemberlcnb:ResidentialRealEstate14FamilyClosedEndSeniorLiensClassSegmentMember2022-12-310001074902us-gaap:FinancialAssetNotPastDueMemberlcnb:ResidentialRealEstate14FamilyClosedEndSeniorLiensClassSegmentMember2022-12-310001074902us-gaap:FinancingReceivables30To59DaysPastDueMemberlcnb:ResidentialRealEstate14FamilyClosedEndJuniorLiensClassSegmentMember2022-12-310001074902us-gaap:FinancingReceivables60To89DaysPastDueMemberlcnb:ResidentialRealEstate14FamilyClosedEndJuniorLiensClassSegmentMember2022-12-310001074902us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberlcnb:ResidentialRealEstate14FamilyClosedEndJuniorLiensClassSegmentMember2022-12-310001074902us-gaap:FinancialAssetPastDueMemberlcnb:ResidentialRealEstate14FamilyClosedEndJuniorLiensClassSegmentMember2022-12-310001074902us-gaap:FinancialAssetNotPastDueMemberlcnb:ResidentialRealEstate14FamilyClosedEndJuniorLiensClassSegmentMember2022-12-310001074902us-gaap:FinancingReceivables30To59DaysPastDueMemberlcnb:ResidentialRealEstate14FamilyRevolvingAndOpenEndClassSegmentMember2022-12-310001074902us-gaap:FinancingReceivables60To89DaysPastDueMemberlcnb:ResidentialRealEstate14FamilyRevolvingAndOpenEndClassSegmentMember2022-12-310001074902us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberlcnb:ResidentialRealEstate14FamilyRevolvingAndOpenEndClassSegmentMember2022-12-310001074902us-gaap:FinancialAssetPastDueMemberlcnb:ResidentialRealEstate14FamilyRevolvingAndOpenEndClassSegmentMember2022-12-310001074902us-gaap:FinancialAssetNotPastDueMemberlcnb:ResidentialRealEstate14FamilyRevolvingAndOpenEndClassSegmentMember2022-12-310001074902us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2022-12-310001074902us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2022-12-310001074902us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2022-12-310001074902us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2022-12-310001074902us-gaap:FinancialAssetNotPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2022-12-310001074902us-gaap:FinancingReceivables30To59DaysPastDueMemberlcnb:AgriculturalMember2022-12-310001074902us-gaap:FinancingReceivables60To89DaysPastDueMemberlcnb:AgriculturalMember2022-12-310001074902us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberlcnb:AgriculturalMember2022-12-310001074902lcnb:AgriculturalMemberus-gaap:FinancialAssetPastDueMember2022-12-310001074902us-gaap:FinancialAssetNotPastDueMemberlcnb:AgriculturalMember2022-12-310001074902us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:UnallocatedFinancingReceivablesMember2022-12-310001074902us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:UnallocatedFinancingReceivablesMember2022-12-310001074902us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:UnallocatedFinancingReceivablesMember2022-12-310001074902us-gaap:UnallocatedFinancingReceivablesMemberus-gaap:FinancialAssetPastDueMember2022-12-310001074902us-gaap:FinancialAssetNotPastDueMemberus-gaap:UnallocatedFinancingReceivablesMember2022-12-310001074902us-gaap:FinancingReceivables30To59DaysPastDueMember2022-12-310001074902us-gaap:FinancingReceivables60To89DaysPastDueMember2022-12-310001074902us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2022-12-310001074902us-gaap:FinancialAssetPastDueMember2022-12-310001074902us-gaap:FinancialAssetNotPastDueMember2022-12-310001074902lcnb:ResidentialRealEstate14FamilyClosedEndSeniorLiensClassSegmentMember2023-07-012023-09-300001074902lcnb:FederalHomeLoanMortgageCorporationandOtherInvestorsMember2023-09-300001074902lcnb:FederalHomeLoanMortgageCorporationandOtherInvestorsMember2022-12-310001074902us-gaap:InterestBearingDepositsMember2023-09-300001074902us-gaap:InterestBearingDepositsMember2022-12-310001074902lcnb:BankersBankMember2023-09-300001074902us-gaap:RevolvingCreditFacilityMember2023-09-300001074902us-gaap:RevolvingCreditFacilityMember2022-12-310001074902us-gaap:LineOfCreditMember2023-09-300001074902us-gaap:LineOfCreditMember2022-12-310001074902us-gaap:FederalHomeLoanBankAdvancesMember2023-09-300001074902us-gaap:FederalHomeLoanBankAdvancesMember2022-12-310001074902us-gaap:RevolvingCreditFacilityMemberlcnb:BankersBankMember2023-09-300001074902lcnb:BankersBankMember2023-01-012023-09-300001074902lcnb:ZionsBankMember2023-09-300001074902lcnb:USBankMember2023-09-300001074902lcnb:USBankMember2023-01-012023-09-300001074902us-gaap:FederalFundsPurchasedMemberlcnb:BankersBankMember2023-01-012023-09-300001074902us-gaap:FederalHomeLoanBankAdvancesMemberus-gaap:AssetPledgedAsCollateralMember2023-09-300001074902us-gaap:FederalHomeLoanBankAdvancesMemberus-gaap:AssetPledgedAsCollateralMember2022-12-310001074902us-gaap:CommercialLoanMember2023-09-300001074902us-gaap:CommercialLoanMember2022-12-310001074902lcnb:OtherLoansMemberlcnb:FixedRateMember2023-09-300001074902lcnb:OtherLoansMemberlcnb:FixedRateMember2022-12-310001074902lcnb:OtherLoansMemberlcnb:AdjustableRateMember2023-09-300001074902lcnb:OtherLoansMemberlcnb:AdjustableRateMember2022-12-310001074902us-gaap:UnusedLinesOfCreditMemberlcnb:FixedRateMember2023-09-300001074902us-gaap:UnusedLinesOfCreditMemberlcnb:FixedRateMember2022-12-310001074902us-gaap:UnusedLinesOfCreditMemberlcnb:AdjustableRateMember2023-09-300001074902us-gaap:UnusedLinesOfCreditMemberlcnb:AdjustableRateMember2022-12-310001074902lcnb:UnusedOverdraftProtectionAmountsOnDemandAndNowAccountsMember2023-09-300001074902lcnb:UnusedOverdraftProtectionAmountsOnDemandAndNowAccountsMember2022-12-310001074902us-gaap:StandbyLettersOfCreditMember2023-09-300001074902us-gaap:StandbyLettersOfCreditMember2022-12-310001074902us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-06-300001074902us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-06-300001074902us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-12-310001074902us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-12-310001074902us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-07-012023-09-300001074902us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-07-012023-09-300001074902us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-01-012023-09-300001074902us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-01-012023-09-300001074902us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-09-300001074902us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-09-300001074902us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-06-300001074902us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-06-300001074902us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-12-310001074902us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-12-310001074902us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-07-012022-09-300001074902us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-07-012022-09-300001074902us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-01-012022-09-300001074902us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-01-012022-09-300001074902us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-09-300001074902us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-09-300001074902us-gaap:PensionPlansDefinedBenefitMember2023-07-012023-09-300001074902us-gaap:PensionPlansDefinedBenefitMember2022-07-012022-09-300001074902us-gaap:PensionPlansDefinedBenefitMember2023-01-012023-09-300001074902us-gaap:PensionPlansDefinedBenefitMember2022-01-012022-09-300001074902us-gaap:RestrictedStockMember2022-12-310001074902us-gaap:RestrictedStockMember2021-12-310001074902us-gaap:RestrictedStockMember2023-01-012023-09-300001074902us-gaap:RestrictedStockMember2022-01-012022-09-300001074902us-gaap:RestrictedStockMember2023-09-300001074902us-gaap:RestrictedStockMember2022-09-300001074902us-gaap:RestrictedStockMember2023-07-012023-09-300001074902us-gaap:RestrictedStockMember2022-07-012022-09-300001074902us-gaap:EquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001074902us-gaap:FairValueInputsLevel1Memberus-gaap:EquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001074902us