LCNB Corp. Reports Financial Results for the Three and Six Months Ended June 30, 2026

Press Release LCNB Corp. Reports Financial Results for the Three and Six Months Ended June 30, 2026 Company Release - 7/16/2026 Second quarter 2026, net interest margin increased 52 basis points year-over-year to 3.99%, driving record quarterly net interest income of $19.8 million, a 12.8% year-over-year increase Record second quarter 2026 net income of $7.5 million; quarterly earnings per share rose 29% year-over-year to $0.53; Return on Average Assets improved to 1.34% Tangible book value per share increased 10.4% year-over-year to $12.90 per share at June 30, 2026 LCNB Wealth Management assets increased 15.3% year-over-year to a record $1.7 billion at June 30, 2026, producing fiduciary income of $2.7 million for the 2026 second quarter LCNB Corp. ("LCNB") (NASDAQ: LCNB) today announced financial results for the three and six months ended June 30, 2026. Commenting on the financial results, LCNB Chief Executive Officer, Eric Meilstrup said, “I am pleased to report that LCNB achieved record second quarter financial results across key performance measures, including net interest income, net income, and earnings per diluted share. In addition, we ended the quarter with continued net interest margin expansion, disciplined expense management, solid year-over-year growth at LCNB Wealth Management, and an ROAA of 1.34%. These results reflect the strength of our team, the positive contribution of our recent acquisitions, and the value LCNB continues to provide to the customers, communities, and shareholders we serve.” Mr. Meilstrup continued, “As expected, we earned back the tangible book value dilution from the November 2023 Cincinnati Federal acquisition during the first half of 2026. This milestone reflects the strong earnings performance generated since the acquisition, which contributed to a 10.4% year-over-year increase in tangible book value. At the same time, we continue to invest in our platform to support growth, enhance our operations and services, and improve efficiency. During the second quarter, we expanded our banking team in the Columbus market and added talent to our wealth management team in the Cincinnati market, further strengthening our ability to serve customers and support future growth opportunities. These additions demonstrate our commitment to expanding LCNB's presence in attractive markets while continuing to deliver high-quality service and trusted financial advice." “We remain focused on the fundamentals that create long-term shareholder value including profitable growth, disciplined risk management, strong asset quality, and deeper customer relationships. During the quarter, we originated approximately $123 million in new loans, while asset quality remained at historically strong levels. LCNB Wealth Management also continues to be an important component of our multi-year growth strategy and helps differentiate LCNB from many community banks in our markets. Looking ahead to the second half of 2026, we remain committed to the core principles that sustain long-term shareholder value. We are executing well, building momentum across our platform, and believe 2026 is shaping up to be a strong year of profitable growth and value creation,” concluded Mr. Meilstrup. Income Statement Net income for the 2026 second quarter was $7.5 million, compared to $5.9 million for the same period in 2025. Earnings per basic and diluted share for the 2026 second quarter were $0.53, compared to $0.41 for the same period in 2025. Net income for the six-month period ended June 30, 2026 was $11.9 million, compared to $10.5 million for the same period last year. Earnings per basic and diluted share for the six-month period ended June 30, 2026 were $0.84, compared to $0.74 for the same period last year. Net interest income