What changed in LCNB CORP's 2023 10-K compared to 2022?

Across the narrative sections we track, LCNB CORP (LCNB) added 210 paragraphs, removed 198, and edited 144 between the 2022 and 2023 10-K filings. The biggest movers are Item 7. Management's Discussion & Analysis (+85/−86), Item 1. Business (+59/−54), Item 1A. Risk Factors (+39/−31).

Did LCNB CORP add new Risk Factors in the 2023 10-K?

Yes — Item 1A Risk Factors shows 39 new/edited paragraphs and 31 removed paragraphs versus the 2022 10-K.

What changed in LCNB CORP's MD&A (Item 7) in 2023?

Item 7 Management's Discussion & Analysis shows 85 new/edited paragraphs and 86 removed paragraphs year-over-year. Read the side-by-side diff to see exactly which revenue, margin, and outlook commentary was rewritten.

Where does this LCNB 10-K diff come from?

The source filings are LCNB CORP's official 2022 and 2023 Form 10-K annual reports from SEC EDGAR. 10q10k.net parses each filing, aligns paragraphs by section (Item 1, 1A, 1C, 2, 3, 7, 7A), and highlights every added, removed and edited sentence side-by-side.

What changed in LCNB CORP's 10-K — 2022 vs 2023

Paragraph-level year-over-year comparison of LCNB CORP's 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+210 added−198 removedSource: 10-K (2024-03-15) vs 10-K (2023-03-15)

Top changes in LCNB CORP's 2023 10-K

210 paragraphs added · 198 removed · 144 edited across 7 sections

Item 7. Management's Discussion & Analysis+85 / −86 · 50 edited
Item 1. Business+59 / −54 · 48 edited
Item 1A. Risk Factors+39 / −31 · 26 edited
Item 5. Market for Registrant's Common Equity+13 / −12 · 8 edited
Item 6. [Reserved]+6 / −5 · 4 edited

Item 1. Business

Business — how the company describes what it does

48 edited+11 added−6 removed103 unchanged

2022 filing

2023 filing

Biggest changeAND SUBSIDIARIES Loan Portfolio The following table summarizes loan maturities and sensitivities to interest rate change at December 31, 2022 (in thousands): Commercial & Industrial Commercial, Secured by Real Estate Residential Real Estate Consumer Agricultural Other Totals Maturing in one year or less $ 18,761 34,293 3,596 1,297 5,864 81 63,892 Maturing after one year through five years 55,814 109,483 11,937 21,260 3,476 — 201,970 Maturing after five years through 15 years 45,423 385,058 129,363 5,857 733 — 566,434 Maturing after 15 years 329 407,421 161,232 — — — 568,982 Totals $ 120,327 936,255 306,128 28,414 10,073 81 1,401,278 Loans maturing beyond one year: Fixed rate $ 47,781 326,368 172,115 27,117 1,839 — 575,220 Variable rate 53,785 575,594 130,417 — 2,370 — 762,166 Totals $ 101,566 901,962 302,532 27,117 4,209 — 1,337,386 Allocation of the Allowance for Loan Losses The following table presents the allocation of the allowance for loan loss: At December 31, 2022 2021 Amount Percent of Loans in Each Category to Total Loans Amount Percent of Loans in Each Category to Total Loans (Dollars in thousands) Commercial and industrial $ 1,300 8.6 % $ 1,095 7.4 % Commercial, secured by real estate 3,609 66.9 % 3,607 64.9 % Residential real estate 624 21.8 % 665 24.4 % Consumer 86 2.0 % 105 2.5 % Agricultural 22 0.7 % 30 0.8 % Other loans, including deposit overdrafts 5 — % 4 — % Total $ 5,646 100.0 % $ 5,506 100.0 % Ratio of the allowance for loan losses to total loans outstanding 0.40 % 0.40 % Ratio of the allowance for loan losses to total non-accrual loans 1,443.99 % 371.71 % Deposits The statistical information regarding average amounts and average rates paid for the deposit categories is included in the "Distribution of Assets, Liabilities and Shareholders' Equity" table included in Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations.

Biggest changeAND SUBSIDIARIES Loan Portfolio The following table summarizes loan maturities and sensitivities to interest rate change at December 31, 2023 (in thousands): Commercial & Industrial Commercial, Secured by Real Estate Residential Real Estate Consumer Agricultural Other Totals Maturing in one year or less $ 18,820 39,071 8,113 1,824 7,035 82 74,945 Maturing after one year through five years 74,559 131,584 14,743 17,457 2,172 — 240,515 Maturing after five years through 15 years 27,162 452,686 143,891 6,319 1,793 — 631,851 Maturing after 15 years — 482,303 293,857 — — — 776,160 Totals $ 120,541 1,105,644 460,604 25,600 11,000 82 1,723,471 Loans maturing beyond one year: Fixed rate $ 45,638 349,387 223,198 23,776 3,044 — 645,043 Variable rate 56,083 717,186 229,293 — 921 — 1,003,483 Totals $ 101,721 1,066,573 452,491 23,776 3,965 — 1,648,526 Allocation of the Allowance for Credit Losses on Loans The following table presents the allocation of the allowance for credit losses on loans: At December 31, 2023 2022 2021 Amount Percent of Loans in Each Category to Total Loans Amount Percent of Loans in Each Category to Total Loans Amount Percent of Loans in Each Category to Total Loans (Dollars in thousands) Commercial and industrial $ 1,039 7.0 % $ 1,300 8.6 % $ 1,095 7.4 % Commercial, secured by real estate 5,414 64.3 % 3,609 66.9 % 3,607 64.9 % Residential real estate 3,816 26.6 % 624 21.8 % 665 24.4 % Consumer 238 1.5 % 86 2.0 % 105 2.5 % Agricultural 18 0.6 % 22 0.7 % 30 0.8 % Other loans, including deposit overdrafts — — % 5 — % 4 — % Total $ 10,525 100.0 % $ 5,646 100.0 % $ 5,506 100.0 % Ratio of the allowance for credit losses to total loans outstanding 0.61 % 0.40 % 0.40 % Ratio of the allowance for credit losses to total non-accrual loans 13,090.42 % 1,443.99 % 371.71 % Deposits The statistical information regarding average amounts and average rates paid for the deposit categories is included in the "Distribution of Assets, Liabilities and Shareholders' Equity" table included in Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations.

AND SUBSIDIARIES Consumer Financial Protection Bureau The Dodd-Frank Act created an independent federal agency called the Consumer Financial Protection Bureau, which is granted broad rulemaking, supervisory, and enforcement powers under various federal consumer financial protection laws, including the Equal Credit Opportunity Act, Truth in Lending Act, Real Estate Settlement Procedures Act, Fair Credit Reporting Act, Fair Debt Collection Act, the Consumer Financial Privacy provisions of the Gramm-Leach-Bliley Act, and certain other statutes.

Consumer Financial Protection Bureau The Dodd-Frank Act created an independent federal agency called the Consumer Financial Protection Bureau, which is granted broad rulemaking, supervisory, and enforcement powers under various federal consumer financial protection laws, including the Equal Credit Opportunity Act, Truth in Lending Act, Real Estate Settlement Procedures Act, Fair Credit Reporting Act, Fair Debt Collection Act, the Consumer Financial Privacy provisions of the Gramm-Leach-Bliley Act, and certain other statutes.

AND SUBSIDIARIES The Bank seeks to minimize the competitive effect of other financial institutions through a community banking approach that emphasizes direct customer access to the Bank's CEO and other officers in an environment conducive to friendly, informed, and courteous personal services. Management believes that the Bank is well positioned to compete successfully in its primary market area.

The Bank seeks to minimize the competitive effect of other financial institutions through a community banking approach that emphasizes direct customer access to the Bank's CEO and other officers in an environment conducive to friendly, informed, and courteous personal services. Management believes that the Bank is well-positioned to compete successfully in its primary market area.

Under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 ("FIRREA"), an FDIC-insured depository institution can be held liable for any losses incurred by the FDIC in connection with (1) the “default” of one of its FDIC-insured subsidiaries or (2) any assistance provided by the FDIC to one of its FDIC-receivers.

Under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, an FDIC-insured depository institution can be held liable for any losses incurred by the FDIC in connection with (1) the “default” of one of its FDIC-insured subsidiaries or (2) any assistance provided by the FDIC to one of its FDIC-receivers.

The ability to access and use technology is an increasingly competitive factor in the financial services industry. Technology relating to the delivery of financial services, the security and privacy of customer information, and the processing of information is evolving rapidly. LCNB must continually make technology investments to remain competitive in the financial services industry.

AND SUBSIDIARIES The ability to access and use technology is an increasingly competitive factor in the financial services industry. Technology relating to the delivery of financial services, the security and privacy of customer information, and the processing of information is evolving rapidly. LCNB must continually make technology investments to remain competitive in the financial services industry.

The table analyzing changes in interest income and expense by volume and rate is included in Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations. -15- Table of Contents LCNB CORP. AND SUBSIDIARIES Contractual maturities of debt securities at December 31, 2022, were as follows.

Consumer Laws and Regulations LCNB is also subject to certain consumer laws and regulations that are designed to protect consumers in transactions with banks.

AND SUBSIDIARIES Consumer Laws and Regulations LCNB is also subject to certain consumer laws and regulations that are designed to protect consumers in transactions with banks.

The Bank will do the same in 2023 along with some smaller scheduled group meetings at various locations within our market areas to further communicate important initiatives and information. In addition, senior management is available to participate in department and branch staff meetings upon request.

The Bank will do the same in 2024 along with some smaller scheduled group meetings at various locations within our market areas to further communicate important initiatives and information. In addition, senior management is available to participate in department and branch staff meetings upon request.

In 2020, the Bank initiated quarterly Town Hall Meetings and weekly informational emails from senior management that allowed all employees to participate and receive information. These initiatives were very valuable during the Pandemic and the Bank continues both to this day.

LCNB places a high priority on training and development and has enjoyed a long history of promoting from within the organization, as evidenced by the executive management team, which averages 22 years of tenure with LCNB.

LCNB may face competitive loss of customers; 7. 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; 8. changes in general economic conditions and increased competition could adversely affect LCNB’s operating results; 9. changes in regulations and government policies affecting bank holding companies and their subsidiaries, including changes in monetary policies, could negatively impact LCNB’s operating results; 10.

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 results; 8.

Government Agencies, there were no investments in securities of any issuer that exceeded 10% of LCNB's consolidated shareholders' equity at December 31, 2022. -16- Table of Contents LCNB CORP.

Government Agencies, there were no investments in securities of any issuer that exceeded 10% of LCNB's consolidated shareholders' equity at December 31, 2023. -16- Table of Contents LCNB CORP.

Primary Market Area The Bank considers its primary market area to consist of counties where it has a physical presence and neighboring counties, which includes Southwestern and South Central Ohio.

Primary Market Area The Bank considers its primary market area to consist of counties where it has a physical presence and neighboring counties, which includes Southwestern and South Central Ohio and Northern Kentucky.

Described below are some of the laws and regulations that apply when either LCNB Corp. or the Bank pay or paid dividends.

AND SUBSIDIARIES Described below are some of the laws and regulations that apply when either LCNB Corp. or the Bank pay or is paid dividends.

LCNB Risk Management, Inc., a captive insurance agency, was incorporated in Nevada by LCNB Corp. during the second quarter of 2017. 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.

LCNB Risk Management, Inc., a captive insurance agency, was incorporated in Nevada by LCNB Corp. during the second quarter of 2017. -5- Table of Contents LCNB CORP. AND SUBSIDIARIES 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.

“In danger of default” is defined generally as the existence of certain conditions indicating that a default is likely to occur in the absence of regulatory assistance. LCNB has never received an "in danger of default" categorization. -8- Table of Contents LCNB CORP. AND SUBSIDIARIES Dividends LCNB Corp. is a legal entity separate and distinct from the Bank.

“In danger of default” is defined generally as the existence of certain conditions indicating that a default is likely to occur in the absence of regulatory assistance. LCNB has never received an "in danger of default" categorization. Dividends LCNB Corp. is a legal entity separate and distinct from the Bank.

Monetary Policy Banks are affected by the credit policies of monetary authorities, including the Federal Reserve Board, that affect the national supply of credit.

AND SUBSIDIARIES Monetary Policy Banks are affected by the credit policies of monetary authorities, including the Federal Reserve Board, that affect the national supply of credit.

The Bank competes with other national and state banks, savings and loan associations, credit unions, finance companies, mortgage brokerage firms, realty companies with captive mortgage brokerage firms, mutual funds, insurance companies, brokerage and investment banking companies, Financial Technology or "FinTech" companies, and other financial intermediaries operating in its market and elsewhere, many of whom have substantially larger financial and managerial resources. -6- Table of Contents LCNB CORP.

As part of evolving wellness efforts, LCNB provides employees with an interactive online Health and Wellness Portal, which offers employees access to personalized one-on-one sessions with a certified health coach, trainer, licensed dietician, or registered nurse. -14- Table of Contents LCNB CORP. AND SUBSIDIARIES Fostering and enhancing a culture of open and transparent communication remains extremely important to the Bank.

As part of evolving wellness efforts, LCNB provides employees with an interactive online Health and Wellness Portal, which offers employees access to personalized one-on-one sessions with a certified health coach, trainer, licensed dietician, or registered nurse. Fostering and enhancing a culture of open and transparent communication remains extremely important to the Bank.

According to the FDIC, the proposal increases the likelihood that its designated reserve ratio will reach the required minimum level of 1.35% by the statutory deadline of September 30, 2028 and will support progress toward achieving the long-term goal of a 2% ratio.

According to the FDIC, the new assessment rate increases the likelihood that its designated reserve ratio will reach the required minimum level of 1.35% by the statutory deadline of September 30, 2028 and will support progress toward achieving the long-term goal of a 2% ratio.