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001074902us-gaap:FairValueInputsLevel3Memberus-gaap:EquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001074902us-gaap:FairValueInputsLevel1Memberlcnb:MutualFundsMeasuredAtNetAssetValueMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001074902lcnb:MutualFundsMeasuredAtNetAssetValueMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001074902lcnb:MutualFundsMeasuredAtNetAssetValueMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001074902us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001074902us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001074902us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001074902us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001074902us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001074902us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001074902us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001074902us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001074902us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001074902us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001074902us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001074902us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001074902us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001074902us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001074902us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001074902us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001074902us-gaap:NontaxableMunicipalBondsMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001074902us-gaap:NontaxableMunicipalBondsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001074902us-gaap:NontaxableMunicipalBondsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001074902us-gaap:NontaxableMunicipalBondsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001074902us-gaap:TaxableMunicipalBondsMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001074902us-gaap:TaxableMunicipalBondsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001074902us-gaap:TaxableMunicipalBondsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001074902us-gaap:TaxableMunicipalBondsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001074902us-gaap:FairValueMeasurementsRecurringMember2023-09-300001074902us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001074902us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2023-09-300001074902us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001074902us-gaap:FairValueMeasurementsNonrecurringMember2023-09-300001074902us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel1Member2023-09-300001074902us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel2Member2023-09-300001074902us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel3Member2023-09-300001074902us-gaap:EquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001074902us-gaap:FairValueInputsLevel1Memberus-gaap:EquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001074902us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001074902us-gaap:FairValueInputsLevel3Memberus-gaap:EquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001074902us-gaap:MutualFundMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001074902us-gaap:MutualFundMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001074902us-gaap:MutualFundMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001074902us-gaap:MutualFundMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001074902us-gaap:FairValueInputsLevel1Memberlcnb:MutualFundsMeasuredAtNetAssetValueMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001074902lcnb:MutualFundsMeasuredAtNetAssetValueMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001074902lcnb:MutualFundsMeasuredAtNetAssetValueMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001074902us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001074902us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001074902us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001074902us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001074902us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001074902us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001074902us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001074902us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001074902us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001074902us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001074902us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001074902us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001074902us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001074902us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001074902us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001074902us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001074902us-gaap:NontaxableMunicipalBondsMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001074902us-gaap:NontaxableMunicipalBondsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001074902us-gaap:NontaxableMunicipalBondsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001074902us-gaap:NontaxableMunicipalBondsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001074902us-gaap:TaxableMunicipalBondsMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001074902us-gaap:TaxableMunicipalBondsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001074902us-gaap:TaxableMunicipalBondsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001074902us-gaap:TaxableMunicipalBondsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001074902us-gaap:FairValueMeasurementsRecurringMember2022-12-310001074902us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001074902us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2022-12-310001074902us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001074902us-gaap:FairValueMeasurementsNonrecurringMember2022-12-310001074902us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel1Member2022-12-310001074902us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel2Member2022-12-310001074902us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel3Member2022-12-310001074902us-gaap:FairValueMeasurementsNonrecurringMemberlcnb:ImpairedLoansFairValueCalculatedUsingEstimatedSalesPriceMemberus-gaap:FairValueInputsLevel3Member2023-09-300001074902us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel3Memberlcnb:ImpairedLoansFairValueCalculatedUsingDiscountedCashFlowsMember2022-12-310001074902us-gaap:MeasurementInputDiscountRateMembersrt:MaximumMemberus-gaap:IncomeApproachValuationTechniqueMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel3Memberlcnb:ImpairedLoansFairValueCalculatedUsingDiscountedCashFlowsMember2022-12-310001074902us-gaap:MeasurementInputDiscountRateMemberus-gaap:IncomeApproachValuationTechniqueMemberus-gaap:FairValueMeasurementsNonrecurringMembersrt:MinimumMemberus-gaap:FairValueInputsLevel3Memberlcnb:ImpairedLoansFairValueCalculatedUsingDiscountedCashFlowsMember2022-12-310001074902srt:WeightedAverageMemberus-gaap:MeasurementInputDiscountRateMemberus-gaap:IncomeApproachValuationTechniqueMemberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel3Memberlcnb:ImpairedLoansFairValueCalculatedUsingDiscountedCashFlowsMember2022-12-310001074902us-gaap:CarryingReportedAmountFairValueDisclosureMember2023-09-300001074902us-gaap:EstimateOfFairValueFairValueDisclosureMember2023-09-300001074902us-gaap:FairValueInputsLevel1Member2023-09-300001074902us-gaap:FairValueInputsLevel2Member2023-09-300001074902us-gaap:FairValueInputsLevel3Member2023-09-300001074902us-gaap:CarryingReportedAmountFairValueDisclosureMember2022-12-310001074902us-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310001074902us-gaap:FairValueInputsLevel1Member2022-12-310001074902us-gaap:FairValueInputsLevel2Member2022-12-310001074902us-gaap:FairValueInputsLevel3Member2022-12-31