for the three months ended June 30, 2026, was a record $19.8 million, compared to $17.5 million for the same period in 2025. Net interest income for the six-month period ended June 30, 2026 was $38.6 million, as compared to $33.8 million in the same period last year. The year-over-year growth in net interest income was primarily due to an increase in the average yield on earnings assets, a reduction in interest-bearing liabilities, and a decrease in the average rate paid on interest-bearing liabilities. For the 2026 second quarter, LCNB’s tax equivalent net interest margin was 3.99%, compared to 3.47% for the same period in 2025. The net interest margin for the six-month period ended June 30, 2026 was 3.91%, as compared to 3.36% in the same period last year. Non-interest income for the three months ended June 30, 2026, was $5.4 million, compared to $5.2 million for the same period in 2025. The increase in non-interest income for the three-month period was primarily due to higher fiduciary income, partially offset by lower gains on sales of loans. For the six months ended June 30, 2026, non-interest income decreased 4.0% to $10.0 million, compared to $10.5 million for the same period last year. The decrease in non-interest income for the six-month period was primarily due to lower gains on the sale of mortgage loans, reflecting the Bank's strategy of retaining a greater portion of originated residential mortgages to support loan growth. Non-interest expense for the three months ended June 30, 2026, was $15.7 million, compared to $15.6 million for the same period in 2025. The $0.1 million increase was primarily due to higher salaries and employee benefits, computer maintenance and supplies, and contracted services expenses, partially offset by lower intangible asset amortization, reduced merger-related expenses, and lower net FDIC insurance premiums. For the six months ended June 30, 2026, non-interest expense was $0.2 million higher than the comparable period in 2025, partially due to increases in salaries and employee benefits and contracted services expense, which were partially offset by lower intangible asset amortization, reduced FDIC insurance premiums, and lower merger-related expenses. Capital Allocation For the three months ended June 30, 2026, LCNB paid $0.22 per share in dividends. Year-to-date, LCNB has paid $0.44 per share in dividends. Balance Sheet Total assets at June 30, 2026, decreased 3.6%, to $2.22 billion, from $2.31 billion at June 30, 2025. Net loans at June 30, 2026 were $1.69 billion, a decrease of 0.9%, or $14.9 million, from June 30, 2025. During the quarter ended June 30, 2026, the Company originated $73.1 million in commercial and commercial real estate loans and $40.1 million in residential mortgage loans. During the same quarter, the Company sold approximately $20.2 million of residential mortgage loans into the secondary market, generating gains of $420 thousand that were recognized in second quarter non-interest income, compared to $88.8 million in total loans originated and $30.0 million of loans sold into the secondary market for the same period last year, which generated $615 thousand of gains and benefited second quarter 2025 non-interest income. Loans held for sale totaled $3.5 million at June 30, 2026, compared to $6.0 million at June 30, 2025, and were primarily composed of loans scheduled to be sold to secondary market investors. Total deposits at June 30, 2026 decreased 5.2%, to $1.82 billion, compared to $1.92 billion at June 30, 2025. The net change includes the decline in interest-bearing balances which reflects the strategic runoff of higher-cost certificates of deposit and IRA balances as part of the Company's funding optimization strategy, partially offset by a modest growth in noninterest‑bearing demand deposit accounts. At June 30, 2026, shareholders' equity