LCNB Corp. Reports 26.5% Increase in Q2 Net Income to $7.5 Million

LCNB Corp. reported a net income of $7.5 million for the second quarter of 2026, reflecting a 26.5% increase from $5.9 million in the same period of 2025. For the first half of 2026, net income reached $11.9 million, up from $10.5 million year-over-year. Earnings per share for the quarter were $0.53, compared to $0.41 in the prior year, while the six-month figures showed earnings per share of $0.84, up from $0.74. The increase in profitability was primarily driven by a rise in net interest income, which totaled $19.8 million for the quarter and $38.6 million for the first half, compared to $17.5 million and $33.8 million, respectively, in 2025.

The company experienced a notable change in its provision for credit losses, which increased to $276,000 for the second quarter and $2.6 million for the first half of 2026, compared to $18,000 and $215,000 in the same periods of 2025. This increase was attributed to specific reserves related to four participated loans identified during the first quarter. Non-interest income for the second quarter was $5.4 million, slightly higher than $5.2 million in the previous year, while the first half saw a decrease to $10.0 million from $10.5 million, primarily due to lower net gains from loan sales and service charges.

On the operational front, LCNB's total assets decreased to $2.22 billion as of June 30, 2026, down from $2.24 billion at the end of 2025. Total loans, net of allowances for credit losses, also saw a slight decline to $1.69 billion from $1.69 billion. The company reported a decrease in total deposits to $1.82 billion, down from $1.84 billion, with noninterest-bearing deposits increasing to $478.6 million from $466.1 million. The bank's capital ratios remained strong, with a Common Equity Tier 1 Capital ratio of 11.62% as of June 30, 2026.

Strategically, LCNB has been focusing on optimizing its funding structure, which has led to a reduction in interest-bearing liabilities. The company has also been actively managing its loan portfolio, with a significant portion of its loans secured by commercial real estate, which accounted for approximately 64.2% of total loans. The bank's management continues to monitor economic conditions and borrower performance closely, ensuring that the allowance for credit losses remains adequate.

Looking ahead, LCNB anticipates entering into a definitive purchase agreement for a proposed debt financing of $25 million, which will be used to repay existing long-term debt and for general corporate purposes. The company remains committed to maintaining its strong capital position and liquidity, with sufficient resources to meet its operational needs and support future growth initiatives.