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.   20549

FORM 10-Q

(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2023
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                                                        to                                                      

Commission File Number 001-35292
LCNB Corp.
(Exact name of registrant as specified in its charter)
Ohio  31-1626393
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification Number)

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

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

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 (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
            ☒ Yes         No
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
            ☒ Yes         No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer ☐                            Accelerated filer
Non-accelerated filer ☒                             Smaller reporting company
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.



Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).
             Yes         No
The number of shares outstanding of the issuer's common stock, without par value, as of November 7, 2023 was 11,124,072 shares.


LCNB CORP. AND SUBSIDIARIES

TABLE OF CONTENTS
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  










1

Glossary of Abbreviations and Acronyms
ACLAllowance for Credit Losses
AFSAvailable-for-Sale
ASCAccounting Standards Codification
ASUAccounting Standards Update
BankLCNB National Bank
CARES ActCoronavirus Aid, Relief, and Economic Security Act
CECLCurrent expected credit losses
CEOChief Executive Officer
CFOChief Financial Officer
CNNBCincinnati Bancorp, Inc.
CompanyLCNB Corp. and its consolidated subsidiaries as a whole
DCFDiscounted Cash Flow
DDADemand Deposit Account
Dodd-Frank ActDodd-Frank Wall Street Reform and Consumer Protection Act
Economic Aid ActEconomic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act
FASBFinancial Accounting Standards Board
FDICFederal Deposit Insurance Corporation
FFIECFinancial Institutions Examination Council
FHLBFederal Home Loan Bank
FOMCFederal Open Market Committee of the Federal Reserve System
GAAPGenerally Accepted Accounting Principles
HTMHeld-to-Maturity
IRAIndividual Retirement Account
LCNBLCNB Corp. and its consolidated subsidiaries as a whole
LDALoss Driver Analysis
LGDLoss Given Default
LIBORLondon Interbank Offered Rate
LIHTCLow Income Housing Tax Credit
OCCOffice of the Comptroller of the Currency
PDProbability of Default
PPPPaycheck Protection Program
SECSecurities and Exchange Commission
TDRsTroubled Debt Restructurings
WARMWeighted Average Remaining Maturity
    

2

PART I – FINANCIAL INFORMATION
 
Item 1.Financial Statements

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 deposits20,298 2,457 
Total cash and cash equivalents43,422 22,701 
Investment securities:  
Equity securities with a readily determinable fair value, at fair value1,254 2,273 
Equity securities without a readily determinable fair value, at cost2,099 2,099 
Debt securities, available-for-sale, at fair value274,500 289,850 
Debt securities, held-to-maturity, at cost, net19,006 19,878 
Federal Reserve Bank stock, at cost4,652 4,652 
Federal Home Loan Bank stock, at cost7,583 4,415 
Loans, net1,450,472 1,395,632 
Premises and equipment, net33,288 33,042 
Operating lease right-of-use assets6,093 6,525 
Goodwill59,221 59,221 
Core deposit and other intangibles, net1,351 1,827 
Bank-owned life insurance45,128 44,298 
Interest receivable8,087 7,482 
Other assets, net25,512 25,503 
TOTAL ASSETS1,981,668 1,919,398 
LIABILITIES:  
Deposits:  
Noninterest-bearing$453,146 505,824 
Interest-bearing1,163,744 1,099,146 
Total deposits1,616,890 1,604,970 
Short-term borrowings30,000 71,455 
Long-term debt112,641 19,072 
Operating lease liabilities6,317 6,647 
Accrued interest and other liabilities14,471 16,579 
TOTAL LIABILITIES1,780,319 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 earnings143,211 139,249 
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' EQUITY201,349 200,675 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$1,981,668 $1,919,398 

The accompanying notes to consolidated condensed financial statements are an integral part of these statements.
3