was $280.6 million, compared to $263.5 million at June 30, 2025. On a per-share basis, shareholders' equity at June 30, 2026 was $19.69, compared to $18.59 at June 30, 2025. At June 30, 2026, tangible shareholders' equity was $183.8 million, compared to $165.8 million at June 30, 2025. The 10.9% year-over-year increase in tangible shareholders' equity was primarily from higher retained earnings and an improvement in the unrealized losses on the available-for-sale investment portfolio. On a per-share basis, tangible shareholders' equity was $12.90 at June 30, 2026, compared to $11.69 at June 30, 2025. Assets Under Management Total assets managed at June 30, 2026, were $4.25 billion, compared to $4.18 billion at June 30, 2025. The year-over-year increase in total assets managed was due to an increase in the fair value of trust and investments and investment services partially offset by lower LCNB total assets, mortgage loans serviced and cash management. Trust and investments and brokerage accounts increased due to a higher number of new LCNB Wealth Management customer accounts and an increase in the fair value of managed assets. Asset Quality For the 2026 second quarter, LCNB recorded a provision for credit losses of $276 thousand, compared to a provision for credit losses of $18 thousand for the 2025 second quarter. For the six months ended June 30, 2026, LCNB recorded a total provision for credit losses of $2.6 million, compared to a total provision for credit losses of $215 thousand for the six months ended June 30, 2025. Net recoveries for the 2026 second quarter were $1 thousand, or 0.00% of average loans, compared to net charge-offs of $79 thousand, or 0.02% of average loans, annualized, for the same period in 2025. For the 2026 six-month period, net charge-offs were $2.7 million, or 0.32% of average loans, annualized, compared to net charge-offs of $118 thousand, or 0.01% of average loans, for the 2025 six-month period. The net increase in charge‑offs during the 2026 six-month period primarily reflected the resolution of two unrelated credits within the logistics sector, an industry that has experienced elevated stress in recent periods across the broader economy. Total nonperforming loans, which include nonaccrual loans and loans past due 90 days or more and still accruing interest, were $5.8 million, or 0.34% of total loans, at June 30, 2026, compared to $4.8 million, or 0.28% of total loans, at June 30, 2025. The year-over-year increase in nonperforming loans was primarily attributable to the addition of three commercial loans that were placed on nonaccrual status since the beginning of 2026. The nonperforming assets to total assets ratio was 0.26% at June 30, 2026, compared to 0.21% at June 30, 2025. About LCNB Corp. LCNB Corp. is a financial holding company headquartered in Lebanon, Ohio. Through its subsidiary, LCNB National Bank (the “Bank”), it serves customers and communities in Southwest and South-Central Ohio. A financial institution with a long tradition for building strong relationships with customers and communities, the Bank offers convenient banking locations in Butler, Clermont, Clinton, Fayette, Franklin, Hamilton, Montgomery, Preble, Ross, and Warren Counties, Ohio. The Bank continually strives to exceed customer expectations and provides an array of services for all personal and business banking needs including checking, savings, online banking, personal lending, business lending, agricultural lending, business support, deposit and treasury, investment services, trust and IRAs and stock purchases. LCNB Corp. common shares are traded on the NASDAQ Capital Market Exchange® under the symbol “LCNB.” Learn more about LCNB Corp. at www.lcnb.com Forward-Looking Statements Certain statements made in this news release 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”, “plan”, and similar expressions. Please refer to LCNB’s Annual Report on Form 10-K for the year ended December 31, 2025, as well as its other filings with the SEC, for a more detailed discussion of risks, uncertainties and factors that could cause actual results to differ from those discussed in the forward-looking statements. 