LCNB undertakes no obligation to update any forward-looking statement to reflect events or circumstances that arise after the date such statements are made. -5- Table of Contents LCNB CORP. AND SUBSIDIARIES DESCRIPTION OF LCNB'S BUSINESS General Description LCNB Corp., an Ohio corporation formed in December 1998, is a financial holding company headquartered in Lebanon, Ohio.

LCNB undertakes no obligation to update any forward-looking statement to reflect events or circumstances that arise after the date such statements are made. DESCRIPTION OF LCNB'S BUSINESS General Description LCNB Corp., an Ohio corporation formed in December 1998, is a financial holding company headquartered in Lebanon, Ohio.

Under current regulations, the Bank was “well capitalized” as of December 31, 2022. -10- Table of Contents LCNB CORP.

Under current regulations, the Bank was “well capitalized” as of December 31, 2023. -10- Table of Contents LCNB CORP.

These and other laws also limit finance charges or other fees or charges earned for offering various services. LCNB must comply with the applicable provisions of these consumer protection laws and regulations as part of its ongoing customer relations. -11- Table of Contents LCNB CORP.

Additional benefits include a matching 401-K plan, a performance bonus plan, and tuition reimbursement plans. LCNB has an active Wellness Committee comprised of employees from across the Bank. The committee promotes activities, education, and consultation that improve the health and lives of employees and their families.

Additional benefits include a matching 401-K plan, a performance bonus plan, and tuition reimbursement plans. -14- Table of Contents LCNB CORP. AND SUBSIDIARIES LCNB has an active Wellness Committee comprised of employees from across the Bank. The committee promotes activities, education, and consultation that improve the health and lives of employees and their families.

LCNB's incentive compensation arrangements must provide employees with incentives that appropriately balance risk and reward and do not encourage imprudent risk, be compatible with effective controls and risk managements, and be supported by strong corporate governance, including active and effective oversight by LCNB's board of directors.

Competition among financial institutions is based upon interest rates offered on deposit accounts, interest rates charged on loans and other credit and service charges, availability of electronic banking services, the quality and scope of the services rendered, and the convenience of banking facilities and electronic banking technologies.

With respect to the Bank, the Basel III Rules also revised the “prompt corrective action” regulations pursuant to Section 38 of the Federal Deposit Insurance Act, as discussed below under “Prompt Corrective Action.” See Note 14 - Regulatory Matters of the consolidated financial statements for more information concerning LCNB's compliance with regulatory capital ratios.

With respect to the Bank, the Basel III Rules also revised the “prompt corrective action” regulations pursuant to Section 38 of the Federal Deposit Insurance Act, as discussed below under “Prompt Corrective Action.” See Note 15 - Regulatory Matters and Impact on Payment of Dividends of the consolidated financial statements for more information concerning LCNB's compliance with regulatory capital ratios.

Finally, the final rule requires creditors to retain evidence of compliance with the rule for three years after a covered loan is consummated. This rule became effective January 10, 2014.

Finally, the final rule requires creditors to retain evidence of compliance with the rule for three years after a covered loan is consummated. This rule became effective January 10, 2014. -13- Table of Contents LCNB CORP.

The estimated amount of uninsured deposits including related interest accrued and unpaid was $212.7 million and $222.2 million at December 31, 2022 and 2021, respectively. -17- Table of Contents LCNB CORP.

The estimated amount of uninsured deposits including related interest accrued and unpaid was $203.9 million and $212.7 million at December 31, 2023 and 2022, respectively. -17- Table of Contents LCNB CORP.

LCNB Corp. receives most of its revenue from dividends paid to it by the Bank. During the years ended December 31, 2022, 2021 and 2020, dividends paid by LCNB National Bank to LCNB Corp. totaled $16,950,000, $15,000,000, and $11,250,000, respectively.

LCNB Corp. receives most of its revenue from dividends paid to it by the Bank. During the years ended December 31, 2023, 2022, and 2021, dividends paid by LCNB National Bank to LCNB Corp. totaled $29,000,000, $16,950,000, and $15,000,000, respectively. -8- Table of Contents LCNB CORP.

Likewise, an increased amount of consolidation among banks and securities firms or banks and insurance firms could result in a growing number of large financial institutions that could compete aggressively with LCNB. -7- Table of Contents LCNB CORP. AND SUBSIDIARIES The Bank is subject to the provisions of the National Bank Act.

Likewise, an increased amount of consolidation among banks and securities firms or banks and insurance firms could result in a growing number of large financial institutions that could compete aggressively with LCNB. 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.

LCNB may experience difficulties growing loan and deposit balances; 11.

LCNB may experience difficulties maintaining and growing loan and deposit balances; 9.

Such legislation could change banking statutes and the operating environment of LCNB and the Bank in substantial and unpredictable ways. If enacted, such legislation could increase or decrease the cost of doing business, limit or expand permissible activities, or affect the competitive balance among banks, savings associations, credit unions, and other financial institutions.

If enacted, such legislation could increase or decrease the cost of doing business, limit or expand permissible activities, or affect the competitive balance among banks, savings associations, credit unions, and other financial institutions.

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; 12. deterioration in the financial condition of the U.S. banking system may impact the valuations of investments LCNB has made in the securities of other financial institutions resulting in either actual losses or other than temporary impairments on such investments; 13. difficulties with technology or data security breaches, including cyberattacks, could negatively affect LCNB's ability to conduct business and its relationships with customers, vendors, and others; 14. 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 15. government intervention in the U.S. financial system, including the effects of legislative, tax, accounting and regulatory actions and reforms, including the CARES Act, the Dodd-Frank Act, the Jumpstart Our Business Startups Act, the Consumer Financial Protection Bureau, the capital ratios of Basel III as adopted by the federal banking authorities, the Tax Cuts and Jobs Act, and any such future regulatory actions or reforms.

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 geopolitical relations and/or conflicts could create financial market uncertainty and have negative impacts on commodities and currency, which could adversely affect LCNB's operating results and financial condition; 11. difficulties with technology or data security breaches, including cyberattacks, 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 Dodd-Frank Act, 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.

LCNB’s ability to integrate future acquisitions may be unsuccessful, or may be more difficult, time-consuming, or costly than expected; 5. LCNB may incur increased loan charge-offs in the future; 6.

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.

At December 31, 2022, the Bank had: • 30 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 35 ATMs.

At December 31, 2023, the Bank had: • 34 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 in Ohio and one office in Boone County, Kentucky, • an Operations Center in Warren County, Ohio, • a lot currently undergoing construction for a future office that will replace the current downtown Chillicothe, Ohio office, • and 38 ATMs.

AND SUBSIDIARIES The following table presents an estimate of the contractual maturities of time deposits that exceed the FDIC insurance limit of $250,000 at December 31, 2022: (In thousands) Maturity within 3 months $ 1,721 After 3 but within 6 months 2,491 After 6 but within 12 months 1,272 After 12 months 8,265 $ 13,749

AND SUBSIDIARIES The following table presents an estimate of the contractual maturities of time deposits that exceed the FDIC insurance limit of $250,000 at December 31, 2023: (In thousands) Maturity within 3 months $ 1,661 After 3 but within 6 months 9,236 After 6 but within 12 months 17,339 After 12 months 8,475 $ 36,711

LCNB's initial base deposit insurance rate will increase from three to five basis points when the final rule takes effect. The increase will remain in effect until the long-term goal of a 2% FDIC designated reserve ratio is achieved. Progressively lower assessment rates will take effect when the reserve ratio reaches 2% and again when the reserve ratio reaches 2.5%.

The increase will remain in effect until the long-term goal of a 2% FDIC designated reserve ratio is achieved. Progressively lower assessment rates will take effect when the reserve ratio reaches 2% and again when the reserve ratio reaches 2.5%.

On October 18, 2022, the FDIC issued a final rule that will increase the initial base deposit insurance assessment rate paid by insured depository institutions by two basis points, beginning with the first quarterly assessment period of 2023.

In addition, the FDIC can impose special assessments to cover shortages in the DIF and has imposed special assessments in the past. On October 18, 2022, the FDIC issued a final rule that increased the initial base deposit insurance assessment rate paid by insured depository institutions by two basis points, beginning with the first quarterly assessment period of 2023.

Human Capital As of December 31, 2022, LCNB employed 309 full-time equivalent employees working throughout the ten Ohio counties in which LCNB operates. LCNB considers these individuals the most important influence contributing to the Bank’s success and is committed to investing in their ongoing growth and development. LCNB fosters a welcoming environment that celebrates diversity, equity, and inclusion for all.

Human Capital As of December 31, 2023, LCNB employed 345 full-time and 35 part-time employees working throughout the ten Ohio counties and one Kentucky county in which LCNB operates. LCNB considers these individuals the most important influence contributing to the Bank’s success and is committed to investing in their ongoing growth and development.

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.

For this purpose, derivative transactions include any contract, agreement, swap, warrant, note or option that is based in whole or in part on the value of, any interest in, or any quantitative measure or the occurrence of any event relating to, one or more commodity securities, currencies, interest or other rates, indices, or other assets; • requirement that the amount of any interchange fee charged by a debit card issuer with respect to a debit card transaction must be reasonable and proportional to the cost incurred by the issuer.

Limitations are placed on the extent to which a bank can disclose an account number or access code for credit card, deposit, or transaction accounts to any nonaffiliated third party for use in marketing. Dodd-Frank Act and Regulatory Relief Act The Dodd-Frank Act, which was enacted in July 2010, effected a fundamental restructuring of federal banking regulation.

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. Banking Operations.

The Bank is also subject to the rules and regulations of the Board of Governors of the Federal Reserve System and the FDIC. -7- Table of Contents LCNB CORP. AND SUBSIDIARIES Banking Operations.

The monetary policies of the Federal Reserve Board have had a significant effect on the operating results of banks in the past and are expected to continue to do so in the future. -13- Table of Contents LCNB CORP.

The monetary policies of the Federal Reserve Board have had a significant effect on the operating results of banks in the past and are expected to continue to do so in the future. Regulatory Reform and Legislation From time to time, various legislative and regulatory initiatives are introduced in Congress and state legislatures, as well as by regulatory agencies.

Agency mortgage-backed securities 90,746 79,440 2.19 % — — — % Totals $ 327,731 289,850 1.69 % 19,878 18,885 4.32 % (1) Yields on tax-exempt obligations are computed on a taxable-equivalent basis based upon a 21.0% statutory Federal income tax rate. Excluding holdings in U.S. Treasury securities and U.S.

Agency mortgage-backed securities 81,634 72,790 2.22 % — — — % Totals $ 304,805 276,601 1.66 % 16,863 15,679 4.58 % (1) Yields on tax-exempt obligations are computed on a taxable-equivalent basis based upon a 21.0% statutory Federal income tax rate. Excluding holdings in U.S. Treasury securities and U.S.

AND SUBSIDIARIES Regulatory Reform and Legislation From time to time, various legislative and regulatory initiatives are introduced in Congress and state legislatures, as well as by regulatory agencies. Such initiatives may include proposals to expand or contract the powers of bank holding companies and depository institutions or proposals to substantially change the financial institution regulatory system.

Such initiatives may include proposals to expand or contract the powers of bank holding companies and depository institutions or proposals to substantially change the financial institution regulatory system. Such legislation could change banking statutes and the operating environment of LCNB and the Bank in substantial and unpredictable ways.

Agency notes: Within one year — — — % — — — % One to five years 61,735 54,509 0.90 % — — — % Five to ten years 27,425 23,467 1.54 % — — — % After ten years — — — % — — — % Total U.S.

Treasury notes: Within one year $ 6,591 6,418 0.83 % $ — — — % One to five years 67,813 61,784 1.08 % — — — % Five to ten years — — — % — — — % After ten years — — — % — — — % Total U.S.

Removed

These factors include, but are not limited to: 1. the success, impact, and timing of the implementation of LCNB’s business strategies; 2. the ongoing uncertainties for LCNB's business, results of operations and financial condition, as well as its regulatory capital and liquidity ratios and other regulatory requirements, caused by the COVID-19 pandemic resulting from the scope and duration of the pandemic; 3. the disruption of global, national, state, and local economies associated with the COVID-19 pandemic and other geopolitical conditions, which could affect LCNB's liquidity and capital positions, impair the ability of our borrowers to repay outstanding loans, impair collateral values, and further increase the allowance for credit losses; 4.

Added

If dividends exceed net profit for a year, a bank is generally not required to carry forward the negative amount resulting from such excess if the bank can attribute the excess to the preceding two years.

Removed

Through December 31, 2022, the assessment rate for the Bank was at the lowest risk-based premium available, which was 3.00% of the assessment base per annum. In addition, the FDIC can impose special assessments to cover shortages in the DIF and has imposed special assessments in the past.

Added

If the excess is greater than the bank's previously undistributed net income for the preceding two years, prior OCC approval of the dividend is required and a negative amount would be carried forward in future dividend calculations.

Removed

AND SUBSIDIARIES Dodd-Frank Act and Regulatory Relief Act The Dodd-Frank Act, which was enacted in July 2010, effected a fundamental restructuring of federal banking regulation.

Added

On October 24, 2023, the OCC, the Board of Governors of the Federal Reserve System, and the FDIC released a final rule that significantly changes how all but the smallest banks will be evaluated for compliance with the CRA.

Removed

Treasury notes: Within one year $ 10,350 10,196 1.93 % $ — — — % One to five years 49,260 44,255 0.92 % — — — % Five to ten years 25,317 21,996 1.32 % — — — % After ten years — — % — — — % Total U.S.

Added

Under the new regulations, banks with $2 billion or more in assets will be evaluated under a Retail Lending Test, a Retail Services and Products Test, a Community Development Financing Test, and a Community Development Services Test.

