LCNB Corp Files 2023 Annual Report on Form 10-K

TL;DR

<b>LCNB Corp has submitted its annual 10-K filing for FY2023, detailing financial performance and balance sheet information.</b>

AI Summary

LCNB CORP (LCNB) filed a Annual Report (10-K) with the SEC on March 15, 2024. LCNB Corp filed its 10-K report for the fiscal year ending December 31, 2023. The company is incorporated in Ohio (OH) and operates under SIC code 6021 (National Commercial Banks). The filing includes financial data for the fiscal years 2021, 2022, and 2023. Key financial statement elements like Common Stock, Retained Earnings, Treasury Stock, and Accumulated Other Comprehensive Income are detailed for these periods. The report references accounting standards updates, including ASU 2016-13, impacting balance sheets as of December 31, 2022.

Why It Matters

For investors and stakeholders tracking LCNB CORP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of LCNB Corp's financial health and operational performance for the fiscal year 2023, crucial for investors assessing the company's stability and growth prospects. The detailed financial data, including balance sheet components and historical comparisons, allows stakeholders to track trends and make informed investment decisions regarding LCNB Corp.

Risk Assessment

Risk Level: low — LCNB CORP shows low risk based on this filing. The filing is a standard annual report (10-K) and does not contain immediate red flags or urgent disclosures, indicating a routine update of financial information.

Analyst Insight

Review the detailed financial statements and footnotes within the 10-K to understand LCNB Corp's asset quality, profitability trends, and capital adequacy.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-03-15 — Filing Date (Filed as of date)
• 2021, 2022, 2023 — Financial Data Years (Periods covered by financial data)

Key Players & Entities

• LCNB CORP (company) — Filer name
• OH (location) — State of incorporation
• 6021 (industry_code) — Standard Industrial Classification
• 2023-12-31 (date) — Conformed period of report
• 2024-03-15 (date) — Filed as of date
• 0001074902-24-000060 (accession_number) — Accession number

FAQ

Risk Factors

• Regulatory Compliance [medium — regulatory]: The company must comply with various federal and state banking regulations, which can change and impact operations.
• Interest Rate Risk [medium — market]: Fluctuations in interest rates can affect the net interest margin and overall profitability of a commercial bank.
• Credit Risk [medium — financial]: The risk that borrowers will default on their loans, leading to financial losses for the company.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-03-15: 10-K Filing Date — Date the annual report was officially filed with the SEC.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), giving a comprehensive summary of a company's financial performance. (Provides a detailed overview of LCNB Corp's financial health and operations for the fiscal year.)

SIC Code 6021

Standard Industrial Classification code for National Commercial Banks. (Categorizes LCNB Corp within the banking industry, indicating its primary business activities.)

Key Financial Figures

• $14.76 — per share closing price on that date of $14.76 as quoted on the NASDAQ Capital Market,
• $1.0 million — tution. The penalties can be as high as $1.0 million for each day the activity continues.
• $250,000 — ions up to applicable limits (currently $250,000 per depositor). The Bank must pay ass
• $29,000,000 — CNB National Bank to LCNB Corp. totaled $29,000,000, $16,950,000, and $15,000,000, respecti
• $16,950,000 — Bank to LCNB Corp. totaled $29,000,000, $16,950,000, and $15,000,000, respectively. -8-
• $15,000,000 — . totaled $29,000,000, $16,950,000, and $15,000,000, respectively. -8- Table of Contents

Filing Documents

• lcnb-20231231.htm (10-K) — 3895KB
• lcnbform12312023xxex19lcnb.htm (EX-19) — 38KB
• lcnbform10-k12312023ex21.htm (EX-21) — 2KB
• lcnbform10-k12312023ex231.htm (EX-23.1) — 2KB
• lcnbform10-k12312023ex232.htm (EX-23.2) — 2KB
• lcnbform10-k12312023ex311.htm (EX-31.1) — 11KB
• lcnbform10-k12312023ex312.htm (EX-31.2) — 11KB
• lcnbform10-k12312023ex32.htm (EX-32) — 9KB
• lcnbform12312023ex971clawb.htm (EX-97.1) — 16KB
• lcnb-20231231_g1.jpg (GRAPHIC) — 151KB
• 0001074902-24-000060.txt (&nbsp;) — 20838KB
• lcnb-20231231.xsd (EX-101.SCH) — 98KB
• lcnb-20231231_cal.xml (EX-101.CAL) — 148KB
• lcnb-20231231_def.xml (EX-101.DEF) — 733KB
• lcnb-20231231_lab.xml (EX-101.LAB) — 1319KB
• lcnb-20231231_pre.xml (EX-101.PRE) — 1075KB
• lcnb-20231231_htm.xml (XML) — 4270KB