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 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 to both bank and nonbank financial institutions; 5. changes in the interest rate environment, either by interest rate increases or decreases, 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, increased competition could adversely affect LCNB’s operating results; 7. changes in or instability regarding regulations and government policies affecting bank holding companies and their subsidiaries, including changes in monetary policies, could negatively impact LCNB’s operating results; 8. LCNB may experience difficulties growing loan and deposit balances; 9. United States trade relations with foreign countries could negatively impact the financial condition of LCNB's customers, which could adversely affect LCNB's operating results and financial condition; 10. global and/or geopolitical relations and/or conflicts could create financial market uncertainty and have negative impacts on commodities, currency, and stability, which could adversely affect LCNB's operating results and financial condition; 11. difficulties with technology or data security breaches, including cyberattacks or widespread outages, could negatively affect LCNB's ability to conduct business and its relationships with customers, vendors, and others; 12. adverse weather events and natural disasters and global and/or national epidemics could negatively affect LCNB’s customers given its concentrated geographic scope, which could impact LCNB’s operating results; and 13. government intervention in the U.S. financial system, including the effects of legislative, tax, accounting, and regulatory actions and reforms, including, the Jumpstart Our Business Startups Act, the Consumer Financial Protection Bureau, the capital ratios of Basel III as adopted by the federal banking authorities, changes in deposit insurance premium levels, and any such future regulatory actions or reforms. Forward-looking statements made herein reflect management's expectations as of the date such statements are made. Such information is provided to assist shareholders and potential investors in understanding current and anticipated financial operations of LCNB and is included pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. LCNB undertakes no obligation to update any forward-looking statement to reflect events or circumstances that arise after the date such statements are made. LCNB Corp. and Subsidiaries Financial Highlights (Dollars in thousands, except per share amounts) (Unaudited) Three Months Ended Six Months Ended 6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 6/30/2026 6/30/2025 Condensed Income Statement Interest income $ 26,332 25,430 25,187 26,305 25,939 51,762 51,255 Interest expense 6,541 6,583 6,931 8,179 8,398 13,124 17,415 Net interest income 19,791 18,847 18,256 18,126 17,541 38,638 33,840 Provision for credit losses 276 2,339 1,510 211 18 2,615 215 Net interest income after provision for credit losses 19,515 16,508 16,746 17,915 17,523 36,023 33,625 Non-interest income 5,353 4,693 5,601 5,704 5,248 10,046 10,470 Non-interest expense 15,675 15,880 15,388 15,145 15,567 31,555 31,376 Income before income taxes 9,193 5,321 6,959 8,474 7,204 14,514 12,719 Provision for income taxes 1,699 877 1,303 1,538 1,285 2,576 2,191 Net income $ 7,494 4,444 5,656 6,936 5,919 11,938 10,528 Supplemental Income Statement Information Accretion income on acquired loans $ 1,290 659 816 904 1,174 1,949 1,866 Tax-equivalent net interest income 