Removed

Treasury notes 84,927 76,447 1.16 % — — — % U.S.

Added

Banks with total assets of $600 million or more and less than $2 billion will be evaluated under the Retail Lending Test and, at the bank's option, either the current Intermediate Bank Community Development Test or the new Community Development Financing Test.

Removed

Agency notes 89,160 77,976 1.09 % — — — % Corporate bonds: Within one year — — — % — — — % One to five years — — — % — — — % Five to ten years 7,450 6,685 4.24 % — — — % After ten years — — — % — — — % Total corporate bonds 7,450 6,685 4.24 % — — — % Municipal securities, tax-exempt (1): Within one year 1,356 1,345 3.04 % 755 752 1.87 % One to five years 4,181 4,090 2.62 % 3,628 3,475 2.46 % Five to ten years 2,625 2,454 1.99 % 1,994 1,847 4.97 % After ten years 730 635 3.77 % 10,070 9,789 4.47 % Total Municipal securities 8,892 8,524 2.59 % 16,447 15,863 3.97 % Municipal securities, taxable: Within one year 1,487 1,463 2.41 % — — — % One to five years 17,850 16,450 2.25 % — — — % Five to ten years 27,219 22,865 2.17 % 446 391 2.98 % After ten years — — — % 2,985 2,631 6.45 % Total Municipal securities 46,556 40,778 2.21 % 3,431 3,022 6.00 % U.S.

Added

The final rule takes effect on April 1, 2024 with staggered compliance dates of January 1, 2026 and January 1, 2027.

Added

AND SUBSIDIARIES • requirement that the amount of any interchange fee charged by a debit card issuer with respect to a debit card transaction must be reasonable and proportional to the cost incurred by the issuer.

Added

LCNB fosters a welcoming environment that celebrates diversity, equity, and inclusion for all.

Added

Treasury notes 74,404 68,202 1.06 % — — — % U.S.

Added

Agency notes: Within one year 9,037 8,705 0.44 % — — — % One to five years 74,970 67,641 1.05 % — — — % Five to ten years 4,971 4,555 2.87 % — — — % After ten years — — — % — — — % Total U.S.

Added

Agency notes 88,978 80,901 1.09 % — — — % Corporate bonds: Within one year — — — % — — — % One to five years — — — % — — — % Five to ten years 7,450 6,534 4.24 % — — — % After ten years — — — % — — — % Total corporate bonds 7,450 6,534 4.24 % — — — % Municipal securities, tax-exempt (1): Within one year 837 830 3.01 % 1,469 1,442 3.08 % One to five years 3,262 3,208 2.75 % 1,319 1,270 3.16 % Five to ten years 3,317 3,133 2.38 % 2,456 2,339 4.63 % After ten years — — — % 8,336 7,661 4.48 % Total Municipal securities 7,416 7,171 2.62 % 13,580 12,712 4.23 % Municipal securities, taxable: Within one year 2,731 2,685 2.59 % — — — % One to five years 23,370 21,790 2.20 % — — — % Five to ten years 18,822 16,528 2.15 % 393 348 2.96 % After ten years — — — % 2,890 2,619 6.45 % Total Municipal securities 44,923 41,003 2.20 % 3,283 2,967 6.03 % U.S.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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2022 filing

2023 filing

Biggest changeSuch actions may include foreclosure on the real estate securing the loan, taking possession of other collateral that may have been pledged as security for the loan, or modifying the terms of the loan. If foreclosed on, commercial real estate is often unique and may be difficult to liquidate. Future growth and expansion opportunities may contain risks.

Biggest changeIn such cases, LCNB may take actions to protect its financial interest in the loan. Such actions may include foreclosure on the real estate securing the loan, taking possession of other collateral that may have been pledged as security for the loan, or modifying the terms of the loan.

The fluctuations in national, regional and local economic conditions, including those related to local residential, commercial real estate and construction markets, may result in increased charge-offs. These fluctuations are not predictable, cannot be controlled, and may have a material impact on LCNB's operations and financial condition even if other favorable events occur. -18- Table of Contents LCNB CORP.

The fluctuations in national, regional and local economic conditions, including those related to local residential, commercial real estate and construction markets, may result in increased charge-offs. These fluctuations are -18- Table of Contents LCNB CORP. AND SUBSIDIARIES not predictable, cannot be controlled, and may have a material impact on LCNB's operations and financial condition even if other favorable events occur.

In addition to historic charge-off percentages, factors taken into consideration to determine the adequacy of the allowance for loan losses include the nature, volume, and consistency of the loan portfolio, overall portfolio quality, a review of specific problem loans, the fair value of any underlying collateral, borrowers’ cash flows, and current economic conditions that may affect borrowers’ ability to make payments.

In addition to historic charge-off percentages, factors taken into consideration to determine the adequacy of the allowance for credit losses include the nature, volume, and consistency of the loan portfolio, overall portfolio quality, a review of specific problem loans, the fair value of any underlying collateral, borrowers’ cash flows, and current economic conditions that may affect borrowers’ ability to make payments.

Borrower inability to make scheduled loan payments due to a higher loan cost could result in increased loan defaults, foreclosures, and write-offs and may necessitate additions to the allowance for loan losses. In addition, increases in the general level of interest rates may decrease the demand for new consumer and commercial loans, thus limiting LCNB’s growth and profitability.

Borrower inability to make scheduled loan payments due to a higher loan cost could result in increased loan defaults, foreclosures, and write-offs and may necessitate additions to the allowance for credit losses. In addition, increases in the general level of interest rates may decrease the demand for new consumer and commercial loans, thus limiting LCNB’s growth and profitability.

AND SUBSIDIARIES Declining values of real estate, increases in unemployment, insurance market disruptions, and the related effects on local economies may increase LCNB's credit losses, which would negatively affect financial results. LCNB offers a variety of secured loans, including commercial lines of credit, commercial term loans, real estate, construction, home equity, consumer, and other loans.

Declining values of real estate, increases in unemployment, insurance market disruptions, and the related effects on local economies may increase LCNB's credit losses, which would negatively affect financial results. LCNB offers a variety of secured loans, including commercial lines of credit, commercial term loans, real estate, construction, home equity, consumer, and other loans.

Natural disasters, including severe weather events of increasing strength and frequency due to climate change, acts of war or terrorism, and other adverse external events could have a significant impact on LCNB’s ability to conduct business or upon third parties who perform operational services for LCNB or its customers.

AND SUBSIDIARIES Natural disasters, including severe weather events of increasing strength and frequency due to climate change, acts of war or terrorism, and other adverse external events could have a significant impact on LCNB’s ability to conduct business or upon third parties who perform operational services for LCNB or its customers.

If, as a result of general economic conditions or a decrease in asset quality, management determines that additional increases in the allowance for loan losses are necessary, LCNB will incur additional expenses. -22- Table of Contents LCNB CORP. AND SUBSIDIARIES The fair value of LCNB’s investments could decline. Most of LCNB’s investment securities portfolio is designated as available-for-sale.

If, as a result of general economic conditions or a decrease in asset quality, management determines that additional increases in the allowance for credit losses are necessary, LCNB will incur additional expenses. -22- Table of Contents LCNB CORP. AND SUBSIDIARIES The fair value of LCNB’s investments could decline. Most of LCNB’s investment securities portfolio is designated as available-for-sale.

If the strength of the United States economy in general and the strength of the local economies in which LCNB conducts operations, which are primarily in Southwestern and South Central Ohio, decline, this could result in, among other things, a deterioration of credit quality or a reduced demand for credit, including a resultant effect on the loan portfolio and allowance for credit losses.

If the strength of the United States economy in general and the strength of the local economies in which LCNB conducts operations, which are primarily in Southwestern and South Central Ohio and Northern Kentucky, decline, this could result in, among other things, a deterioration of credit quality or a reduced demand for credit, including a resultant effect on the loan portfolio and allowance for credit losses.

Because LCNB has a significant amount of commercial and residential real estate loans, decreases in real estate values could adversely affect the value of property used as collateral. As a result, LCNB may need to increase its allowance for loan losses, negatively affecting earnings. LCNB’s earnings are significantly affected by market interest rates.

Because LCNB has a significant amount of commercial and residential real estate loans, decreases in real estate values could adversely affect the value of property used as collateral. As a result, LCNB may need to increase its allowance for credit losses, negatively affecting earnings. LCNB’s earnings are significantly affected by market interest rates.

If LCNB is unable to successfully manage these risks in the development and implementation of new lines of business or new products or services, it could have a material adverse effect on LCNB’s business, financial condition, and result of operations. The allowance for loan losses may be inadequate.

Because LCNB operates primarily in Southwestern and South Central Ohio, its hiring pool is also limited by those markets. Competition for key employees may require LCNB to offer higher compensation to attract or retain key employees, which may adversely affect salaries and employee benefit costs.

Because LCNB operates primarily in Southwestern and South Central Ohio and Northern Kentucky, its hiring pool is also limited by those markets. Competition for key employees may require LCNB to offer higher compensation to attract or retain key employees, which may adversely affect salaries and employee benefit costs.

LCNB conducts its operations from offices that are located in nine Southwestern Ohio counties and in Franklin County, Ohio, from which substantially all of its customer base is drawn. Because of this geographic concentration of operations and customer base, LCNB's financial performance is heavily influenced by economic conditions in these areas.

LCNB conducts its operations from offices that are located in nine Southwestern Ohio counties, in Franklin County, Ohio, and in Boone County, Kentucky, from which substantially all of its customer base is drawn. Because of this geographic concentration of operations and customer base, LCNB's financial performance is heavily influenced by economic conditions in these areas.

LCNB may not be able to effectively implement new technology-driven products and services or be successful in marketing these products and services to its customers. Failure to successfully keep pace with technological change affecting the financial services industry could negatively affect LCNB’s growth, revenue and profit. Emergence of non-bank alternatives to the financial system.

The provision for loan losses is determined by management based upon its evaluation of the amount needed to maintain the allowance for loan losses at a level considered appropriate in relation to the estimated risk of losses inherent in the portfolio.

The provision for credit losses is determined by management based upon its evaluation of the amount needed to maintain the allowance for credit losses at a level considered appropriate in relation to the estimated risk of losses inherent in the portfolio.

Climate change presents multi-faceted risks, including operational risk from the physical effects of climate events on LCNB and its customers’ facilities and other assets; credit risk from borrowers with significant exposure to climate risk; risks associated with the transition to a less carbon-dependent economy; and reputational risk from stakeholder concerns about our practices related to climate change, LCNB’s carbon footprint, and LCNB’s business relationships with clients who operate in carbon-intensive industries.

Such events could affect the stability of LCNB’s deposit base, impair the ability of borrowers to repay outstanding loans, impair the value of collateral securing loans, cause significant property damage, result in lost revenue, or cause LCNB to incur additional expenses.

The FOMC increased the Federal Funds target range by 425 basis points during 2022 in an effort to dampen increasing inflation rates and by another 25 basis points during the first quarter of 2023. Further rate increases may continue throughout 2023. Fluctuations in interest rates may negatively impact LCNB’s profitability.

The FOMC increased the Federal Funds target range by 425 basis points during 2022 in an effort to dampen increasing inflation rates and by another 100 basis points during 2023. Further rate increases may occur during 2024. Fluctuations in interest rates may negatively impact LCNB’s profitability.

These factors could also result in higher delinquencies and greater charge-offs in future periods, which would materially affect LCNB's financial condition and results of operations. There is no assurance that LCNB's non-impaired loans will not become impaired or that impaired loans will not suffer further deterioration in value.

These factors could also result in higher delinquencies and greater charge-offs in future periods, which would materially affect LCNB's financial condition and results of operations. There is no assurance that LCNB's loan borrowers will not experience financial difficulties or that properties securing loans will not suffer deterioration in value.

FDIC deposit insurance assessments may materially increase in the future. Deposits of LCNB are insured up to statutory limits by the FDIC and, accordingly, LCNB and other banks and financial institutions pay quarterly premiums to the FDIC to maintain the DIF.

Deposits of LCNB are insured up to statutory limits by the FDIC and, accordingly, LCNB and other banks and financial institutions pay quarterly premiums to the FDIC to maintain the DIF.

On October 18, 2022, the FDIC issued a final rule that increased the initial base deposit insurance assessment rate paid by insured depository institutions by two basis points, beginning with the first quarterly assessment period of 2023. The likelihood and extent of any further rate increases in the future are indeterminable.

There is no assurance that such growth or expansion activities will be successful or that they will achieve desired profitability levels. Liquidity risk is inherent in LCNB's primary business.

There is no assurance that such growth or expansion activities will be successful or that they will achieve desired profitability levels. Liquidity risk could impair LCNB's ability to fund operations and could jeopardize financial results.

In order to mitigate these heightened risks, LCNB continually evaluates and monitors these types of loans. The repayment of loans secured by commercial real estate is often dependent upon the successful operation, development, or sale of the related real estate or commercial business and may, therefore, be subject to adverse conditions in the real estate market or economy.

The repayment of loans secured by commercial real estate is often dependent upon the successful operation, development, or sale of the related real estate or commercial business and may, therefore, be subject to adverse conditions in the real estate market or economy. If the cash flow from operations is reduced, the borrower’s ability to repay the loan may deteriorate.

The Bank is subject to regulations requiring it to satisfy minimum capital requirements, see Note 14 - Regulatory Matters of the consolidated financial statements for more information. While management expects that LCNB's capital ratios under Basel III will continue to exceed well capitalized minimum capital requirements, there can be no assurance that such will be the case.

While management expects that LCNB's capital ratios under Basel III will continue to exceed well capitalized minimum capital requirements, there can be no assurance that such will be the case.

From time to time LCNB may seek to acquire other financial institutions or parts of those institutions or may open new branch offices. It may also consider and enter into new lines of business or offer new products or services.