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,
 2023202220232022
INTEREST INCOME:
Interest and fees on loans$17,875 15,026 50,781 43,360 
Dividends on equity securities:
With a readily determinable fair value9 14 34 40 
Without a readily determinable fair value29 6 79 16 
Interest on debt securities:
Taxable1,296 1,323 3,962 3,672 
Non-taxable173 190 523 567 
Other investments286 145 910 379 
TOTAL INTEREST INCOME19,668 16,704 56,289 48,034 
INTEREST EXPENSE:    
Interest on deposits4,426 979 10,217 2,493 
Interest on short-term borrowings830 71 3,142 320 
Interest on long-term debt841 210 1,240 387 
TOTAL INTEREST EXPENSE6,097 1,260 14,599 3,200 
NET INTEREST INCOME13,571 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 LOSSES13,685 15,601 41,831 44,565 
NON-INTEREST INCOME:    
Fiduciary income1,736 1,513 5,263 4,851 
Service charges and fees on deposit accounts1,397 1,706 4,324 4,658 
Bank-owned life insurance income282 269 830 803 
Gains from sales of loans29  38 188 
Other operating income134 93 350 159 
TOTAL NON-INTEREST INCOME3,578 3,581 10,805 10,659 
NON-INTEREST EXPENSE:    
Salaries and employee benefits7,044 7,062 21,454 21,291 
Equipment expenses397 398 1,175 1,234 
Occupancy expense, net805 790 2,367 2,300 
State financial institutions tax396 439 1,189 1,312 
Marketing223 215 735 845 
Amortization of intangibles113 113 336 365 
FDIC insurance premiums, net224 137 663 397 
Contracted services671 613 1,978 1,902 
Other real estate owned, net1 5 3 (874)
Merger-related expenses302  742  
Other non-interest expense2,068 2,578 6,205 7,297 
TOTAL NON-INTEREST EXPENSE12,244 12,350 36,847 36,069 
INCOME BEFORE INCOME TAXES5,019 6,832 15,789 19,155 
PROVISION FOR INCOME TAXES949 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 
Diluted0.37 0.49 1.16 1.36 
Weighted average common shares outstanding:    
Basic11,038,720 11,284,225 11,094,185 11,478,256 
Diluted11,038,720 11,284,225 11,094,185 11,478,256 
The accompanying notes to consolidated condensed financial statements are an integral part of these statements.
4

LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(In thousands)
(Unaudited)
Three Months Ended
September 30,
Nine Months Ended 
September 30,
 2023202220232022
Net income$4,070 5,579 12,921 15,720 
Other comprehensive income (loss):    
Net unrealized gain (loss) on available-for-sale debt securities (net of taxes of $(782) and $(2,571) for the three months ended September 30, 2023 and 2022, respectively, and $(203) and $(7,923) for the nine months ended September 30, 2023 and 2022, respectively)
(2,941)(9,670)(758)(29,804)
Change in nonqualified pension plan unrecognized net loss and unrecognized prior service cost (net of taxes of $0 and $1 for the three and nine months ended September 30, 2022, respectively)
 1  4 
  Other comprehensive income (loss), net of tax(2,941)(9,669)(758)(29,800)
TOTAL COMPREHENSIVE INCOME (LOSS)$1,129 (4,090)12,163 (14,080)

The accompanying notes to consolidated condensed financial statements are an integral part of these statements.

5

LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF SHAREHOLDERS' EQUITY
(Dollars in thousands, except per share data)
(Unaudited)
 Common Shares OutstandingCommon StockRetained
Earnings
Treasury
Shares
Accumulated Other Comprehensive LossTotal Shareholders'
Equity
Three Months Ended September 30, 2023
Balance at July 1, 202311,116,080 $144,671 141,431 (56,015)(27,771)202,316 
Net income  4,070   4,070 
Other comprehensive loss, net of taxes   (2,941)(2,941)
Dividend Reinvestment and Stock Purchase Plan7,302 111   111 
Repurchase of common stock   
Compensation expense relating to restricted stock 83 83 
Common stock dividends, $0.21 per share
  (2,290)  (2,290)
Balance at September 30, 202311,123,382 $144,865 143,211 (56,015)(30,712)201,349 
Nine Months Ended September 30, 2023
Balance at January 1, 202311,259,080 $144,069 139,249 (52,689)(29,954)200,675 
Cumulative change in accounting principle - ASC 326(1,922)(1,922)
Balance at January 1, 2023, adjusted11,259,080 144,069 137,327 (52,689)(29,954)198,753 
Net income  12,921   12,921 
Other comprehensive loss, net of taxes   (758)(758)
Dividend Reinvestment and Stock Purchase Plan20,065 315   315 
Repurchase of common stock(199,913)(3,326)(3,326)
Shares issued for restricted stock awards44,150 
Compensation expense relating to restricted stock481 481 
Common stock dividends, $0.63 per share
  (7,037)  (7,037)
Balance at September 30, 202311,123,382 $144,865 143,211 (56,015)(30,712)201,349 
Three Months Ended September 30, 2022
Balance at July 1, 202211,374,515 $143,635 131,894 (50,629)(21,940)202,960 
Net income  5,579   5,579 
Other comprehensive loss, net of taxes    (9,669)(9,669)
Dividend Reinvestment and Stock Purchase Plan6,857 107    107 
Repurchase of common stock(87,733)(1,380)(1,380)
Compensation expense relating to restricted stock113 113 
Common stock dividends, $0.20 per share
  (2,271)  (2,271)
Balance at September 30, 202211,293,639 $143,855 135,202 (52,009)(31,609)195,439 
Nine Months Ended September 30, 2022
Balance at January 1, 202212,414,956 $143,130 126,312 (29,029)(1,809)238,604 
Net income  15,720   15,720 
Other comprehensive loss, net of taxes    (29,800)(29,800)
Dividend Reinvestment and Stock Purchase Plan18,585 308    308 
Repurchase of common stock(1,172,456)(22,980)(22,980)
Shares issued for restricted stock awards32,554 
Compensation expense relating to restricted stock417 417 
Common stock dividends, $0.60 per share
  (6,830)  (6,830)
Balance at September 30, 202211,293,639 $143,855 135,202 (52,009)(31,609)195,439 