19,829 18,886 18,297 18,169 17,584 38,715 33,922 Pre-provision, pre-tax net income 9,469 7,660 8,469 8,685 7,222 17,129 12,934 Per Share Data Dividends per share $ 0.22 0.22 0.22 0.22 0.22 0.44 0.44 Basic earnings per common share $ 0.53 0.31 0.40 0.49 0.41 0.84 0.74 Diluted earnings per common share $ 0.53 0.31 0.40 0.49 0.41 0.84 0.74 Book value per share $ 19.69 19.36 19.30 19.02 18.59 19.69 18.59 Tangible book value per share $ 12.90 12.55 12.45 12.15 11.69 12.90 11.69 Weighted average common shares outstanding: Basic 14,157,834 14,125,191 14,106,778 14,097,414 14,085,764 14,141,601 14,070,417 Diluted 14,157,834 14,125,191 14,106,778 14,097,414 14,085,764 14,141,601 14,070,417 Shares outstanding at period end 14,254,091 14,245,849 14,193,577 14,186,204 14,175,241 14,254,091 14,175,241 Selected Financial Ratios Return on average assets 1.34 % 0.80 % 1.01 % 1.21 % 1.04 % 1.07 % 0.93 % Return on average equity 10.78 % 6.52 % 8.22 % 10.33 % 9.09 % 8.67 % 8.22 % Return on average tangible common equity 16.51 % 10.06 % 12.78 % 16.29 % 14.54 % 13.33 % 13.26 % Dividend payout ratio 41.51 % 70.97 % 55.00 % 44.90 % 53.66 % 52.38 % 59.46 % Net interest margin (tax equivalent) 3.99 % 3.83 % 3.69 % 3.57 % 3.47 % 3.91 % 3.36 % Efficiency ratio (tax equivalent) 62.25 % 67.35 % 64.39 % 63.44 % 68.18 % 64.71 % 70.68 % Selected Balance Sheet Items Cash and cash equivalents $ 24,855 29,181 21,614 35,865 49,778 Debt and equity securities 267,251 276,913 280,565 292,604 302,935 Loans: Commercial and industrial $ 96,280 100,477 104,013 107,925 110,528 Commercial, secured by real estate 1,090,836 1,090,718 1,100,203 1,083,748 1,110,875 Residential real estate 482,518 476,863 469,574 454,918 459,473 Consumer 14,983 15,834 16,928 17,748 18,452 Agricultural 15,938 14,561 15,666 15,262 14,413 Other, including deposit overdrafts 174 273 210 267 171 Deferred net origination fees (1,159 ) (1,052 ) (1,063 ) (840 ) (902 ) Loans, gross 1,699,569 1,697,674 1,705,531 1,679,028 1,713,010 Less allowance for credit losses 13,606 13,372 13,704 12,170 12,108 Loans, net $ 1,685,963 1,684,302 1,691,827 1,666,858 1,700,902 Loans held for sale $ 3,508 3,438 1,718 4,018 6,026 Three Months Ended Six Months Ended 6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 6/30/2026 6/30/2025 Selected Balance Sheet Items, continued Allowance for Credit Losses on Loans: Allowance for credit losses, beginning of period $ 13,372 13,704 12,170 12,108 12,124 Provision for credit losses on loans 233 2,398 1,520 231 63 Losses charged off (36 ) (2,766 ) (67 ) (193 ) (95 ) Recoveries 37 36 81 24 16 Allowance for credit losses, end of period $ 13,606 13,372 13,704 12,170 12,108 Total earning assets $ 1,976,036 1,986,777 1,993,785 1,983,606 2,034,540 Goodwill 90,310 90,310 90,310 90,310 90,310 Core deposit intangibles 6,478 6,705 6,931 7,161 7,408 Mortgage servicing rights 2,021 2,188 2,340 2,519 2,698 Other non-earning assets 148,871 151,856 147,403 160,769 172,844 Total non-earning assets 247,679 251,059 246,984 260,759 273,260 Total assets 2,223,715 2,237,836 2,240,769 2,244,365 2,307,800 Total deposits 1,819,186 1,838,793 1,840,355 1,849,082 1,919,372 Long-term debt 103,836 104,133 104,428 104,717 105,000 Total shareholders’ equity 280,617 275,816 273,929 269,870 263,474 Equity to assets ratio 12.62 % 12.33 % 12.22 % 12.02 % 11.42 % Loans to deposits ratio 93.42 % 92.33 % 92.67 % 90.80 % 89.25 % Tangible common equity (TCE) $ 183,829 178,801 176,689 172,399 165,756 Tangible common assets (TCA) 2,126,927 2,140,821 2,143,529 2,146,894 2,210,082 TCE/TCA 8.64 % 8.35 % 8.24 % 8.03 % 7.50 % Selected Average Balance Sheet Items Cash and cash equivalents $ 28,893 35,116 29,395 38,466 34,256 31,978 35,063 Debt and equity securities 248,323 278,950 285,810 298,341 302,475 251,424 303,373 Loans, including loans held for sale $ 1,706,541 1,707,948 1,675,449 1,706,281 