It may also consider and enter into new lines of business or offer new products or services.

The likelihood and extent of any further rate increases in the future are indeterminable. LCNB continually encounters technological change. The financial services industry is continually undergoing rapid technological change with frequent introductions of new technology-driven products and services.

Failure to adopt new technologies may result in customer dissatisfaction. The financial services industry is continually undergoing rapid technological change with frequent introductions of new technology-driven products and services.

The uncertain future development of the recovery could materially and adversely affect our business, operations, operating results, financial condition, liquidity, and capital levels. Weakness in the economy and in the real estate market, including weakness specific to our geographic footprint, may affect us, including requiring us to record additional loan loss provisions or to charge off loans.

To the extent similar widespread health related events occur in the future, we could experience material and adverse effects on our business, operations, operating results, financial condition, liquidity, and capital levels as a result. . Weakness in the economy and in the real estate market, including weakness specific to LCNB's geographic footprint, may negatively affect it's financial condition and earnings.

Removed

Risks Related to Economic and Market Conditions The ultimate long-term impact on LCNB's business and financial results from the ongoing COVID-19 pandemic will depend on future developments, which are highly uncertain and cannot be predicted, including the scope and duration of the pandemic and actions taken by governmental authorities in response to the pandemic.

Added

Risks Related to Economic and Market Conditions Outbreaks of communicable diseases, (such as COVID-19 and its variants), have led to periods of significant volatility in financial and other markets, adversely affected our ability to conduct normal business, adversely affected our clients, and may harm our businesses, financial condition and results of operations.

Removed

The effects of the ongoing recovery from the COVID-19 pandemic are still evolving and not fully known. We may experience further disruptions in economic activity, adverse effects on the functioning of financial markets, impacts on interest rates, increased economic and market uncertainty, and disrupted trade and supply chains.

Added

Pandemics and widespread outbreaks of communicable diseases (such as COVID-19, influenza and other respiratory diseases) have caused and may continue to cause significant disruption in the international and United States economies and financial markets, including in the regions in which the Company operates.

Removed

If these effects continue for a prolonged period or result in sustained economic stress or recession, many of the risk factors identified in this Form 10-K could be exacerbated and such effects could have a material adverse impact on us in a number of ways related to credit, collateral, customer demand, funding, operations, interest rate risk, human capital and self-insurance.

Added

The spread of these diseases, including COVID variants, has caused illness and death and led to quarantines, cancellation of events and travel, business shutdowns, reduction in business activity and financial transactions, supply chain interruptions, and overall economic and financial market instability.

Removed

If the cash flow from operations is reduced, the borrower’s ability to repay the loan may be impaired. In such cases, LCNB may take actions to protect its financial interest in the loan.

Added

In response to the COVID-19 pandemic, the governments of the states in which we have branches, and most other states, periodically took preventative or protective actions, such as imposing restrictions on travel and business operations, advising or requiring individuals to limit or forego their time outside of their homes, and ordering temporary closures of businesses that have been deemed to be non-essential.

Removed

On March 12, 2023, the FDIC made a joint statement with the Department of the Treasury and the Board of Governors of the Federal Reserve that any losses to the DIF in connection with support for uninsured depositors in connection with the Signature Bank and Silicon Valley Bank closures will be recovered by a special assessment paid by insured depository institutions.

Added

These restrictions and other consequences of public health issues resulted in significant adverse effects for many different types of businesses, and resulted in a significant number of layoffs and furloughs of employees nationwide and in the regions in which we operate, which, in turn, impacted our customer base.

Added

In order to mitigate these heightened risks, LCNB continually evaluates and monitors these types of loans. Approximately 98.2% of our total commercial loans or about 64.3% of our total loans relate to commercial real estate.

Added

If foreclosed on, commercial real estate is often unique and may be difficult to liquidate. Future growth and expansion opportunities may contain risks that could negatively affect us. From time to time LCNB may seek to acquire other financial institutions or parts of those institutions or may open new branch offices.

Added

The Bank is subject to regulations requiring it to satisfy minimum capital requirements, see Note 15 - Regulatory Matters and Impact on Payment of Dividends of the consolidated financial statements for more information.

Added

Risks Related to Recent Events Impacting the Financial Services Industry Recent events impacting the financial services industry, including the failures of Silicon Valley Bank, Signature Bank, and First Republic Bank, have led to a decrease in confidence in banks among consumer and commercial depositors, other counterparties and investors, as well as caused significant disruption, volatility, and reduced valuations of equity and other securities of banks and bank holding companies in the capital markets.

Added

These events are occurring during a period of continued rises to interest rates which, among other things, have resulted in unrealized losses in longer-duration securities and loans held by banks, increased competition for bank deposits, and the possibility of an increase in the risk of a potential recession.

Added

These recent events have, and could continue to have, an adverse impact on the market price and volatility of LCNB's common stock.

Added

These recent events may also result in potentially adverse changes to laws and/or regulations governing banks and bank holding companies or result in the imposition of restrictions through supervisory or enforcement activities, including higher capital requirements, which could have a material impact on LCNB's business.

Added

LCNB may be impacted by concerns from depositors, investors, and other counterparties regarding the soundness or creditworthiness of other financial institutions, which could cause substantial and cascading disruption within the financial markets and increase Company expenses. FDIC deposit insurance assessments may materially increase in the future.

Item 2. Properties

Properties — owned and leased real estate

3 edited+0 added−1 removed0 unchanged

2022 filing

2023 filing

Biggest changeThe Main Office and Oxford, Ohio locations have excess space that is currently being leased to third parties. An operations center in Lebanon, Ohio is currently being leased from the Warren County Port Authority. Upon expiration of the lease in 2027, LCNB has the option to purchase the property for $1.00. LCNB also owns a vacant lot in Chillicothe, Ohio.

Item 2. Properties LCNB owns its main office in Lebanon, Ohio, which is approximately 28,000 square feet and houses its executive, wealth management, and certain administrative personnel. LCNB owns an additional 22 branch locations and leases an additional seven branch locations, pursuant to operating leases.

Item 2. Properties LCNB owns its main office in Lebanon, Ohio, which is approximately 28,000 square feet and houses its executive, wealth management, and certain administrative personnel. LCNB owns an additional 26 branch locations and leases an additional seven branch locations, pursuant to operating leases.

Current plans are to construct a new office which will replace the current downtown Chillicothe Office. Management believes that LCNB's banking and other offices are in good condition and suitable to its needs. The Hunter Office, located in Franklin, Ohio, closed at the end of the business day on January 12, 2023.

LCNB is currently constructing a new office in Chillicothe, Ohio, which will replace the current downtown Chillicothe Office. Management believes that LCNB's banking and other offices are in good condition and suitable to its needs. The Hunter Office, located in Franklin, Ohio, closed at the end of the business day on January 12, 2023.

Removed

All of LCNB's ATMs were replaced during 2020 using a lease/outsourcing arrangement with a third party vendor.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

8 edited+5 added−4 removed3 unchanged

2022 filing

2023 filing

Biggest changeThe 10b5-1 trading plan permits common shares to be repurchased at times that LCNB might otherwise be precluded from doing so under insider trading laws or self-imposed trading restrictions. The 10b5-1 trading plan is administered by an independent broker and is subject to price, market volume, and timing restrictions.

Biggest changeAs part of the Plan, LCNB entered into a trading plan adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. The 10b5-1 trading plan permits common shares to be repurchased at times that LCNB might otherwise be precluded from doing so under insider trading laws or self-imposed trading restrictions.

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities LCNB had approximately 914 registered holders of its common stock as of December 31, 2022. The number of shareholders includes banks and brokers who act as nominees, each of whom may represent more than one shareholder.

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities LCNB had approximately 1,056 registered holders of its common stock as of March 14, 2024. The number of shareholders includes banks and brokers who act as nominees, each of whom may represent more than one shareholder.

The 2015 Plan provides for the issuance of up to 450,000 shares of common stock. The 2015 Plan will terminate on April 28, 2025 and is subject to earlier termination by the Compensation Committee. On May 27, 2022, LCNB's Board of Directors authorized a share repurchase program (the “Program”).

The 2015 Plan provides for the issuance of up to 450,000 shares of common stock. The 2015 Plan will terminate on April 28, 2025 and is subject to earlier termination by the Compensation Committee. On February 27, 2023, LCNB's Board of Directors authorized a new Issuer Stock Repurchase Plan Agreement (the “Plan”).

This graph covers the period from December 31, 2017 through December 31, 2022. The cumulative total shareholder returns included in the graph reflect the returns for the shares of common stock of LCNB. The information provided in the graph assumes that $100 was invested on December 31, 2017 in LCNB common stock, the NASDAQ Composite Index, and the S&P U.S.

The cumulative total shareholder returns included in the graph reflect the returns for the shares of common stock of LCNB. The information provided in the graph assumes that $100 was invested on December 31, 2018 in LCNB common stock, the NASDAQ Composite Index, and the S&P U.S. BMI Banks - Midwest Region Index and that all dividends were reinvested.

The number of shares repurchased and the timing, manner, price and amount of any repurchases will be determined at LCNB's discretion. Factors include, but are not limited to, share price, trading volume, and general market conditions, along with LCNB’s general business conditions.

Factors include, but are not limited to, share price, trading volume, and general market conditions, along with LCNB’s general business conditions. The Plan may be suspended or discontinued at any time and does not obligate LCNB to acquire any specific number of its common shares.

The new share repurchase program authorizes the repurchase of up to 500,000 shares of common stock. -26- Table of Contents LCNB CORP. AND SUBSIDIARIES The graph below provides an indicator of cumulative total shareholder returns for LCNB as compared with the NASDAQ Composite Index and the S&P U.S. BMI Banks - Midwest Region Index.

AND SUBSIDIARIES The graph below provides an indicator of cumulative total shareholder returns for LCNB as compared with the NASDAQ Composite Index and the S&P U.S. BMI Banks - Midwest Region Index. This graph covers the period from December 31, 2018 through December 31, 2023.

Under the terms of the Program, LCNB is authorized to repurchase up to 500,000 of its outstanding common shares. The Program replaced and superseded LCNB’s prior share repurchase program, which was adopted in January 2021. Under the Program, LCNB may purchase common shares through various means such as open market transactions, including block purchases, and privately negotiated transactions.

Under the terms of the Plan, LCNB is authorized to repurchase up to 500,000 of its outstanding common shares. The Plan replaced and superseded LCNB’s prior Issuer Stock Repurchase Plan Agreement, which was adopted in May 27, 2022.

In addition, dividend payments may not reduce capital levels below minimum regulatory guidelines. Management believes the Bank will be able to pay anticipated ordinary dividends to LCNB without needing to request approval. During the period of this report, LCNB did not sell any of its securities that were not registered under the Securities Act.

During the period of this report, LCNB did not sell any of its securities that were not registered under the Securities Act.

Removed

The Program may be suspended or discontinued at any time and does not obligate LCNB to acquire any specific number of its common shares. As part of the Program, LCNB entered into a trading plan adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended.

Added

If dividends exceed retained net income for a year, a bank is generally not required to carry forward the negative amount resulting from such excess if the bank can attribute the excess to the preceding two years.

Removed

The following table sets forth information relating to purchases made under the Program during the three months ended December 31, 2022: Period Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs October 1 - October 31, 2022 26,343 $ 16.51 26,343 352,889 November 1 - November 30, 2022 — $ — — 352,889 December 1 - December 31, 2022 13,835 $ 17.57 13,835 339,054 The Program expired on or around December 31, 2022 and was replaced with a new share repurchase program that was authorized by the Board of Directors on February 27, 2023.

Added

Removed

BMI Banks - Midwest Region Index and that all dividends were reinvested. Period Ending Index 12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021 12/31/2022 LCNB Corp. $ 100.00 76.75 101.79 81.23 112.73 108.93 NASDAQ Composite Index $ 100.00 97.16 132.81 192.47 235.15 158.65 S&P U.S.

Added

Under the Plan, LCNB may purchase common shares through various means such as open market transactions, including block purchases and privately negotiated transactions. The number of shares repurchased and the timing, manner, price, and amount of any repurchases will be determined at LCNB's discretion.

Removed

Added

The 10b5-1 trading plan is administered by an independent broker and is subject to price, market volume, and timing restrictions. No purchases were made under the Program during the three months ended December 31, 2023. The maximum number of shares that may yet be purchased under the Program is 315,047. -27- Table of Contents LCNB CORP.

Added

Period Ending Index 12/31/2018 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 LCNB Corp. $ 100.00 132.62 105.83 146.87 141.92 131.31 NASDAQ Composite Index $ 100.00 136.69 198.10 242.03 163.28 236.17 S&P U.S. BMI Banks - Midwest Region Index $ 100.00 130.10 111.85 147.78 127.53 130.20 Source: S&P Global Market Intelligence © 2024 -28- Table of Contents LCNB CORP. AND SUBSIDIARIES

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

4 edited+2 added−1 removed2 unchanged

2022 filing

2023 filing

Biggest changeGains were higher in 2021 and 2020 primarily due to the volume of loans sold. • Other non-interest expense for 2022 included $471,000 in losses from the sales of two office buildings as a result of LCNB's branch consolidation strategy. • Gains from sales of other real estate owned was $889,000 in 2022.

Biggest changeGains were lower in 2022 primarily due to the volume of loans sold. • Other non-interest expense for 2023 was partially offset by a $425,000 gain recognized on the sale of an office building as a result of LCNB's branch consolidation strategy. • Other non-interest expense for 2022 included $471,000 in losses from the sales of two office buildings as a result of LCNB's branch consolidation strategy. • Other non-interest expense for 2022 was partially offset by an $889,000 gain recognized from the sale of other real estate owned.