The accompanying notes to consolidated condensed financial statements are an integral part of these statements.
6

LCNB CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Nine Months Ended 
September 30,
 20232022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income$12,921 15,720 
Adjustments to reconcile net income to net cash flows from operating activities:  
Depreciation, amortization, and accretion2,395 2,177 
Provision for (recovery of) credit losses(141)269 
Benefit from deferred income taxes(793)(444)
Increase in cash surrender value of bank-owned life insurance(830)(803)
Loss on equity securities78 384 
Realized (gain) loss from sales of premises and equipment(427)456 
Realized gain from sales of other real estate owned (889)
Origination of mortgage loans for sale(2,205)(8,468)
Realized gains from sales of loans(38)(188)
Proceeds from sales of mortgage loans2,218 8,562 
Compensation expense related to restricted stock481 417 
Changes in:  
Accrued interest receivable(605)377 
Other assets1,497 2,075 
Other liabilities(2,300)(1,303)
TOTAL ADJUSTMENTS(670)2,622 
NET CASH FLOWS PROVIDED BY OPERATING ACTIVITIES12,251 18,342 
CASH FLOWS FROM INVESTING ACTIVITIES:  
Proceeds from sales of equity securities963  
Proceeds from maturities and calls of debt securities:
Available-for-sale14,262 17,797 
Held-to-maturity1,146 1,312 
Purchases of equity securities(22)(13)
Purchases of debt securities:
   Available-for-sale(497)(38,581)
Held-to-maturity(280)(755)
Purchases of Federal Home Loan Bank stock(4,537) 
Proceeds from redemption of Federal Home Loan Bank stock1,369 1,162 
Net increase in loans(56,711)(7,454)
Proceeds from sale of other real estate owned 1,605 
Purchases of premises and equipment(1,723)(553)
Proceeds from sale of premises and equipment514 874 
NET CASH FLOWS USED IN INVESTING ACTIVITIES(45,516)(24,606)
CASH FLOWS FROM FINANCING ACTIVITIES:  
Net increase in deposits11,920 28,551 
Net increase (decrease) in short-term borrowings(41,455)4,000 
Proceeds from long-term debt95,000 15,000 
Principal payments on long-term debt(1,431)(461)
Proceeds from issuance of common stock315 308 
Repurchase of common stock(3,326)(22,980)
Cash dividends paid on common stock(7,037)(6,830)
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES53,986 17,588 
NET CHANGE IN CASH AND CASH EQUIVALENTS20,721 11,324 
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD22,701 18,136 
CASH AND CASH EQUIVALENTS AT END OF PERIOD$43,422 29,460 
SUPPLEMENTAL CASH FLOW INFORMATION:  
Interest paid$13,706 3,243 
Income taxes paid, net of refunds2,226 2,900 
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING ACTIVITIES:  
Transfer from loans to other real estate owned 716 

The accompanying notes to consolidated condensed financial statements are an integral part of these statements.
7

LCNB CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)

NOTE 1 - BASIS OF PRESENTATION
 
BASIS OF PRESENTATION
The accompanying unaudited interim consolidated condensed financial statements include LCNB Corp. and its wholly-owned subsidiaries: LCNB National Bank and LCNB Risk Management, Inc., its captive insurance company. All material intercompany transactions and balances are eliminated in consolidation.

The unaudited interim consolidated condensed financial statements have been prepared in accordance with U.S. GAAP for interim financial information and the rules and regulations of the SEC.  Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations.  In the opinion of management, the unaudited interim consolidated financial statements include all adjustments (consisting of normal, recurring accruals) considered necessary for a fair presentation of the Company's financial position, results of consolidated operations, and cash flows for the interim periods, as required by Regulation S-X, Rule 8-03.

The consolidated condensed balance sheet as of December 31, 2022 has been derived from the audited consolidated balance sheet as of that date.

Certain prior period data presented in the financial statements have been reclassified to conform with the current period presentation. These reclassifications had no effect on net income.

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of the results to be expected for the full year ending December 31, 2023.  These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements, accounting policies, and financial notes thereto included in LCNB's 2022 Annual Report on Form 10-K filed with the SEC.

ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS
Financial Accounting Standards (“FASB”) Accounting Standards Update (“ASU”) No. 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting"
ASU No. 2020-04 was issued in March 2020 and provides optional guidance for a limited period of time to ease the potential burden in accounting for or recognizing the effects of reference rate reform on financial reporting. The amendments provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. Originally, the amendments in this update were effective for all entities as of March 12, 2020 through December 31, 2022. ASU No. 2022-06, "Reference
Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848" extended the sunset date from December 31, 2022 to
December 31, 2024. LCNB has adopted the standard and utilized the LIBOR transition relief allowed under ASU 2020-04 and ASU 2020-06. The impact was immaterial, as all loans indexed to LIBOR were transitioned to another referenced index, predominately the Secured Overnight Financing Rate ("SOFR") for one, three, and six months. In all instances, LCNB was able to meet the criteria for the practical expedients and there was no impact on its results of consolidated operations or financial position.