1,718,959 1,707,241 1,720,418 Less allowance for credit losses on loans 13,376 12,812 12,186 12,099 12,117 13,095 12,057 Net loans $ 1,693,165 1,695,136 1,663,263 1,694,182 1,706,842 1,694,145 1,708,361 Total earning assets $ 1,991,514 2,000,595 1,968,188 2,017,294 2,031,261 1,996,826 2,033,996 Goodwill 90,310 90,310 90,310 90,310 90,310 90,310 90,310 Core deposit intangibles 6,589 6,816 7,043 7,275 7,555 6,702 7,704 Mortgage servicing rights 2,189 2,340 2,520 2,699 2,908 2,264 3,003 Other non-earning assets 147,961 153,437 153,528 159,328 158,251 149,349 159,138 Total non-earning assets 247,049 252,903 253,401 259,612 259,024 248,625 260,155 Total assets 2,238,563 2,253,498 2,221,589 2,276,906 2,290,285 2,245,451 2,294,151 Total deposits 1,834,710 1,846,345 1,822,412 1,884,748 1,906,305 1,840,496 1,901,402 Short-term borrowings — 4,795 — 52 63 2,384 67 Long-term debt 104,080 104,376 104,664 104,951 104,701 104,227 115,933 Total shareholders’ equity 278,949 276,362 272,856 266,489 261,193 277,663 258,173 Equity to assets ratio 12.46 % 12.26 % 12.28 % 11.70 % 11.40 % 12.37 % 11.25 % Loans to deposits ratio 93.00 % 92.50 % 91.94 % 90.53 % 90.17 % 92.75 % 90.48 % Asset Quality Net charge-offs (recoveries) $ (1 ) 2,730 (14 ) 169 79 2,729 118 Other real estate owned — — — — — Non-accrual loans $ 5,751 3,227 1,794 1,793 4,500 Loans past due 90 days or more and still accruing 98 136 530 163 271 Total nonperforming loans 5,848 3,363 2,324 1,956 4,771 Net charge-offs to average loans 0.00 % 0.65 % 0.00 % 0.04 % 0.02 % 0.32 % 0.01 % Allowance for credit losses on loans to total loans 0.80 % 0.79 % 0.80 % 0.72 % 0.71 % Nonperforming loans to total loans 0.34 % 0.20 % 0.14 % 0.12 % 0.28 % Nonperforming assets to total assets 0.26 % 0.15 % 0.10 % 0.09 % 0.21 % Three Months Ended Six Months Ended 6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 6/30/2026 6/30/2025 Assets Under Management LCNB Corp. total assets 2,223,715 2,237,836 2,240,769 2,244,365 2,307,800 Trust and investments (fair value) 1,148,515 1,081,558 1,053,887 1,041,270 990,699 Mortgage loans serviced 308,073 325,133 333,518 341,548 348,003 Cash management 37,175 39,979 10,935 73,002 62,737 Investment services (fair value) 531,900 491,890 504,123 494,947 466,299 Total assets managed $ 4,249,378 4,176,396 4,143,232 4,195,132 4,175,538 Three Months Ended June 30, Three Months Ended March 31, 2026 2025 2026 Average Interest Average Average Interest Average Average Interest Average Outstanding Earned/ Yield/ Outstanding Earned/ Yield/ Outstanding Earned/ Yield/ Balance Paid Rate Balance Paid Rate Balance Paid Rate Loans(1) $ 1,706,541 24,345 5.72 % 1,718,959 23,838 5.56 % 1,707,948 23,433 5.56 % Interest-bearing demand deposits 9,524 96 4.04 % 9,573 140 5.87 % 10,987 107 3.95 % Interest-bearing time deposits 2,896 26 3.60 % 254 6 9.47 % 2,710 25 3.74 % Federal Reserve Bank stock 6,405 98 6.14 % 6,405 98 6.14 % 6,405 94 5.95 % Federal Home Loan Bank stock 20,710 383 7.42 % 20,710 447 8.66 % 20,710 392 7.68 % Investment securities: Equity securities 5,099 33 2.60 % 5,053 36 2.86 % 5,104 37 2.94 % Debt securities, taxable 224,414 1,207 2.16 % 251,920 1,213 1.93 % 230,649 1,196 2.10 % Debt securities, non-taxable(2) 15,925 182 4.58 % 18,387 204 4.45 % 16,082 185 4.67 % Total earnings assets 1,991,514 26,370 5.31 % 2,031,261 25,982 5.13 % 2,000,595 25,469 5.16 % Non-earning assets 260,436 271,147 265,726 Allowance for credit losses (13,387 ) (12,123 ) (12,823 ) Total assets $ 2,238,563 2,290,285 2,253,498 Interest-bearing demand and money market deposits $ 648,548 2,197 1.36 % 603,066 2,374 1.58 % 682,183 2,465 1.47 % Savings deposits 355,129 220 0.25 % 363,679 199 0.22 % 356,622 207 0.24 % IRA and time certificates 351,311 2,803 3.20 % 466,065 4,546 3.91 % 343,061 2,609 3.08 % Short-term borrowings — — — % 63 1 6.37 % 4,795 46 3.89 % Long-term debt 104,080 