The following table presents, for the years indicated, average balances for interest-earning assets and interest-bearing liabilities, the income or expense related to each item, and the resulting average yields earned or rates paid. -29- Table of Contents LCNB CORP. AND SUBSIDIARIES

Item 6. [Reserved] -28- Table of Contents LCNB CORP. AND SUBSIDIARIES Item 7.

Item 6. [Reserved] -29- Table of Contents LCNB CORP. AND SUBSIDIARIES Item 7.

Overview Net income for 2022 was $22,128,000 (basic and diluted earnings per share of $1.93), compared to $20,974,000 (basic and diluted earnings per share of $1.66) in 2021 and $20,075,000 (basic and diluted earnings per share of $1.55) in 2020 .

Overview Net income for 2023 was $12,628,000 (basic and diluted earnings per share of $1.10), compared to $22,128,000 (basic and diluted earnings per share of $1.93) in 2022 and $20,974,000 (basic and diluted earnings per share of $1.66) in 2021.

Removed

The following items affected financial position and results of operations for the years indicated: • Net loans increased 2.3% to $1.40 billion at December 31, 2022 compared to $1.36 billion at December 31, 2021. • Total assets increased 0.8% to $1.92 billion at December 31, 2022 compared to $1.90 billion at December 31, 2021. • Net interest income in 2022 was $61,042,000, compared to $57,124,000 in 2021 and $56,218,000 in 2020. • Net gains from sales of loans totaled $196,000 in 2022, $852,000 in 2021, and $2,297,000 in 2020.

Added

The following items affected financial position and results of operations for the years indicated: • Cincinnati Bancorp, Inc. merged with and into LCNB Corp. on November 1, 2023. • Eagle Financial Bancorp, Inc. is expected to merge with and into LCNB Corp. during the second quarter 2024. • Merger related expenses connected with the above two acquisitions totaled $4,656,000 during 2023. • Net interest income in 2023 was $56,349,000, compared to $61,042,000 in 2022 and $57,124,000 in 2021. • The provision for credit losses in 2023 totaled $2,077,000, compared to a provision of $250,000 for 2022 and a recovery of $269,000 for 2021.

Added

Included in the provision for credit losses for 2023 was a $1,722,000 provision expense related to loans acquired through the Cincinnati Federal acquisition that were not considered purchased with credit deterioration ("non-PCD loans"). • Net gains from sales of loans totaled $697,000 in 2023, $196,000 in 2022, and $852,000 in 2021.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

50 edited+35 added−36 removed15 unchanged

2022 filing

2023 filing

Biggest changeManagement's Discussion and Analysis of Financial Condition and Results of Operations (continued) Financial Condition A comparison of balance sheet line items at December 31, 2022 and 2021 is as follows (in thousands): December 31, 2022 December 31, 2021 Difference $ Difference % ASSETS: Total cash and cash equivalents $ 22,701 18,136 4,565 25.17 % Investment securities: Equity securities with a readily determinable fair value, at fair value 2,273 2,546 (273) (10.72) % Equity securities without a readily determinable fair value, at cost 2,099 2,099 — — % Debt securities, available-for-sale, at fair value 289,850 308,177 (18,327) (5.95) % Debt securities, held-to-maturity, at cost 19,878 22,972 (3,094) (13.47) % Federal Reserve Bank stock, at cost 4,652 4,652 — — % Federal Home Loan Bank stock, at cost 4,415 5,203 (788) (15.15) % Loans, net 1,395,632 1,363,939 31,693 2.32 % Premises and equipment, net 33,042 35,385 (2,343) (6.62) % Operating lease right-of-use assets 6,248 6,357 (109) (1.71) % Goodwill 59,221 59,221 — — % Core deposit and other intangibles, net 1,827 2,473 (646) (26.12) % Bank owned life insurance 44,298 43,224 1,074 2.48 % Interest receivable 7,482 7,999 (517) (6.46) % Other assets, net 25,503 21,246 4,257 20.04 % Total assets $ 1,919,121 1,903,629 15,492 0.81 % LIABILITIES: Deposits: Non-interest-bearing $ 505,824 501,531 4,293 0.86 % Interest-bearing 1,099,146 1,127,288 (28,142) (2.50) % Total deposits 1,604,970 1,628,819 (23,849) (1.46) % Short-term borrowings 71,455 — 71,455 — % Long-term debt 19,072 10,000 9,072 90.72 % Operating leases liability 6,370 6,473 (103) (1.59) % Accrued interest and other liabilities 16,579 19,733 (3,154) (15.98) % Total liabilities 1,718,446 1,665,025 53,421 3.21 % SHAREHOLDERS' EQUITY: Common shares 144,069 143,130 939 0.66 % Retained earnings 139,249 126,312 12,937 10.24 % Treasury shares, at cost (52,689) (29,029) (23,660) 81.50 % Accumulated other comprehensive loss, net of taxes (29,954) (1,809) (28,145) 1,555.83 % Total shareholders' equity 200,675 238,604 (37,929) (15.90) % Total liabilities and shareholders' equity $ 1,919,121 1,903,629 15,492 0.81 % Reasons for changes include: • Debt securities, available-for-sale, decreased primarily due to decreases in fair values totaling $35.9 million and maturities and calls totaling $20.7 million, partially offset by new purchases totaling $39.3 million. • Federal Home Loan Bank stock decreased because excess shares over the minimum required investment were redeemed by the Federal Home Loan Bank of Cincinnati, partially offset by new purchases. • Net loans increased due to organic growth in the loan portfolio.

Biggest changeFinancial Condition A comparison of balance sheet line items at December 31 is as follows (in thousands): 2023 2022 Difference $ Difference % ASSETS: Total cash and cash equivalents $ 39,723 22,701 17,022 74.98 % Investment securities: Equity securities with a readily determinable fair value, at fair value 1,336 2,273 (937) (41.22) % Equity securities without a readily determinable fair value, at cost 3,666 2,099 1,567 74.65 % Debt securities, available-for-sale, at fair value 276,601 289,850 (13,249) (4.57) % Debt securities, held-to-maturity, at cost 16,858 19,878 (3,020) (15.19) % Federal Reserve Bank stock, at cost 5,086 4,652 434 9.33 % Federal Home Loan Bank stock, at cost 15,176 4,415 10,761 243.74 % Loans, net 1,712,946 1,395,632 317,314 22.74 % Premises and equipment, net 36,302 33,042 3,260 9.87 % Operating lease right-of-use assets 6,000 6,525 (525) (8.05) % Goodwill 79,509 59,221 20,288 34.26 % Core deposit and other intangibles, net 9,494 1,827 7,667 419.65 % Bank owned life insurance 49,847 44,298 5,549 12.53 % Interest receivable 8,405 7,482 923 12.34 % Other assets, net 30,643 25,503 5,140 20.15 % Total assets $ 2,291,592 1,919,398 372,194 19.39 % LIABILITIES: Deposits: Non-interest-bearing $ 462,267 505,824 (43,557) (8.61) % Interest-bearing 1,362,122 1,099,146 262,976 23.93 % Total deposits 1,824,389 1,604,970 219,419 13.67 % Short-term borrowings 97,395 71,455 25,940 36.30 % Long-term debt 113,123 19,072 94,051 493.14 % Operating leases liability 6,261 6,647 (386) (5.81) % Accrued interest and other liabilities 15,121 16,579 (1,458) (8.79) % Total liabilities 2,056,289 1,718,723 337,566 19.64 % SHAREHOLDERS' EQUITY: Common shares 173,637 144,069 29,568 20.52 % Retained earnings 140,017 139,249 768 0.55 % Treasury shares, at cost (56,015) (52,689) (3,326) 6.31 % Accumulated other comprehensive loss, net of taxes (22,336) (29,954) 7,618 (25.43) % Total shareholders' equity 235,303 200,675 34,628 17.26 % Total liabilities and shareholders' equity $ 2,291,592 1,919,398 372,194 19.39 % -36- Table of Contents LCNB CORP.

The evaluations take into consideration such factors as changes in the nature and volume of the loan portfolio, overall portfolio quality, review of specific problem loans, and current economic conditions that may affect the borrowers' ability to pay. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available.

The evaluations take into consideration such factors as changes in the nature and volume of the loan portfolio, overall portfolio quality, review of specific problem loans, and current and forecasted economic conditions that may affect the borrowers' ability to pay. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available.

Within each pool of loans, LCNB examines a variety of factors to determine the adequacy of the allowance for loan losses, including historic charge-off percentages, overall pool quality, a review of specific problem loans, current economic trends and conditions that may affect borrowers' ability to pay, and the nature, volume, and consistency of the loan pool.

Within each pool of loans, LCNB examines a variety of factors to determine the adequacy of the allowance for credit losses, including historic charge-off percentages, overall pool quality, a review of specific problem loans, current economic trends and conditions that may affect borrowers' ability to pay, and the nature, volume, and consistency of the loan pool.

The total provision for loan losses is determined based upon management's evaluation as to the amount needed to maintain the allowance for loan losses at a level considered appropriate in relation to the risk of losses inherent in the portfolio. For analysis purposes, the loan portfolio is separated into pools of similar loans.

The total provision for credit losses is determined based upon management's evaluation as to the amount needed to maintain the allowance for credit losses at a level considered appropriate in relation to the risk of losses inherent in the portfolio. For analysis purposes, the loan portfolio is separated into pools of similar loans.

Based on the valuation techniques used and the sensitivity of financial statement amounts to the methods, assumptions, and estimates underlying those amounts, management has identified the items described below to be the accounting areas that require the most subjective or complex judgments and, as such, could be most subject to revision as new information becomes available.

Capital is separated into Tier 1 capital (essentially shareholders' equity less goodwill and other intangibles) and Tier 2 capital (essentially the allowance for loan losses limited to 1.25% of risk-weighted assets). Common Equity Tier 1 Capital is the sum of common stock, related surplus, and retained earnings, net of treasury stock, accumulated other comprehensive income, and other adjustments.

Capital is separated into Tier 1 capital (essentially shareholders' equity less goodwill and other intangibles) and Tier 2 capital (essentially the allowance for credit losses limited to 1.25% of risk-weighted assets). Common Equity Tier 1 Capital is the sum of common stock, related surplus, and retained earnings, net of treasury stock, accumulated other comprehensive income, and other adjustments.

The increase in total interest expense was primarily due to an $816,000 increase in interest paid on NOW and money fund deposits, a $410,000 increase in interest paid on short-term borrowings, and a $144,000 increase in interest paid on long-term debt, partially offset by a $731,000 decrease in interest paid on IRA and time certificates.

The increase in total interest expense was primarily due to an $816,000 increase in interest paid on NOW and money market deposits, a $410,000 increase in interest paid on short-term borrowings, and a $144,000 increase in interest paid on long-term debt, partially offset by a $731,000 decrease in interest paid on IRA and time certificates.

(2) Change in interest income from non-taxable investment securities is computed based on interest income determined on a taxable-equivalent yield basis. Interest income has been divided by a factor comprised of the complement of the incremental tax rate of 21%. 2022 vs. 2021.

Interest paid on NOW and money fund deposits increased due to a $53.3 million increase in average balances and to a 15 basis point increase in the average rate paid. Interest paid on IRA and time certificates decreased due to a $42.2 million decrease in average deposit balances and to a 15 basis point decrease in the average rate paid.

Interest paid on NOW and money market deposits increased due to a $53.3 million increase in average balances and to a 15 basis point increase in the average rate paid. Interest paid on IRA and time certificates decreased due to a $42.2 million decrease in average deposit balances and to a 15 basis point decrease in the average rate paid.

(4) The net interest margin is the taxable-equivalent net interest income divided by average interest-earning assets. -30- Table of Contents LCNB CORP. AND SUBSIDIARIES Item 7.

(4) The net interest margin is the taxable-equivalent net interest income divided by average interest-earning assets. -31- Table of Contents LCNB CORP. AND SUBSIDIARIES Item 7.

Additional borrowings of approximately $38.5 million were available through the line of credit arrangements at year-end. Management closely monitors the level of liquid assets available to meet ongoing funding needs. It is management's intent to maintain adequate liquidity so that sufficient funds are readily available at a reasonable cost.

Additional borrowings of approximately $63.6 million were available through the line of credit arrangements at year-end. Management closely monitors the level of liquid assets available to meet ongoing funding needs. It is management's intent to maintain adequate liquidity so that sufficient funds are readily available at a reasonable cost.

Calculating an appropriate level for the allowance and provision for loan losses involves a high degree of management judgment and is, by its nature, imprecise. Revisions may be necessary as more information becomes available. -32- Table of Contents LCNB CORP. AND SUBSIDIARIES Item 7.

Calculating an appropriate level for the allowance and provision for credit losses involves a high degree of management judgment and is, by its nature, imprecise. Revisions may be necessary as more information becomes available. -33- Table of Contents LCNB CORP. AND SUBSIDIARIES Item 7.

Core deposit intangibles acquired from business combinations are initially measured at their estimated fair values and are then amortized on a straight-line basis over their estimated useful lives. Management evaluates whether events or circumstances have occurred that indicate the remaining useful life or carrying value of the amortizing intangible should be revised.

Core deposit intangibles acquired from business combinations are initially measured at their estimated fair values and are then amortized on a straight-line basis over their estimated useful lives. Management evaluates whether triggering events or circumstances have occurred that indicate the remaining useful life or carrying value of the amortizing intangible should be revised. Fair Value Accounting for Debt Securities.

The allowance is an amount that management believes will be adequate to absorb inherent losses in the loan portfolio, based on evaluations of the collectability of loans and prior loan loss experience.

The allowance is an amount that management believes will be adequate to absorb estimated losses over the contractual terms in the loan portfolio based on evaluations of the collectability of loans and prior loan loss experience.

