About LCNB

LCNB Corp. (LCNB) operates as the holding company for LCNB National Bank that provides full banking services, including wealth management and investment services, to customers primarily in Southwestern Ohio and Franklin County Ohio and contiguous areas. Loan products offered include commercial and industrial loans, commercial and residential real estate loans, agricultural loans, construction loans, various types of consumer loans, and Small Business Administration loans. The bank’s residential mortgage lending activities consist primarily of loans for purchasing or refinancing personal residences, home equity lines of credit, and loans for commercial or consumer purposes secured by residential mortgages. Consumer lending activities include automobile, boat, home improvement and personal loans. The Wealth Management Division of the bank provides complete trust administration, estate settlement, and fiduciary services and also offers investment management of trusts, agency accounts, individual retirement accounts, and foundations/endowments. Security brokerage services are offered by the bank through arrangements with LPL Financial LLC, a registered broker/dealer. Licensed brokers offer a full range of investment services and products, including financial needs analysis, mutual funds, securities trading, annuities, and life insurance. Other services offered include safe deposit boxes, night depositories, cashier's checks, bank-by-mail, ATMs, cash and transaction services, debit cards, wire transfers, electronic funds transfer, utility bill collections, notary public service, cash management services, 24-hour telephone banking, PC Internet banking, mobile banking, and other services tailored for both individuals and businesses. Primary Market Area The bank considers its primary market area to consist of counties where it has a physical presence and neighboring counties, including Southwestern and South Central Ohio. As of December 31, 2022, the bank had offices, including a main office in Warren County, Ohio and branch offices in Warren, Butler, Clinton, Clermont, Fayette, Franklin, Hamilton, Montgomery, Preble, and Ross counties, Ohio; an Operations Center in Warren County, Ohio; a vacant lot in Chillicothe, Ohio for future construction; and ATMs. The Hunter Office, located in Warren County, closed at the end of the business day on January 12, 2023. Loans Commercial & Industrial Loans: LCNB’s commercial and industrial loan portfolio consists of loans for various purposes, including for example, loans to fund working capital requirements (such as inventory and receivables financing) and purchases of machinery and equipment. LCNB offers a variety of commercial and industrial loan arrangements, including term loans, balloon loans, and lines of credit. Commercial & industrial loans can have a fixed or variable rate, with maturities ranging from one to ten years. Commercial & industrial loans are offered to businesses and professionals for short and medium terms on both a collateralized and uncollateralized basis. Commercial & industrial loans typically are underwritten on the basis of the borrower’s ability to make repayment from the cash flow of the business. Collateral, when obtained, may include liens on furniture, fixtures, equipment, inventory, receivables, or other assets. As a result, such loans involve complexities, variables, and risks that require thorough underwriting and more robust servicing than other types of loans. This category includes PPP loans that were authorized under the CARES Act and updated by the Economic Aid Act. Commercial, Secured by Real Estate Loans: Commercial real estate loans include loans secured by a variety of commercial, retail and office buildings, religious facilities, hotels, multifamily (more than four-family) residential properties, construction and land development loans, and other land loans. Mortgage loans secured by owner-occupied agricultural property are included in this category. Commercial real estate loan products generally amortize over five to twenty-five years and are payable in monthly principal and interest installments. Some have balloon payments due within one to ten years after the origination date. Residential Real Estate Loans: Residential real estate loans include loans secured by first or second mortgage liens on one to four-family residential properties. Home equity lines of credit are included in this category. First and second mortgage loans are generally amortized over five to thirty years with monthly principal and interest payments. Home equity lines of credit generally have a five year or less draw period with interest only payments followed by a repayment period with monthly payments based on the amount outstanding. LCNB offers both fixed and adjustable rate mortgage loans. Consumer Loans: LCNB’s portfolio of consumer loans generally includes secured and unsecured loans to individuals for household, family and other personal expenditures. Secured loans include loans to fund the purchase of automobiles, recreational vehicles, boats, and similar acquisitions. Agricultural Loans: LCNB’s portfolio of agricultural loans includes loans for financing agricultural production or for financing the purchase of equipment used in the production of agricultural products. LCNB’s agricultural loans are generally secured by farm machinery, livestock, crops, vehicles, or other agricultural-related collateral. Investment Portfolio As of December 31, 2022, the company’s investment portfolio included U.S. treasury notes; U.S. agency notes; corporate bonds; the U.S. agency mortgage-backed securities; and municipal securities (non-taxable and taxable). Supervision and Regulation The bank is subject to the provisions of the National Bank Act. The bank is subject to primary supervision, regulation and examination by the OCC. The bank is also subject to the rules and regulations of the Board of Governors of the Federal Reserve System and the FDIC. The company and the bank and other subsidiaries are ‘affiliates’ within the meaning of the Federal Reserve Act. The bank is FDIC insured. Further, the bank’s authority to extend credit to the company’s directors, executive officers and principal shareholders, including their immediate family members, corporations and other entities that they control, is subject to the restrictions and additional requirements of the Federal Reserve Act and Regulation O promulgated thereafter. LCNB is also subject to certain consumer laws and regulations that are designed to protect consumers in transactions with banks. While the following list is not exhaustive, these laws and regulations include the Truth in Lending Act, the Truth in Savings Act, the Electronic Funds Transfer Act, the Expedited Funds Availability Act, the Equal Credit Opportunity Act, The Fair and Accurate Credit Transactions Act, The Real Estate Settlement Procedures Act, and the Fair Housing Act, among others. History LCNB Corp., an Ohio corporation, was founded in 1877. The company was incorporated in 1998.