1,321 5.09 % 104,701 1,278 4.90 % 104,376 1,256 4.88 % Total interest-bearing liabilities 1,459,068 6,541 1.80 % 1,537,574 8,398 2.19 % 1,491,037 6,583 1.79 % Demand deposits 479,722 473,495 464,479 Other liabilities 20,824 18,023 21,620 Equity 278,949 261,193 276,362 Total liabilities and equity $ 2,238,563 2,290,285 2,253,498 Net interest rate spread(3) 3.51 % 2.94 % 3.37 % Net interest income and net interest margin on a taxable-equivalent basis(4) 19,829 3.99 % 17,584 3.47 % 18,886 3.83 % Ratio of interest-earning assets to interest-bearing liabilities 136.49 % 132.11 % 134.17 % (1) Average outstanding balance includes non-accrual loans and loans held for sale (2) Income from tax-exempt securities is included in interest income on a taxable-equivalent basis. Interest income has been divided by a factor comprised of the complement of the incremental tax rate of 21%. (3) The net interest spread is the difference between the average rate on total interest-earning assets and interest-bearing liabilities. (4) The net interest margin is the taxable-equivalent net interest income divided by average interest-earning assets. For the Six Months Ended June 30, 2026 2025 Average Interest Average Average Interest Average Outstanding Earned/ Yield/ Outstanding Earned/ Yield/ Balance Paid Rate Balance Paid Rate Loans(1) $ 1,707,241 47,778 5.64 % 1,720,418 47,019 5.51 % Interest-bearing demand deposits 11,036 203 3.71 % 9,953 272 5.51 % Interest-bearing time deposits 2,816 51 3.65 % 252 6 4.80 % Federal Reserve Bank stock 6,405 192 6.05 % 6,405 192 6.05 % Federal Home Loan Bank stock 20,710 775 7.55 % 20,710 915 8.91 % Investment securities: Equity securities 5,101 70 2.77 % 5,048 75 3.00 % Debt securities, taxable 227,514 2,403 2.13 % 253,434 2,469 1.96 % Debt securities, non-taxable(2) 16,003 367 4.62 % 17,776 389 4.41 % Total earnings assets 1,996,826 51,839 5.24 % 2,033,996 51,337 5.09 % Non-earning assets 261,731 272,217 Allowance for credit losses (13,106 ) (12,062 ) Total assets $ 2,245,451 2,294,151 Interest-bearing demand and money market deposits $ 665,272 4,662 1.41 % 586,860 4,711 1.62 % Savings deposits 355,871 426 0.24 % 364,771 394 0.22 % IRA and time certificates 347,209 5,413 3.14 % 481,536 9,573 4.01 % Short-term borrowings 2,384 46 3.89 % 67 2 6.02 % Long-term debt 104,227 2,577 4.99 % 115,933 2,735 4.76 % Total interest-bearing liabilities 1,474,963 13,124 1.79 % 1,549,167 17,415 2.27 % Demand deposits 472,143 468,235 Other liabilities 20,682 18,576 Equity 277,663 258,173 Total liabilities and equity $ 2,245,451 2,294,151 Net interest rate spread(3) 3.44 % 2.82 % Net interest income and net interest margin on a taxable-equivalent basis(4) 38,715 3.91 % 33,922 3.36 % Ratio of interest-earning assets to interest-bearing liabilities 135.38 % 131.30 % (1) Average outstanding balance includes non-accrual loans and loans held for sale (2) Income from tax-exempt securities is included in interest income on a taxable-equivalent basis. Interest income has been divided by a factor comprised of the complement of the incremental tax rate of 21%. (3) The net interest spread is the difference between the average rate on total interest-earning assets and interest-bearing liabilities. (4) The net interest margin is the taxable-equivalent net interest income divided by average interest-earning assets. LCNB CORP. AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited, dollars in thousands) June 30, 2026 December 31, 2025 Unaudited Audited ASSETS: Cash and due from banks $ 19,158 18,353 Interest-bearing demand deposits 5,697 3,261 Total cash and cash equivalents 24,855 21,614 Interest-bearing time deposits 3,450 2,710 Investment securities: Equity securities with a readily determinable fair value, at fair value 1,452 1,433 Equity securities without a readily determinable fair value, at cost 3,666 3,666 Debt