Primary funding sources include customer deposits with the Bank, short-term and long-term borrowings from the Federal Home Loan Bank, short-term line of credit arrangements totaling $60.0 million with three correspondent banks, and interest and repayments received from LCNB's loan and investment portfolios. Total remaining borrowing capacity with the Federal Home Loan Bank at December 31, 2022 was approximately $160.6 million.

Primary funding sources include customer deposits with the Bank, short-term and long-term borrowings from the Federal Home Loan Bank, short-term line of credit arrangements totaling $85.0 million with three correspondent banks, and interest and repayments received from LCNB's loan and investment portfolios. Total remaining borrowing capacity with the Federal Home Loan Bank at December 31, 2023 was approximately $89.2 million.

Awards may be made in the form of stock options, appreciation rights, restricted shares, and/or restricted share units. The 2015 Plan provides for the issuance of up to 450,000 shares. The 2015 Plan will terminate on April 28, 2025 and is subject to earlier termination by the Compensation Committee. -38- Table of Contents LCNB CORP. AND SUBSIDIARIES Item 7.

Interest paid on short-term borrowings increased due to a $13.7 million increase in average balances and to a 214 basis point increase in the average rate paid. Interest paid on long-term debt increased due to a $1.8 million increase in average balances and to a 52 basis point increase in the average rate paid. -31- Table of Contents LCNB CORP.

LCNB experienced no liquidity or operational problems as a result of current liquidity levels. Management believes LCNB has the ability to generate and obtain adequate amounts of liquidity to meet its requirements in the short and long-term.

Information summarizing the regulatory capital of the Bank at December 31, 2022 and 2021 and corresponding regulatory minimum requirements is included in Note 14 - Regulatory Matters of the consolidated financial statements. The FDIC, the insurer of deposits in financial institutions, has adopted a risk-based insurance premium system based in part on an institution's capital adequacy.

Information summarizing the regulatory capital of the Bank at December 31, 2023 and 2022 and corresponding regulatory minimum requirements is included in Note 15 - Regulatory Matters and Impact on Payment of Dividends. The FDIC, the insurer of deposits in financial institutions, has adopted a risk-based insurance premium system based in part on an institution's capital adequacy.

Management's Discussion and Analysis of Financial Condition and Results of Operations (continued) The increased rates paid on interest-bearing liabilities and the increased yield earned on interest-earning assets is largely the result of higher market interest rates that were caused by FOMC increases in the federal funds target rate totaling 425 basis points during 2022. 2021 vs. 2020.

Allowance for Loan Losses . The allowance for loan losses is established through a provision for loan losses charged to expense. Loans are charged against the allowance for loan losses when management believes that the collectability of the principal is unlikely. Subsequent recoveries, if any, are credited to the allowance.

Loans are charged against the allowance for credit losses when management believes that the collectability of the principal is unlikely. Subsequent recoveries, if any, are credited to the allowance.

Management's Discussion and Analysis of Financial Condition and Results of Operations (continued) Non-Interest Income A comparison of non-interest income for 2022, 2021, and 2020 is as follows: Increase (Decrease) 2022 2021 2020 2022 vs. 2021 2021 vs. 2020 (In thousands) Fiduciary income $ 6,468 6,674 5,009 (206) 1,665 Service charges and fees on deposit accounts 6,190 6,036 5,482 154 554 Net gains on sales of debt securities — 303 221 (303) 82 Bank owned life insurance income 1,074 1,074 1,441 — (367) Net gains from sales of loans 196 852 2,297 (656) (1,445) Other operating income 360 1,293 1,291 (933) 2 Total non-interest income $ 14,288 16,232 15,741 (1,944) 491 Reasons for changes include: • Fiduciary income decreased during 2022 primarily due to decreases in the fair values of trust and brokerage assets managed, on which fees are based.

Management's Discussion and Analysis of Financial Condition and Results of Operations (continued) Non-Interest Income A comparison of non-interest income for 2023, 2022, and 2021 is as follows: Increase (Decrease) 2023 2022 2021 2023 vs. 2022 2022 vs. 2021 (In thousands) Fiduciary income $ 7,091 6,468 6,674 623 (206) Service charges and fees on deposit accounts 5,856 6,190 6,036 (334) 154 Net gains on sales of debt securities — — 303 — (303) Bank owned life insurance income 1,136 1,074 1,074 62 — Net gains from sales of loans 697 196 852 501 (656) Other operating income 631 360 1,293 271 (933) Total non-interest income $ 15,411 14,288 16,232 1,123 (1,944) Reasons for changes include: • Fiduciary income increased during 2023 primarily due to increases in the fair values of trust and brokerage assets managed, on which fees are based.

The average rate earned includes loan prepayment fees, which increased from $601,000 for 2021 to $1,025,000 for 2022. Interest income from taxable debt securities increased due to a $21.4 million increase in average securities and to a 36 basis point increase in the average rate earned on these securities.

Loan interest increased due to a $51.2 million increase in average loans and to a 7 basis point increase in the average rate earned. The average rate earned includes loan prepayment fees, which increased from $601,000 for 2021 to $1,025,000 for 2022.

Interest income from non-taxable debt securities decreased due to a $5.5 million decrease in average securities and to a 6 basis point decrease in the average rate earned on these securities.

Interest income from taxable debt securities increased due to a $21.4 million increase in average securities and to a 36 basis point increase in the average rate earned on these securities.

Management's Discussion and Analysis of Financial Condition and Results of Operations (continued) Critical Accounting Estimates The accounting policies of LCNB conform to U.S. generally accepted accounting principles and require management to make estimates and develop assumptions that affect the amounts reported in the financial statements and related footnotes.

Critical Accounting Estimates The accounting policies of LCNB conform to U.S. generally accepted accounting principles and require management to make estimates and develop assumptions that affect the amounts reported in the financial statements and related footnotes. These estimates and assumptions are based on information available to management as of the date of the financial statements.

Independent loan reviews analyze specific loans, providing validation that credit risks are appropriately identified, graded, and reported to the Loan Committee, Board of Directors, and the Audit Committee of the Board of Directors.

Allowance for Credit Losses LCNB continuously reviews the loan portfolio for credit risk through the use of its lending and loan review functions. Independent loan reviews analyze specific loans, providing validation that credit risks are appropriately identified, graded, and reported to the Loan Committee, Board of Directors, and the Audit Committee of the Board of Directors.

Management's Discussion and Analysis of Financial Condition and Results of Operations (continued) Years ended December 31, 2022 2021 2020 Average Outstanding Balance Interest Earned/ Paid Average Yield/ Rate Average Outstanding Balance Interest Earned/ Paid Average Yield/ Rate Average Outstanding Balance Interest Earned/ Paid Average Yield/ Rate (Dollars in thousands) Loans (1) $ 1,380,272 $ 59,247 4.29 % $ 1,329,072 $ 56,142 4.22 % $ 1,306,314 $ 59,267 4.54 % Interest-bearing demand deposits 9,027 166 1.84 % 14,876 48 0.32 % 20,808 83 0.40 % Federal Reserve Bank stock 4,652 279 6.00 % 4,652 279 6.00 % 4,652 279 6.00 % Federal Home Loan Bank stock 4,716 196 4.16 % 5,203 104 2.00 % 5,203 117 2.25 % Investment securities: Equity securities 4,451 85 1.91 % 4,576 72 1.57 % 4,303 91 2.11 % Debt securities, taxable 293,700 5,027 1.71 % 272,251 3,668 1.35 % 148,415 2,916 1.96 % Debt securities, non-taxable (2) 27,532 953 3.46 % 32,937 1,094 3.32 % 38,439 1,300 3.38 % Total earning assets 1,724,350 65,953 3.82 % 1,663,567 61,407 3.69 % 1,528,134 64,053 4.19 % Non-earning assets 196,710 193,311 183,819 Allowance for loan losses (5,629) (5,701) (5,029) Total assets $ 1,915,431 $ 1,851,177 $ 1,706,924 NOW and money fund deposits $ 516,949 1,372 0.27 % $ 463,636 556 0.12 % $ 391,490 838 0.21 % Savings deposits 449,841 618 0.14 % 407,298 599 0.15 % 323,867 595 0.18 % IRA and time certificates 172,119 1,692 0.98 % 214,344 2,423 1.13 % 289,775 5,201 1.79 % Short-term borrowings 14,482 416 2.87 % 821 6 0.73 % 372 7 1.88 % Long-term debt 17,910 613 3.42 % 16,148 469 2.90 % 34,265 921 2.69 % Total interest-bearing liabilities 1,171,301 4,711 0.40 % 1,102,247 4,053 0.37 % 1,039,769 7,562 0.73 % Noninterest-bearing demand deposits 513,400 482,402 407,961 Other liabilities 22,459 25,705 22,798 Capital 208,271 240,823 236,396 Total liabilities and capital $ 1,915,431 $ 1,851,177 $ 1,706,924 Net interest rate spread (3) 3.42 % 3.32 % 3.46 % Net interest income and net interest margin on a tax equivalent basis (4) $ 61,242 3.55 % $ 57,354 3.45 % $ 56,491 3.70 % Ratio of interest-earning assets to interest-bearing liabilities 147.22 % 150.93 % 146.97 % (1) Includes non-accrual loans if any.

Management's Discussion and Analysis of Financial Condition and Results of Operations (continued) Years ended December 31, 2023 2022 2021 Average Outstanding Balance Interest Earned/ Paid Average Yield/ Rate Average Outstanding Balance Interest Earned/ Paid Average Yield/ Rate Average Outstanding Balance Interest Earned/ Paid Average Yield/ Rate (Dollars in thousands) Loans (1) $ 1,467,981 $ 71,894 4.90 % $ 1,380,272 $ 59,247 4.29 % $ 1,329,072 $ 56,142 4.22 % Interest-bearing demand deposits 13,039 734 5.63 % 9,027 166 1.84 % 14,876 48 0.32 % Federal Reserve Bank stock 4,722 283 5.99 % 4,652 279 6.00 % 4,652 279 6.00 % Federal Home Loan Bank stock 8,293 590 7.11 % 4,716 196 4.16 % 5,203 104 2.00 % Investment securities: Equity securities 3,879 175 4.51 % 4,451 85 1.91 % 4,576 72 1.57 % Debt securities, taxable 277,157 5,235 1.89 % 293,700 5,027 1.71 % 272,251 3,668 1.35 % Debt securities, non-taxable (2) 24,031 871 3.62 % 27,532 953 3.46 % 32,937 1,094 3.32 % Total earning assets 1,799,102 79,782 4.43 % 1,724,350 65,953 3.82 % 1,663,567 61,407 3.69 % Non-earning assets 210,509 196,995 193,597 Allowance for credit losses (8,046) (5,629) (5,701) Total assets $ 2,001,565 $ 1,915,716 $ 1,851,463 Interest-bearing demand and money market deposits $ 535,865 7,850 1.46 % $ 516,949 1,372 0.27 % $ 463,636 556 0.12 % Savings deposits 398,299 725 0.18 % 449,841 618 0.14 % 407,298 599 0.15 % IRA and time certificates 233,604 7,996 3.42 % 172,119 1,692 0.98 % 214,344 2,423 1.13 % Short-term borrowings 75,383 4,060 5.39 % 14,482 416 2.87 % 821 6 0.73 % Long-term debt 56,798 2,619 4.61 % 17,910 613 3.42 % 16,148 469 2.90 % Total interest-bearing liabilities 1,299,949 23,250 1.79 % 1,171,301 4,711 0.40 % 1,102,247 4,053 0.37 % Noninterest-bearing demand deposits 472,232 513,400 482,402 Other liabilities 21,557 22,744 25,991 Capital 207,827 208,271 240,823 Total liabilities and capital $ 2,001,565 $ 1,915,716 $ 1,851,463 Net interest rate spread (3) 2.64 % 3.42 % 3.32 % Net interest income and net interest margin on a tax equivalent basis (4) $ 56,532 3.14 % $ 61,242 3.55 % $ 57,354 3.45 % Ratio of interest-earning assets to interest-bearing liabilities 138.40 % 147.22 % 150.93 % (1) Includes non-accrual loans if any.

The new share repurchase program authorizes the repurchase of up to 500,000 shares of common stock. The 2015 Ownership Incentive Plan (the "2015 Plan") was approved by LCNB's shareholders at the annual meeting on April 28, 2015 and allows for stock-based awards to eligible employees, as determined by the Compensation Committee of the Board of Directors.

Management's Discussion and Analysis of Financial Condition and Results of Operations (continued) The 2015 Ownership Incentive Plan (the "2015 Plan") was approved by LCNB's shareholders at the annual meeting on April 28, 2015 and allows for stock-based awards to eligible employees, as determined by the Compensation Committee of the Board of Directors.

The Bank is not aware of any reasons why it would not receive such approval, if required. Effective liquidity management ensures that cash is available to meet the cash flow needs of borrowers and depositors, pay dividends to shareholders, and meet LCNB's operating cash needs.

Effective liquidity management ensures that cash is available to meet the cash flow needs of borrowers and depositors, pay dividends to shareholders, and meet LCNB's operating cash needs.

Management's Discussion and Analysis of Financial Condition and Results of Operations (continued) Non-Interest Expense A comparison of non-interest expense for 2022, 2021, and 2020 is as follows: Increase (Decrease) 2022 2021 2020 2022 vs. 2021 2021 vs. 2020 (In thousands) Salaries and employee benefits $ 28,483 27,616 27,178 867 438 Equipment expenses 1,629 1,678 1,377 (49) 301 Occupancy expense, net 3,067 2,949 2,875 118 74 State financial institutions tax 1,740 1,758 1,708 (18) 50 Marketing 1,184 1,239 1,254 (55) (15) Amortization of intangibles 478 1,043 1,046 (565) (3) FDIC premiums 530 492 256 38 236 ATM expense 1,370 1,416 1,028 (46) 388 Computer maintenance and supplies 1,114 1,213 1,107 (99) 106 Telephone expense 240 420 706 (180) (286) Contracted services 2,503 2,430 1,821 73 609 Other real estate owned, net (866) 2 (6) (868) 8 Other non-interest expense 6,662 5,784 5,435 878 349 Total non-interest expense $ 48,134 48,040 45,785 94 2,255 Reasons for changes include: • Salaries and employee benefits were 3.1% greater in 2022 than in 2021 and 1.6% greater in 2021 than in 2020.