8

LCNB CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)
(Continued)


ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial
Instruments" ("ASC 326")
The Company adopted ASC 326 on January 1, 2023. It significantly changed guidance for recognizing impairment of financial instruments. Previous guidance required an "incurred loss" methodology for recognizing credit losses that delayed recognition until it was probable a loss had been incurred. ASC 326 replaced the incurred loss impairment methodology with a new "current expected credit loss" ("CECL") methodology that reflects expected credit losses over the lives of the credit instruments and requires consideration of a broader range of information to estimate credit losses. ASC 326 requires an organization to estimate all expected credit losses for financial assets measured at amortized cost, including loans and held-to-maturity debt securities, based on historical experience, current conditions, and reasonable and supportable forecasts. It also applies to off-balance sheet credit exposures, such as loan commitments, standby letters of credit, financial guarantees, and other similar instruments. ASC 326 also made changes to the accounting for credit losses on available-for-sale debt securities. Additional disclosures are required. Adoption of ASC 326 did not have a material impact on LCNB's results of consolidated operations or financial position.

LCNB adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for reporting periods beginning after January 1, 2023 are presented under ASC 326, while prior period amounts continue to be reported in accordance with previously applicable guidance. The following table shows the impact of adopting ASC 326 on January 1, 2023 (in thousands):


As Reported Pre-ASC 326Impact of ASC 326 AdoptionAs Reported Under ASC 326
Assets:
Loans, gross of allowance$1,401,278 341 1,401,619 
ACL on loans(5,646)(2,196)(7,842)
ACL on debt securities, held to maturity (7)(7)
Deferred tax assets, net6,639 511 7,150 
Liabilities:
ACL on off-balance sheet credit exposures 571 571 
Shareholders' Equity:
Retained earnings139,249 (1,922)137,327 


ACL - LOANS
The allowance for credit losses ("ACL") is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes that the uncollectability of a loan balance is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off.

Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as changes in external conditions, such as changes in unemployment rates, property values, or other relevant factors.



9

LCNB CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)
(Continued)


Accrued interest receivable totaling $6.6 million at September 30, 2023 was excluded from the amortized cost basis of the estimate of credit losses and is reported in interest receivable on the consolidated condensed balance sheets. Loans are generally placed on non-accrual status at 90 days past due or when the borrower's ability to repay becomes doubtful. When a loan is placed on non-accrual status, any accrued interest is reversed and charged against interest income.

ACL - LOANS - COLLECTIVELY EVALUATED
The ACL is measured on a collective pool basis when similar risk characteristics exist. LCNB has identified the following portfolio segments:
Commercial and industrial loans
Commercial, secured by real estate
Real estate loans secured by owner occupied commercial real estate
Real estate loans secured by non-owner occupied commercial real estate
Real estate loans secured by farmland
Real estate loans secured by multi-family dwellings
Construction loans secured by 1-4 family dwellings
Construction loans secured by other real estate

Residential real estate
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
Agricultural loans not secured by real estate
DDA Overdrafts

Measures of the allowance for credit loss are as follows:
Portfolio Segment
Pool
Methodology
Loss Driver(s)
Agricultural
Ag Production and Other Farm
Remaining Life
N/A
Commercial & industrial
Commercial & Industrial
Discounted Cash Flow
Weighted Combined MSA Unemployment and Coincident Economic Activity (CEA) Index for Ohio
Commercial, secured by real estate
Commercial Real Estate (CRE) Non-Owner Occupied
Discounted Cash Flow
Weighted Combined MSA Unemployment
Commercial, secured by real estate
Commercial Real Estate (CRE) Owner Occupied
Discounted Cash Flow
Weighted Combined MSA Unemployment and Moody's Commercial Real Estate Price Indexes (CREPI) - US Commercial
Commercial, secured by real estate
Farm Real Estate
Remaining Life
N/A
Residential real estate
Home Equity Line
Discounted Cash Flow
Weighted Combined MSA Unemployment
Consumer
Installment - Direct and ODP (Consumer)
Discounted Cash Flow
Weighted Combined MSA Unemployment
Consumer
Letter of Credit
Discounted Cash Flow/Manual
N/A
Commercial, secured by real estate
Multifamily
Discounted Cash Flow
Weighted Combined MSA Unemployment
Commercial, secured by real estate
Other Construction, Land Development, and Other Land
Discounted Cash Flow
Weighted Combined MSA Unemployment and Weighted Combined MSA Home Price Index
Consumer
Overdrafts
Manual
N/A
Other
Other Loans
Remaining Life
N/A
Residential real estate
Real Estate Mortgage
Discounted Cash Flow
Weighted Combined MSA Unemployment
Residential real estate
Residential 1-4 Family Construction
Discounted Cash Flow
Weighted Combined MSA Unemployment and Weighted Combined MSA Home Price Index
Residential real estate
Second Mortgage (Residential)
Discounted Cash Flow
Weighted Combined MSA Unemployment
*"MSA" referenced above combines forecasts for Cincinnati, Dayton and Columbus metro areas.
**"Weighted" referenced above refers to weighted average of baseline and alternative scenarios

10

LCNB CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)
(Continued)


Management has chosen the discounted cash flow ("DCF") methodology to estimate the quantitative portion of the allowance for credit losses on loans for all loan pools except for the farm real estate and agricultural pools, which use the weighted average remaining maturity ("WARM") methodology. A Loss Driver Analysis (“LDA”) was performed for each segment to identify potential loss drivers and create a regression model for use in forecasting cash flows. The LDA for all DCF-based pools utilized LCNB’s data and peer data from the Federal Financial Institutions Examination Council's (“FFIEC”) Call Report filings.

In creating the DCF model, as well as reviewing the model quarterly, management established a one-quarter reasonable and supportable forecast period with a two-quarter straight line reversion to the long-term historical average. Due to the infrequency of losses within the farm real estate and agricultural loan portfolios, LCNB elected to use peer data for a more statistically sound calculation.

