0001437749-26-007758
SEC filingLCNB Corp. reported net income of $23.1 million for fiscal year 2025, with earnings per share of $2.00 (basic and diluted). The company generated total interest income of $102.7 million and net interest income of $70.2 million, while total interest expense was $32.5 million. Non-interest income contributed $21.8 million, primarily from revenue ($16.9 million) and net gains from sales of loans ($2.9 million). Total non-interest expense was $61.9 million, with salaries and employee benefits being the largest component at $35.5 million. The company maintained a strong balance sheet with total assets of $2.24 billion, total deposits of $1.84 billion, and total shareholders' equity of $273.9 million. Cash flow from operations was $34.4 million, while investing activities provided $52.1 million and financing activities used $100.6 million.
LCNB Corp. reported net income of $23.1 million for the fiscal year ended December 31, 2025, with earnings per share of $2.00 (both basic and diluted). The company generated total interest income of $102.7 million, primarily from interest and fees on loans ($94.3 million) and other investments ($2.8 million). Total interest expense was $32.5 million, resulting in net interest income of $70.2 million. After a provision for credit losses of $1.9 million, net interest income after provision for credit losses was $68.3 million. Non-interest income totaled $21.8 million, while non-interest expense was $61.9 million, leading to income before income taxes of $28.2 million and income tax expense of $5.0 million.
The company's revenue is primarily derived from interest income, which totaled $102.7 million for the year. The largest component was interest and fees on loans at $94.3 million, with additional contributions from taxable investments ($4.9 million), non-taxable investments ($625K), and other investments ($2.8 million). Non-interest income of $21.8 million included revenue of $16.9 million, bank owned life insurance income of $1.4 million, net gains from sales of loans of $2.9 million, and other operating income of $501K. The company operates primarily in Southwestern and South Central Ohio and Northern Kentucky, with 35 offices and 34 ATMs as of December 31, 2025.
The company's net interest margin is reflected in the net interest income of $70.2 million, representing the difference between total interest income ($102.7 million) and total interest expense ($32.5 million). Non-interest expense of $61.9 million included significant components such as salaries and employee benefits ($35.5 million), occupancy expense ($4.0 million), contracted services ($3.5 million), and other non-interest expense ($10.2 million). The company's profitability is impacted by the provision for credit losses of $1.9 million, which represents management's estimate of expected credit losses in the loan portfolio.
Cash flow from operating activities was $34.4 million, primarily from net income of $23.1 million adjusted for non-cash items including depreciation, amortization and accretion ($668K), provision for credit losses ($1.9M), and deferred income tax provision ($2.8M). Investing activities provided $52.1 million, mainly from proceeds from maturities, prepayments and calls of securities ($42.3M) offset by net decrease in loans ($19.6M). Financing activities used $100.6 million, primarily from net decrease in deposits ($37.9M), principal payments on long-term debt ($51.1M), and cash dividends paid on common stock ($12.5M). The balance sheet shows total assets of $2.24 billion, including loans net of allowance for credit losses of $1.69 billion, investment securities of $232.3 million, and cash and cash equivalents of $21.6 million. Total liabilities were $1.97 billion, with total deposits of $1.84 billion and long-term debt of $104.4 million. Shareholders' equity was $273.9 million.
The company faces risks including economic conditions affecting loan repayment, interest rate fluctuations impacting profitability, competitive pressures in the banking industry, and regulatory changes. Management notes that weakness in the economy and real estate market, particularly in LCNB's geographic footprint, may negatively affect financial condition and earnings. The company also faces risks related to cybersecurity, technology adoption, and the ability to attract and retain employees. LCNB must comply with extensive banking regulations and capital requirements, and failure to meet these requirements could adversely affect the business. The company's ability to pay dividends is subject to regulatory restrictions and depends on the Bank's earnings, capital levels, and financial condition.