Management's Discussion and Analysis of Financial Condition and Results of Operations (continued) Non-Interest Expense A comparison of non-interest expense for 2023, 2022, and 2021 is as follows: Increase (Decrease) 2023 2022 2021 2023 vs. 2022 2022 vs. 2021 (In thousands) Salaries and employee benefits $ 29,108 28,483 27,616 625 867 Equipment expenses 1,616 1,629 1,678 (13) (49) Occupancy expense, net 3,301 3,067 2,949 234 118 State financial institutions tax 1,628 1,740 1,758 (112) (18) Marketing 1,101 1,184 1,239 (83) (55) Amortization of intangibles 532 478 1,043 54 (565) FDIC premiums 932 530 492 402 38 ATM expense 1,112 1,370 1,416 (258) (46) Computer maintenance and supplies 1,358 1,114 1,213 244 (99) Contracted services 2,776 2,503 2,430 273 73 Other real estate owned, net 4 (866) 2 870 (868) Merger-related expenses 4,656 — — 4,656 — Other non-interest expense 6,299 6,902 6,204 (603) 698 Total non-interest expense $ 54,423 48,134 48,040 6,289 94 Reasons for changes include: • Salaries and employee benefits were 2.2% greater in 2023 than in 2022 and 3.1% greater in 2022 than in 2021.

In addition, other operating income for 2021 included a one-time Ohio Financial Institutions Tax refund of $508,000. -33- Table of Contents LCNB CORP. AND SUBSIDIARIES Item 7.

Other operating income decreased in 2022 as compared to 2021 primarily because LCNB recognized $292,000 in losses on equity securities during 2022 as compared to $142,000 in gains during 2021. In addition, other operating income for 2021 included a one-time Ohio Financial Institutions Tax refund of $508,000. -34- Table of Contents LCNB CORP. AND SUBSIDIARIES Item 7.

The decrease in total interest income was due primarily to a $3,125,000 decrease in interest income from loans and a $206,000 decrease in interest income from non-taxable debt securities, partially offset by a $752,000 increase in interest income from taxable debt securities.

The increase resulted from an increase in total taxable-equivalent interest income of $4,546,000, partially offset by an increase in total interest expense of $658,000. The increase in total interest income was due primarily to a $3,105,000 increase in interest income from loans and a $1,359,000 increase in interest income from taxable debt securities.

These estimates and assumptions are based on information available to management as of the date of the financial statements. Actual results could differ significantly from management’s estimates. As this information changes, management’s estimates and assumptions used to prepare LCNB’s financial statements and related disclosures may also change.

Actual results could differ significantly from management’s estimates. As this information changes, management’s estimates and assumptions used to prepare LCNB’s financial statements and related disclosures may also change. The most significant accounting policies followed by LCNB are presented in Note 1 of the Notes to Consolidated Financial Statements included herein.

The decrease in total interest expense was primarily due to a $2,778,000 decrease in interest paid on IRA and time certificates, a $452,000 decrease in interest paid on long-term debt, and a $282,000 decrease in interest paid on NOW and money fund deposits.

The increase in total interest expense was primarily due to a $6,478,000 increase in interest paid on interest-bearing demand and money market deposits, a $6,304,000 increase in interest paid on IRA and time certificates, a $3,644,000 increase in interest paid on short-term borrowings, and a $2,006,000 increase in interest paid on long-term debt.

For the years ended December 31, 2022 vs. 2021 2021 vs. 2020 Increase (decrease) due to Increase (decrease) due to Volume Rate Total Volume Rate Total (In thousands) Interest income attributable to: Loans (1) $ 2,187 918 3,105 1,018 (4,143) (3,125) Interest-bearing demand deposits (26) 144 118 (21) (14) (35) Federal Home Loan Bank stock (11) 103 92 — (13) (13) Investment securities: Equity securities (2) 15 13 5 (24) (19) Debt securities, taxable 307 1,052 1,359 1,878 (1,126) 752 Debt securities, non-taxable (2) (186) 45 (141) (183) (23) (206) Total interest income 2,269 2,277 4,546 2,697 (5,343) (2,646) Interest expense attributable to: NOW and money fund deposits 71 745 816 134 (416) (282) Savings deposits 60 (41) 19 136 (132) 4 IRA and time certificates (440) (291) (731) (1,147) (1,631) (2,778) Short-term borrowings 349 61 410 5 (6) (1) Long-term debt 55 89 144 (521) 69 (452) Total interest expense 95 563 658 (1,393) (2,116) (3,509) Net interest income $ 2,174 1,714 3,888 4,090 (3,227) 863 (1) Non-accrual loans, if any, are included in average loan balances.

For the years ended December 31, 2023 vs. 2022 2022 vs. 2021 Increase (decrease) due to Increase (decrease) due to Volume Rate Total Volume Rate Total (In thousands) Interest income attributable to: Loans (1) $ 3,930 8,717 12,647 2,187 918 3,105 Interest-bearing demand deposits 101 467 568 (26) 144 118 Federal Reserve Bank stock 4 — 4 — — — Federal Home Loan Bank stock 203 191 394 (11) 103 92 Investment securities: Equity securities (12) 102 90 (2) 15 13 Debt securities, taxable (293) 501 208 307 1,052 1,359 Debt securities, non-taxable (2) (125) 43 (82) (186) 45 (141) Total interest income 3,808 10,021 13,829 2,269 2,277 4,546 Interest expense attributable to: Interest-bearing demand and money market deposits 52 6,426 6,478 71 745 816 Savings deposits (77) 184 107 60 (41) 19 IRA and time certificates 793 5,511 6,304 (440) (291) (731) Short-term borrowings 3,016 628 3,644 349 61 410 Long-term debt 1,729 277 2,006 55 89 144 Total interest expense 5,513 13,026 18,539 95 563 658 Net interest income $ (1,705) (3,005) (4,710) 2,174 1,714 3,888 (1) Non-accrual loans, if any, are included in average loan balances.

Net interest income on a fully tax-equivalent basis for 2022 totaled $61,242,000, an increase of $3,888,000 from 2021. The increase resulted from an increase in total taxable-equivalent interest income of $4,546,000, partially offset by an increase in total interest expense of $658,000.

Net interest income on a fully tax-equivalent basis for 2023 totaled $56,532,000, a decrease of $4,710,000 from 2022. The decrease resulted from an increase in total taxable-equivalent interest income of $13,829,000, which was more than offset by an increase in total interest expense of $18,539,000.

Management's Discussion and Analysis of Financial Condition and Results of Operations (continued) The following table provides information concerning LCNB's commitments at December 31, 2022: Amount of Commitment Expiration Per Period Total Amounts Committed 1 year or less Over 1 through 3 years Over 3 through 5 years More than 5 years (In thousands) Commitments to extend credit $ 24,436 24,436 — — — Unused lines of credit 297,000 96,082 140,195 13,371 47,352 Standby letters of credit 5 5 — — — Total $ 321,441 120,523 140,195 13,371 47,352 Capital Resources The Bank is required by banking regulators to meet certain minimum levels of capital adequacy.

The following table provides information concerning LCNB's commitments at December 31, 2023: Amount of Commitment Expiration Per Period Total Amounts Committed 1 year or less Over 1 through 3 years Over 3 through 5 years More than 5 years (In thousands) Commitments to extend credit $ 45,406 45,406 — — — Unused lines of credit 222,006 73,699 57,943 17,776 72,588 Standby letters of credit 5 5 — — — Total $ 267,417 119,110 57,943 17,776 72,588 Capital Resources The Bank is required by banking regulators to meet certain minimum levels of capital adequacy.

The decreases in fair value are primarily due to an overall decrease in the market values of equity and debt securities caused by general economic conditions. The decreases in fair value were partially offset by an increase in the number of wealth management accounts.

Fiduciary income decreased during 2022 primarily due to decreases in the fair values of trust and brokerage assets managed due to an overall decrease in the market values of equity and debt securities caused by general economic conditions.

Fiduciary income increased during 2021 due to a combination of new accounts and increases in the fair value of assets managed. • Service charges and fees on deposit accounts increased during 2022 primarily due to an increase in the volume of overdraft fees collected and fees recognized in relation to the ICS deposit program, partially offset by an overall decrease in service charges collected on deposit accounts.

Service charges and fees on deposit accounts increased during 2022 primarily due to an increase in the volume of overdraft fees collected and fees recognized in relation to the ICS deposit program, partially offset by an overall decrease in service charges collected on deposit accounts. • Net gains from sales of loans were greater during 2023 and 2021 as compared to 2022 primarily due to the volume of loans sold. • Other operating income increased in 2023 as compared to 2022 primarily because of realized and unrealized net gains on equity securities, reflecting a partial recovery in market values.

The increase in total interest income was due primarily to a $3,105,000 increase in interest income from loans and a $1,359,000 increase in interest income from taxable debt securities. Loan interest increased due to a $51.2 million increase in average loans and to a 7 basis point increase in the average rate earned.

The increase in total interest income was due primarily to a $12,647,000 increase in interest income from loans due to an $87.7 million increase in average loans and to a 61 basis point increase in the average rate earned. Average loans increased due to organic growth in the portfolio and to loans acquired through the merger with CNNB.

Interest paid on IRA and time certificates decreased due to a 66 basis point decrease in the average rate paid and to a $75.4 million decrease in average deposit balances. Interest paid on long-term debt decreased due to an $18.1 million decrease in average balances, partially offset by 21 basis point increase in the average rate paid.

Interest paid on IRA and time certificates increased due to a $61.5 million increase in average deposit balances and to a 244 basis point increase in the average rate paid. Interest paid on short-term borrowings increased due to a $60.9 million increase in average balances and to a 251 basis point increase in the average rate paid.

Interest paid on NOW and money fund deposits decreased due to a 9 basis point decrease in the average rate paid, partially offset by a $72.1 million increase in average balances. Decreases in average rates paid for IRA and time certificates and NOW and money fund deposits were primarily due to decreases in market rates.

Interest paid on interest-bearing demand and money market deposits increased due to an $18.9 million increase in average balances and to a 119 basis point increase in the average rate paid.

Commitments to extend credit at December 31, 2022 totaled $321.4 million and are more fully described in Note 13 - Commitments and Contingent Liabilities to LCNB's consolidated financial statements. Since many commitments to extend credit may expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. -37- Table of Contents LCNB CORP.

Since many commitments to extend credit may expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements.

AND SUBSIDIARIES Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations (continued) Fair Value Accounting for Debt Securities. Debt securities classified as available-for-sale are carried at estimated fair value. Unrealized gains and losses, net of taxes, are reported as accumulated other comprehensive income or loss in shareholders’ equity.

Debt securities classified as available-for-sale are recorded at fair value with unrealized gains and losses recorded in other comprehensive income (loss), net of tax. Available-for-sale debt securities in unrealized loss positions are evaluated to determine if the decline in fair value should be recorded in income or in other comprehensive income (loss).

Prior approval from the OCC, the Bank's primary regulator, is necessary for the Bank to pay dividends in excess of this amount. In addition, dividend payments may not reduce capital levels below minimum regulatory guidelines. Management believes the Bank will be able to pay anticipated dividends to LCNB Corp. without needing to request approval.

Net interest income on a fully tax-equivalent basis for 2021 totaled $57,354,000, an increase of $863,000 from 2020. The increase resulted from a decrease in total interest expense of $3,509,000, partially offset by a decrease in total taxable-equivalent interest income of $2,646,000.

The Targeted Federal Funds rate increased by 425 basis points during 2022 and by an additional 100 basis points during 2023. 2022 vs. 2021. Net interest income on a fully tax-equivalent basis for 2022 totaled $61,242,000, an increase of $3,888,000 from 2021.

If the new rates had been in effect for the 2022 assessments, LCNB estimates that it would have paid approximately $72,000 less than the amounts actually paid. Income Taxes LCNB's effective tax rates for the years ended December 31, 2022, 2021, and 2020 were 17.9%, 18.0%, and 16.9%, respectively.

Management's Discussion and Analysis of Financial Condition and Results of Operations (continued) Income Taxes LCNB's effective tax rates for the years ended December 31, 2023, 2022, and 2021 were 17.2%, 17.9%, and 18.0%, respectively.

LCNB recorded net provision for loans losses for 2022 of $250,000, compared to a $269,000 net recovery for 2021 and a $2,014,000 provision for 2020. The 2020 period included qualitative adjustments for estimated impacts from the economic downturn caused by the COVID-19 pandemic.

LCNB recorded provisions for credit losses totaling $2,077,000 for 2023, compared to a $250,000 provision for 2022 and a $269,000 net recovery for 2021. Included in the provision for credit losses for 2023 was a $1,722,000 provision expense related to non-PCD loans acquired through the Cincinnati Federal acquisition.

This new debt was partially offset by the payment in full of a matured $5 million Federal Home Loan Bank advance. • Accrued interest and other liabilities decreased due to a combination of a decrease in LIHTC liabilities due to funding payments made during 2022 and a reclassification of net deferred federal income taxes from a net liability at December 31, 2021 to a net asset at December 31, 2022. • Treasury shares increased because of the repurchase of 1,212,634 shares of common stock during 2022, which represents 9.8% of shares outstanding at December 31, 2021. • Accumulated other comprehensive loss, net of taxes increased because of market-driven decreases in the fair value of LCNB's available-for-sale debt securities investments.