securities, available-for-sale, at fair value 215,769 232,271 Debt securities, held-to-maturity, at cost, net of allowance for credit losses of $11 at June 30, 2026 and December 31, 2025 15,799 16,080 Federal Reserve Bank stock, at cost 6,405 6,405 Federal Home Loan Bank stock, at cost 20,710 20,710 Loans held-for-sale 3,508 1,718 Loans, net of allowance for credit losses of $13,606 and $13,704 at June 30, 2026 and December 31, 2025, respectively 1,685,963 1,691,827 Premises and equipment, net 39,781 39,196 Operating lease right-of-use assets 6,239 6,475 Goodwill 90,310 90,310 Core deposit and other intangibles, net 8,499 9,271 Bank-owned life insurance 56,149 55,424 Interest receivable 7,765 7,968 Other assets, net 33,395 33,691 TOTAL ASSETS $ 2,223,715 2,240,769 LIABILITIES: Deposits: Noninterest-bearing $ 478,568 466,094 Interest-bearing 1,340,618 1,374,261 Total deposits 1,819,186 1,840,355 Long-term debt 103,836 104,428 Operating lease liabilities 6,641 6,877 Accrued interest and other liabilities 13,435 15,180 TOTAL LIABILITIES 1,943,098 1,966,840 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 17,470,548 and 17,409,085 shares at June 30, 2026 and December 31, 2025, respectively; outstanding 14,254,091 and 14,193,577 shares at June 30, 2026 and December 31, 2025, respectively 188,868 188,212 Retained earnings 157,609 151,938 Treasury shares at cost, 3,216,457 and 3,215,508 shares at June 30, 2026 and December 31, 2025, respectively (56,087 ) (56,071 ) Accumulated other comprehensive loss, net of taxes (9,773 ) (10,150 ) TOTAL SHAREHOLDERS' EQUITY 280,617 273,929 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 2,223,715 2,240,769 LCNB CORP. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Dollars in thousands, except per share data) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 INTEREST INCOME: Interest and fees on loans $ 24,345 23,838 47,778 47,019 Dividends on equity securities: With a readily determinable fair value 12 11 23 21 Without a readily determinable fair value 20 25 46 54 Interest on debt securities: Taxable 1,207 1,213 2,403 2,469 Non-taxable 144 161 290 307 Other investments 604 691 1,222 1,385 TOTAL INTEREST INCOME 26,332 25,939 51,762 51,255 INTEREST EXPENSE: Interest on deposits 5,220 7,119 10,501 14,678 Interest on long-term debt 1,321 1,278 2,577 2,735 Interest on short-term borrowings — 1 46 2 TOTAL INTEREST EXPENSE 6,541 8,398 13,124 17,415 NET INTEREST INCOME 19,791 17,541 38,638 33,840 PROVISION FOR CREDIT LOSSES 276 18 2,615 215 NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 19,515 17,523 36,023 33,625 NON-INTEREST INCOME: Fiduciary income 2,681 2,262 5,220 4,426 Service charges and fees on deposit accounts 1,727 1,884 3,212 3,650 Bank-owned life insurance income 366 353 725 699 Net gains from sales of loans 420 615 620 1,456 Net other operating income 159 134 269 239 TOTAL NON-INTEREST INCOME 5,353 5,248 10,046 10,470 NON-INTEREST EXPENSE: Salaries and employee benefits 8,959 8,872 18,426 18,044 Occupancy expense, net 993 1,022 2,014 2,032 Equipment expenses 338 371 730 753 State financial institutions tax 447 449 894 902 Marketing 315 281 609 596 Amortization of intangibles 228 301 453 598 Computer maintenance and supplies 434 379 839 759 FDIC insurance premiums, net 327 380 602 790 Contracted services 1,058 859 2,037 1,729 Merger-related expenses — 140 — 140 Other non-interest expense 2,576 2,513 4,951 5,033 TOTAL NON-INTEREST EXPENSE 15,675 15,567 31,555 31,376 INCOME BEFORE INCOME TAXES 9,193 7,204 14,514 12,719 PROVISION FOR INCOME TAXES 1,699 1,285 2,576 2,191 NET INCOME $ 7,494 5,919 11,938 10,528 Earnings per common share: Basic $ 0.53 0.41 0.84 0.74 Diluted 0.53 0.41 0.84 0.74 Weighted average common shares outstanding: Basic 14,157,834 14,085,764 14,141,601 14,070,417 Diluted 14,157,834 14,085,764 14,141,601 14,070,417 Source: LCNB Corp.