Key assumptions in the DCF model include the probability of default (“PD”), loss given default (“LGD”), and prepayment/curtailment rates. The model-driven PD and LGD are derived using company specific historical data. Prepayment and curtailment rates were calculated using third party studies of LCNB's data.

Expected credit losses are estimated over the contractual term of the loans, adjusted for prepayments when appropriate. The contractual term excludes extensions, renewals, and modifications unless the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company.

Qualitative factors for the DCF and WARM methodologies include the following:
Actual and expected changes in international, national, regional, and local economic and business conditions and developments in which the Company operates that affect the collectability of financial assets;
The effect of other external factors such as the regulatory, legal and technological environments, competition, and events such as natural disasters or pandemics; and
Model risk including statistical risk, reversion risk, timing risk, and model limitation risk.

ACL - LOANS - INDIVIDUALLY EVALUATED
Loans that do not share risk characteristics are evaluated on an individual basis and are excluded from the collective evaluation.
Management has determined that any loans which have been placed on non-performing status will be individually evaluated. When management determines that foreclosure is probable, expected credit losses for collateral dependent loans are based on the estimated fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. A loan is considered collateral dependent when the borrower is experiencing financial difficulty and the loan is expected to be repaid substantially through the operation or sale of the collateral. Other non-performing loans may estimate fair value using either the collateral valuation or the net present value of expected future cash receipts, depending on the financial situation of the borrower.

ACL - HELD-TO-MATURITY (“HTM”) DEBT SECURITIES
Expected credit losses on HTM debt securities are measured on a collective basis by major security type. Accrued interest receivable on HTM securities totaled $232,000 at September 30, 2023 and is excluded from the estimate of credit losses. The HTM securities portfolio consists of taxable and nontaxable municipal securities from local governmental entities. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. At the time of adoption, the estimated reserve was immaterial.

ACL - AVAILABLE-FOR-SALE (“AFS”) DEBT SECURITIES
For AFS debt securities in an unrealized loss position, LCNB first assesses whether it intends to sell, or it is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through income. For AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any decline in fair value that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of applicable taxes.
11

LCNB CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)
(Continued)


Changes in the ACL are recorded as a provision for (or recovery of) credit loss expense. Losses are charged against the allowance when management believes that uncollectability of an AFS debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

Accrued interest receivable on AFS debt securities totaled $1.2 million at September 30, 2023 and is excluded from the estimate of credit losses.

ACL - OFF-BALANCE SHEET CREDIT EXPOSURES
LCNB estimates expected credit losses over the contractual period during which it is exposed to credit risk by a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on off-balance sheet credit exposures is adjusted as a provision for (or recovery of) credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate is made of expected credit losses on commitments expected to be funded over their estimated lives. Funding rates are based on a historical analysis of the Company’s portfolio, while estimates of credit losses are determined using the same loss rates as funded loans.

REGULATORY CAPITAL
Federal banking regulatory agencies allow an optional phase-in period of three years for banks to absorb the impact to regulatory capital of implementing CECL. LCNB has elected not to exercise this option and the full impact of adopting ASC 326 is included in regulatory capital as of September 30, 2023. Adoption of the ASC did not materially affect LCNB's regulatory capital ratios.

ASU No. 2022-02, "Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures"
ASU No. 2022-02 was issued in March 2022 and became effective for LCNB on January 1, 2023. These amendments eliminated previous TDR recognition and measurement guidance and, instead, required that an entity evaluate whether the modification represents a new loan or a continuation of an existing loan. The amendments also enhance disclosure requirements and introduce new disclosure requirements for certain modifications to borrowers experiencing financial difficulties. Additionally, the amendments require the disclosure of current-period gross charge-offs by year of origination.

RECENT ACCOUNTING PRONOUNCEMENTS NOT YET EFFECTIVE
From time to time the FASB issues an ASU to communicate changes to U.S. GAAP. The following information provides brief summaries of newly issued but not yet effective ASUs that could have an effect on LCNB’s financial position or results of consolidated operations:

ASU No. 2023-02, "Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method (a Consensus of the Emerging Issues Task Force)"
ASU No. 2023-02 was issued in March 2023 and allows reporting entities the option to use the proportional amortization method to account for equity investments made primarily for the purpose of receiving income tax credits and other income tax benefits when certain requirements are met, regardless of the tax credit program from which the income tax credits are received. The proportional amortization method was previously limited to Low-Income Housing Tax Credit investments. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the income tax credits and other income tax benefits received and recognizes the net amortization and income tax credits and other income tax benefits in the income statement as a component of income tax expense (benefit). For public business entities, the amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2024, including interim periods within those fiscal years. Early adoption is permitted. LCNB does not expect adoption of ASU No. 2023-02 to have a material impact on its results of consolidated operations or financial position.

12

LCNB CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)
(Continued)


NOTE 2 - BUSINESS COMBINATION

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 17, 2023 whereby CNNB would merge with and into LCNB in a stock-and-cash transaction. CNNB operated five full-service branch offices in Cincinnati, Ohio and Northern Kentucky and had approximately $310.8 million in assets, $265.6 million in net loans, $211.4 million of deposits, and $39.7 million in consolidated stockholders’ equity as of September 30, 2023. The transaction, which was completed November 1, 2023, significantly increased LCNB’s existing presence in the Cincinnati market and expanded LCNB’s community banking franchise across the Ohio River into the Northern Kentucky market.

Subject to the terms of the merger agreement, which was 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. As of March 31, 2023, CNNB reported 2,884,171 shares of common stock outstanding, as well as 296,350 options with a weighted average strike price of $10.65 per share. Any unexercised stock options of CNNB were canceled in exchange for a cash payment of $17.21 less the per share exercise price of the option. The transaction consideration was subject to dollar-for-dollar downward adjustment if CNNB’s adjusted shareholders’ equity, as defined in the merger agreement, is less than $36.8 million as measured three business days immediately before the closing date.