LCNB assumed approximately $56.0 million in short-term borrowings, largely paid off by year-end, and $6.0 million in long-term debt as a result of the merger with CNNB. • Common shares increased primarily because 2,042,598 shares of LCNB common stock valued at $28,576,000 were issued to CNNB shareholders to effectuate the merger. • Treasury shares increased because of the repurchase of 199,913 shares of common stock during 2023, which represents almost 1.8% of shares outstanding at December 31, 2022. • Accumulated other comprehensive loss, net of taxes increased because of market-driven partial recoveries in the fair value of LCNB's available-for-sale debt securities investments.

Based on its evaluations, management believes that the allowance for loan losses will be adequate to absorb estimated losses inherent in the current loan portfolio. Accounting for Intangibles. LCNB’s intangible assets at December 31, 2022 are composed primarily of goodwill and core deposit intangibles related to acquisitions of other financial institutions.

LCNB’s intangible assets are composed primarily of goodwill and core deposit intangibles related to acquisitions of other financial institutions. Accounting rules require LCNB to determine the fair value of all the assets and liabilities of an acquired entity, and to record their fair value on the date of acquisition.

Removed

Loan interest decreased due to a 32 basis point decrease in the average rate earned, partially offset by a $22.8 million increase in average loans and by fees recognized from PPP loans of $1,655,000.

Added

Interest paid on long-term debt increased due to a $38.9 million increase in average balances and to a 119 basis point increase in the average rate paid. -32- Table of Contents LCNB CORP. AND SUBSIDIARIES Item 7.

Removed

Interest income from taxable debt securities increased due to an $123.8 million increase in average securities, partially offset by a 61 basis point decrease in the average rate earned on these securities.

Added

The increases in fair value are due to the opening of new Wealth Management customer accounts and to an increase in the market values of managed assets.

Removed

The increase in the average paid on long-term debt reflects the maturity of comparatively lower rate debt during the year. No new debt was obtained during 2021. Provisions and Allowance for Loan Losses LCNB continuously reviews the loan portfolio for credit risk through the use of its lending and loan review functions.

Added

The decreases in fair value were partially offset by an increase in the number of wealth management accounts. • Service charges and fees on deposit accounts decreased during 2023 primarily due to decreases in most fee categories, including fees received from check cards, ATM usage fees, and deposit account fees in general.

Removed

Service charges and fees on deposit accounts increased during 2021 primarily due to increases in fees received from debit card usage, partially offset by a decrease in fee income recognized on the ICS deposit program. • Net gains on sales of debt securities were less during 2022 as compared to 2021 and 2020 because no securities were sold during 2022. • Bank owned life insurance income was greater in 2020 primarily due to a mortality benefit received.

Added

The increase in 2023 was primarily due to overall wage and benefit increases, a higher number of employees during November and December as a result of the CNNB merger, and a higher amount recognized for 401-K plan matching.

Removed

No mortality benefits were received during 2022 or 2021. • Net gains from sales of loans were greater during 2020 as compared to 2022 and 2021 primarily due to the lower volume of loans sold. • Other operating income decreased in 2022, as compared to 2021 and 2020, primarily because LCNB recognized $292,000 in losses on equity securities during 2022 as compared to $142,000 and $675,000 in gains during 2021 and 2020, respectively.

Added

These increases were partially offset by decreased pension and health insurance expenses and to a higher amount of personnel expenses deferred during 2023 as a cost of loan originations.

Removed

Added

The increase in 2022 was primarily due to overall wage and benefit increases, increased compensation expense recognized on restricted stock grants, increased pension expense, and to a higher amount of personnel expenses deferred in 2021 attributable to the high volume of PPP loans originated in that period. • Occupancy expense, net increased during 2023 and 2022 due to a higher amount of maintenance and repair costs on LCNB's properties in general as well as incremental expenses related to the CNNB acquisition in 2023. • State financial institutions tax, which is based on year-end capital levels, decreased during 2023 as compared to 2022 due to reductions in capital caused by treasury share purchases during 2022 and a decrease in the fair value of debt securities during 2022, which was recorded net of taxes as an increase in accumulated other comprehensive loss, a component of capital. • Amortization of intangibles decreased during 2022 as compared to 2021 because the core deposit intangibles from the First Capital Bancshares, Inc. and Eaton National Bank & Trust Co. acquisitions amortized in full during the first quarter of 2022. • FDIC insurance premiums increased in 2023 because of a two basis point increase in the FDIC's initial base deposit insurance assessment rate that took effect at the beginning of 2023. • Other real estate owned, net for 2022 is primarily due to a gain recognized on the sale of foreclosed property, slightly offset by other expenses recognized on such property. • Merger-related expenses reflect costs incurred in connection with the acquisitions of Cincinnati Bancorp, Inc., which closed on November 1, 2023, and Eagle Financial Bancorp, Inc., which is anticipated to close during the second quarter of 2024. • Other non-interest expense decreased during 2023 primarily due to a $425,000 gain recognized on the sale of an office building that was closed as a result of LCNB's office consolidation strategy, which was netted against other non-interest expense for accounting purposes.

Removed

The increase in 2021 was primarily due to increased employer taxes on employee payroll, increased compensation expense recognized on restricted stock grants, and increased health insurance costs. • Equipment expenses decreased during 2022 as compared to 2021 primarily due to decreased depreciation charges for furniture and equipment and decreased maintenance and repair costs, partially offset by increased equipment rental costs.

Added

Other non-interest expense for 2022 included $471,000 in losses from the sales of two closed office buildings. -35- Table of Contents LCNB CORP. AND SUBSIDIARIES Item 7.

Removed

Equipment expenses increased during 2021 as compared to 2020 primarily due to increased depreciation charges for furniture and equipment and increased equipment rental costs.

Added

AND SUBSIDIARIES Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations (continued) Reasons for changes include: • Debt securities, available-for-sale, decreased due to maturities, paydowns, calls, and decreases in market valuation.

Removed

During 2020, LCNB replaced ATMs that it had previously owned with new ATMs obtained through an outsourcing arrangement. • Amortization of intangibles decreased during 2022 because the core deposit intangibles from the First Capital Bancshares, Inc. and Eaton National Bank & Trust Co. acquisitions amortized in full during the first quarter 2022. • FDIC premiums were higher in 2022 and 2021 as compared to 2020 because LCNB received small bank assessment credits from the FDIC during the first and second quarters of 2020 and the third and fourth quarters of 2019.

Added

There were no security purchases during 2023. • Federal Home Loan Bank stock increased due to the addition of stock previously held by Cincinnati Federal and to the purchase of additional stock to support additional borrowings and loans sold to the FHLB, partially offset by the FHLB's repurchase of excess stock. • Net loans increased due to loans obtained through the merger with CNNB and to organic growth in the loan portfolio.

Removed

Premium payments returned to their normal levels after the second quarter 2020. • ATM expense was higher in 2022 and 2021 than in 2020 partially due to a strategic decision to outsource LCNB's ATM operations to a third-party vendor, relieving LCNB branch personnel from various ATM maintenance responsibilities.

Added

Offsetting the increases were a $2,196,000 increase to the allowance for credit losses on loans due to the adoption of ASC 326, a $493,000 increase to the allowance for purchased credit deteriorated loans obtained in the merger with CNNB, and a $1,722,000 provision for credit losses on non-PCD loans obtained in the merger with CNNB. • Goodwill increased due to additional goodwill recorded as a result of the merger with CNNB. • Core deposit and other intangibles increased due to the additions of a core deposit intangible and mortgage servicing rights obtained in the merger with CNNB. • Bank owned life insurance increased primarily due to additional policies obtained in the merger with CNNB and secondarily due to increases in the cash values of the policies.

Removed

The transition took place gradually during 2020 and all ATMs were outsourced during 2021. • Telephone expense was lower in 2022 and 2021, as compared to 2020, due to connection modifications. • Contracted services were greater in 2022 and 2021, as compared to 2020, due to additional fees paid for data services and general price increases on other contracted services.

Added

No new policies were purchased during 2023. • Other assets increased primarily due to current and deferred tax assets recorded as a result of the CNNB merger. • Total deposits increased primarily due to additional deposits obtained as a result of the CNNB merger.

Removed

Fees for recruitment services were also part of the increase during 2021. • Other real estate owned, net for 2022 is primarily due to a gain recognized on the sale of foreclosed property, slightly offset by other expenses recognized on such property. -34- Table of Contents LCNB CORP. AND SUBSIDIARIES Item 7.

Added

Generally, non-interest and interest-bearing demand deposits and savings account balances decreased during the year, while money market accounts and IRA and time certificates increased as depositors sought higher interest rates. • Short-term borrowings and long-term debt increased primarily to support an increase in liquidity and to support growth in the loan portfolio, as the increase in net loans was greater than the increase in deposits.

Removed

Management's Discussion and Analysis of Financial Condition and Results of Operations (continued) • Other non-interest expense for 2022 included $471,000, in losses from the sales of two office buildings as a result of LCNB's office consolidation strategy. Legal and accounting fees also increased during 2022, partially offset by lower printing and supply costs.

Added

Prior approval from the OCC, the Bank's primary regulator, is necessary for the Bank to pay dividends in excess of this amount. If dividends exceed net profit for a year, a bank is generally not required to carry forward the negative amount resulting from such excess if the bank can attribute the excess to the preceding two years.

Removed

Other non-interest expense increased in 2021, as compared to 2020, primarily due to increased ATM maintenance costs due to the outsourcing agreement, increased costs to support LCNB's electronic banking products, increased printing and supply costs, and increased legal fees.

Added

Management's Discussion and Analysis of Financial Condition and Results of Operations (continued) Commitments to extend credit at December 31, 2023 totaled $267.4 million and are more fully described in Note 14 - Commitments and Contingent Liabilities to LCNB's consolidated financial statements.

Removed

Added

The new share repurchase program authorizes the repurchase of up to 500,000 shares of common stock. -38- Table of Contents LCNB CORP. AND SUBSIDIARIES Item 7.

… 41 more changes not shown on this page.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

5 edited+0 added−1 removed7 unchanged

2022 filing

2023 filing

Biggest changeThe changes in the EVE for all rate assumptions are within LCNB’s acceptable ranges.

Biggest changeThe changes in the EVE for all upward rate shocks are within LCNB's acceptable ranges. The changes in the EVE for all downward rate shocks are outside LCNB's acceptable ranges as shown below. Management has determined the downward shifts to be acceptable due to the positive nature of the results.

As shown below, the December 31, 2022 EVE analysis indicates that an increase in interest rates of 200 or 300 basis points will have a negative effect on the EVE and that a 100 basis point increase or a decrease in interest rates will have a positive effect.

As shown below, the December 31, 2023 EVE analysis indicates that an increase in interest rates of 200 or 300 basis points will have a negative effect on the EVE and that a 100 basis point increase or a decrease in interest rates will have a positive effect.

As shown below, the December 31, 2022 IRSA indicates that an increase in interest rates or a 100 or 200 basis point decrease in interest rates will have a negative effect on net interest income and a 300 basis point decrease in interest rates will have a positive effect on net interest income.

As shown below, the December 31, 2023 IRSA indicates that an increase in interest rates will have a negative effect on net interest income and a decrease in interest rates will have a positive effect on net interest income. The changes in net interest income for all rate assumptions are within LCNB’s acceptable ranges.

Rate Shock Scenario in Basis Points Amount (In thousands) $ Change in Net Interest Income % Change in Net Interest Income Up 300 69,387 (766) (1.09) % Up 200 69,580 (573) (0.82) % Up 100 69,660 (493) (0.70) % Base 70,153 — — % Down 100 69,873 (280) (0.40) % Down 200 70,122 (31) (0.04) % Down 300 70,496 343 0.49 % IRSA shows the effect on net interest income during a one-year period only.

Rate Shock Scenario in Basis Points Amount (In thousands) $ Change in Net Interest Income % Change in Net Interest Income Limits Up 300 62,684 (5,018) (7.41) % 20 % Up 200 64,289 (3,413) (5.04) % 15 % Up 100 65,797 (1,905) (2.81) % 10 % Base 67,702 — — % — % Down 100 68,623 921 1.36 % 10 % Down 200 70,044 2,342 3.46 % 15 % Down 300 71,496 3,794 5.60 % 20 % IRSA shows the effect on net interest income during a one-year period only.

Rate Shock Scenario in Basis Points Amount (In thousands) $ Change in EVE % Change in EVE Up 300 169,977 (21,337) (11.15) % Up 200 182,709 (8,605) (4.50) % Up 100 194,580 3,266 1.71 % Base 191,314 — — % Down 100 216,143 24,829 12.98 % Down 200 227,070 35,756 18.69 % Down 300 217,336 26,022 13.60 % The IRSA and EVE simulations discussed above are not projections of future income or equity and should not be relied on as being indicative of future operating results.

Rate Shock Scenario in Basis Points Amount (In thousands) $ Change in EVE % Change in EVE Limits Up 300 127,089 (32,877) (20.55) % 25 % Up 200 144,143 (15,823) (9.89) % 20 % Up 100 160,341 375 0.23 % 15 % Base 159,966 — — % — % Down 100 190,962 30,996 19.38 % 15 % Down 200 205,572 45,606 28.51 % 20 % Down 300 222,367 62,401 39.01 % 25 % The IRSA and EVE simulations discussed above are not projections of future income or equity and should not be relied on as being indicative of future operating results.

Removed

The changes in net interest income for all rate assumptions are within LCNB’s acceptable ranges.

Top changes in LCNB CORP's 2023 10-K

Item 1. Business

Item 1A. Risk Factors

Item 2. Properties

Item 5. Market for Registrant's Common Equity

Item 6. [Reserved]

Item 7. Management's Discussion & Analysis

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Other LCNB 10-K year-over-year comparisons