Risk Factors

Item 1A. Risk Factors 18

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 25

Cybersecurity

Item 1C. Cybersecurity 25

Properties

Item 2. Properties 26

Legal Proceedings

Item 3. Legal Proceedings 26

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 26

Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities. 27

[Reserved]

Item 6. [Reserved] 29

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 30

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 41

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 42 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 42

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 46

Changes in and Disagreements with Accountants on Accounting and Financial Disclosures

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosures 101

Controls and Procedures

Item 9A. Controls and Procedures 101

Other Information

Item 9B. Other Information 101

Disclosures Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosures Regarding Foreign Jurisdictions that Prevent Inspections 101

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 103

Executive Compensation

Item 11. Executive Compensation 103

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. 103

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 104

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 104

Exhibit and Financial Statement Schedules

Item 15. Exhibit and Financial Statement Schedules 105

SIGNATURES

SIGNATURES 107 -3- Table of Contents LCNB CORP. AND SUBSIDIARIES PART I Glossary of Abbreviations and Acronyms ACL Allowance for Credit Losses AFS Available-for-Sale ASC Accounting Standards Codification ASU Accounting Standards Update Bank LCNB National Bank BSA Bank Secrecy Act CARES Act Coronavirus Aid, Relief, and Economic Security Act CECL Current Expected Credit Losses CEO Chief Executive Officer CFO Chief Financial Officer CFPB Consumer Financial Protection Bureau Citizens National Citizens National Bank CFB Columbus First Bancorp, Inc. CNNB Cincinnati Bancorp, Inc. Company LCNB Corp. and its consolidated subsidiaries as a whole CRA Community Reinvestment Act of 1977 DCF Discounted Cash Flow DDA Demand Deposit Account DIF Deposit Insurance Fund Dodd-Frank Act Dodd-Frank Wall Street Reform and Consumer Protection Act Eaton National Eaton National Bank & Trust Co. Economic Aid Act Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act FASB Financial Accounting Standards Board FDIC Federal Deposit Insurance Corporation FFIEC Financial Institutions Examination Council FHLB Federal Home Loan Bank First Capital First Capital Bancshares, Inc. FOMC Federal Open Market Committee of the Federal Reserve System GAAP Generally Accepted Accounting Principles HTM Held-to-Maturity ICS Insured Cash Sweep IRA Individual Retirement Account LCNB LCNB Corp. and its consolidated subsidiaries as a whole LDA Loss Driver Analysis LGD Loss Given Default LIBOR London Interbank Offered Rate NOW Negotiable Order of Withdrawal OCC Office of the Comptroller of the Currency PCD Purchased Credit Deteriorated PD Probability of Default PPP Paycheck Protection Program SEC Securities and Exchange Commission WARM Weighted Average Remaining Maturity -4- Table of Contents LCNB CORP. AND SUBSIDIARIES

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS Certain statements made in this document regarding LCNB's financial condition, results of operations, plans, objectives, future performance and business, are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements are identified by the fact they are not historical facts and include words such as "anticipate", "could", "may", "feel", "expect", "believe", "might", "plan", and similar expressions. These forward-looking statements reflect management's current expectations based on all information available to management and its knowledge of LCNB's business and operations. Additionally, LCNB's financial condition, results of operations, plans, objectives, future performance and business are subject to risks and uncertainties that may cause actual results to differ materially. These factors include, but are not limited to: 1. the success, impact, and timing of the implementation of LCNB's business strategies; 2. LCNB's ability to integrate recent and future acquisitions may be unsuccessful, or may be more difficult, time-consuming, or costly than expected; 3. LCNB may incur increased loan charge-offs in the future and the allowance for credit losses may be inadequate; 4. LCNB may face competitive loss of customers; 5. changes in the interest rate environment, which may include further interest rate increases, may have results on LCNB's operations materially different from those anticipated by LCNB's market risk management functions; 6. changes in general economic conditions and increased competition could adversely affect LCNB's operating results; 7. changes in regulations and government policies affecting bank holding companies and their subsidiaries, including changes in monetary policies, could negatively impact LCNB's operating

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View this 10-K filing on SEC EDGAR