At the time of closing, Cincinnati Federal branches become branches of LCNB National Bank. Going forward, LCNB has 33 banking offices in Ohio and one branch office in Northern Kentucky.

13

LCNB CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)
(Continued)


NOTE 3 - INVESTMENT SECURITIES
 
The amortized cost and estimated fair value of debt securities and the allowance for credit losses of securities held-to-maturity at September 30, 2023 and December 31, 2022 are summarized as follows (in thousands):
 Amortized CostUnrealized GainsUnrealized LossesFair Value
September 30, 2023
Debt Securities, Available-for-Sale:
U.S. Treasury notes$78,451  8,323 70,128 
U.S. Agency notes89,014  10,662 78,352 
Corporate bonds7,450  944 6,506 
U.S. Agency mortgage-backed securities83,613  13,061 70,552 
Municipal securities:
Non-taxable8,809  522 8,287 
Taxable46,005  5,330 40,675 
 $313,342  38,842 274,500 
Debt Securities, Held-to-Maturity:
Municipal securities:
Non-taxable$15,582 2 1,578 14,006 
Taxable3,431  514 2,917 
$19,013 2 2,092 16,923 
December 31, 2022
Debt Securities, Available-for-Sale:
U.S. Treasury notes$84,927  8,480 76,447 
U.S. Agency notes89,160  11,184 77,976 
Corporate Bonds7,450 13 778 6,685 
U.S. Agency mortgage-backed securities90,746 5 11,311 79,440 
Municipal securities:
Non-taxable8,892  368 8,524 
Taxable46,556 1 5,779 40,778 
 $327,731 $19 37,900 289,850 
Debt Securities, Held-to-Maturity:
Municipal securities:
Non-taxable$16,447 10 594 15,863 
Taxable3,431  409 3,022 
$19,878 10 1,003 18,885 

The Company estimated the expected credit losses at September 30, 2023 to be immaterial based on the composition of the securities portfolio.




14

LCNB CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)
(Continued)

NOTE 3 - INVESTMENT SECURITIES (continued)

Information concerning debt securities with gross unrealized losses at September 30, 2023 and December 31, 2022, aggregated by length of time that individual securities have been in a continuous loss position, is as follows (dollars in thousands):
 Less than Twelve MonthsTwelve Months or Greater
 Fair ValueUnrealized LossesFair ValueUnrealized Losses
September 30, 2023
Available-for-Sale:
U.S. Treasury notes$  70,128 8,323 
U.S. Agency notes  78,352 10,662 
Corporate bonds720 30 5,786 914 
U.S. Agency mortgage-backed securities528 3 70,024 13,058 
Municipal securities:
Non-taxable1,965 53 6,322 469 
Taxable180  40,495 5,330 
 $3,393 86 271,107 38,756 
Held-to-Maturity:
Municipal securities:
  Non-taxable$5,888 798 7,389 780 
  Taxable  2,917 514 
$5,888 798 10,306 1,294 
December 31, 2022
Available-for-Sale:
U.S. Treasury notes$16,521 931 59,927 7,549 
U.S. Agency notes7,729 543 70,247 10,641 
Corporate Bonds2,667 283 3,255 495 
U.S. Agency mortgage-backed securities41,543 3,597 37,282 7,714 
Municipal securities:
Non-taxable6,831 248 893 120 
Taxable22,162 1,951 18,435 3,828 
 $97,453 7,553 190,039 30,347 
Held-to-Maturity:
Municipal securities:
  Non-taxable$9,567 593 31 1 
  Taxable2,811 370 212 39 
$12,378 963 243 40 

15

LCNB CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)
(Continued)

NOTE 3 - INVESTMENT SECURITIES (continued)

Securities are reviewed on a quarterly basis to assess declines in fair value for credit losses. For available-for-sale debt securities in an unrealized loss position, LCNB first assesses whether it intends to sell the security or if it is more likely than not that it will be required to sell the security before recovery of the amortized cost basis, which may be at maturity. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through income with the establishment of an allowance. If the debt security does not meet the aforementioned criteria, LCNB evaluates whether the decline in fair value is due to credit loss factors. In making this assessment, LCNB considers any changes to the rating of the security by a rating agency and considers if there are any adverse conditions specifically related to the issuer of the security, among other factors. U.S. Treasury notes, U.S. Agency notes, and U.S. Agency mortgage-backed securities are issued or guaranteed by the U.S. federal government or agencies thereof and risk of credit loss is considered minimal for these securities. For available-for-sale debt securities outstanding at September 30, 2023, management concluded that, in all instances, fair values were less than carrying values due to market and other factors and that no credit loss provisions were required.

Debt securities with a market value of $143.7 million and $166.4 million at September 30, 2023 and December 31, 2022, respectively, were pledged to secure public deposits and for other purposes required or as permitted by law.

Excluding holdings in U.S. Treasury securities and U.S. Government Agencies, there were no investments in securities of any
issuer that exceeded 10% of LCNB's consolidated shareholders' equity at September 30, 2023.

Contractual maturities of debt securities at September 30, 2023 were as follows (in thousands).  Actual maturities may differ from contractual maturities when issuers have the right to call or prepay obligations.
 Available-for-SaleHeld-to-Maturity
Amortized CostFair ValueAmortized CostFair Value
Due within one year$8,904 8,846 280 281 
Due from one to five years172,144 153,515 3,586 3,444 
Due from five to ten years48,681 41,587 2,440 2,184 
Due after ten years  12,707 11,014 
 229,729 203,948 19,013 16,923 
U.S. Agency mortgage-backed securities83,613