LCNB Corp. Posts Record Q2 2026 Results: Net Income $7.5M, EPS $0.53, NIM Expands to 3.99%
LCNB Corp. delivered record Q2 2026 results with net income of $7.5 million, EPS of $0.53 (up 29% year-over-year), and record net interest income of $19.8 million driven by a 52 basis point expansion in net interest margin to 3.99%. Total assets stood at $2.22 billion, shareholders' equity grew to $280.6 million, and LCNB Wealth Management assets reached a record $1.7 billion. Asset quality remained strong with net recoveries in Q2 2026, while the six-month period saw elevated charge-offs related to two logistics sector credits.
*this image is generated using AI for illustrative purposes only.
LCNB Corp. ("LCNB") announced record financial results for the second quarter and six months ended June 30, 2026, with net income, net interest income, and earnings per diluted share all reaching new highs. CEO Eric Meilstrup highlighted strong net interest margin expansion, disciplined expense management, and solid growth at LCNB Wealth Management as key drivers of performance. The company also noted that it earned back the tangible book value dilution from its November 2023 Cincinnati Federal acquisition during the first half of 2026.
Record Quarterly Income Statement Performance
The following table summarizes LCNB's income statement highlights for the second quarter and six-month periods:
| Metric: | Q2 2026 | Q2 2025 | 6M 2026 | 6M 2025 |
|---|---|---|---|---|
| Net Interest Income: | $19.8 million | $17.5 million | $38.6 million | $33.8 million |
| Non-Interest Income: | $5.4 million | $5.2 million | $10.0 million | $10.5 million |
| Non-Interest Expense: | $15.7 million | $15.6 million | $31.6 million | $31.4 million |
| Provision for Credit Losses: | $276 thousand | $18 thousand | $2.6 million | $215 thousand |
| Net Income: | $7.5 million | $5.9 million | $11.9 million | $10.5 million |
| Basic EPS: | $0.53 | $0.41 | $0.84 | $0.74 |
| Diluted EPS: | $0.53 | $0.41 | $0.84 | $0.74 |
Net interest income for Q2 2026 was a record $19.8 million, a 12.8% year-over-year increase, driven by higher yields on earning assets, a reduction in interest-bearing liabilities, and a decrease in the average rate paid on interest-bearing liabilities. The tax-equivalent net interest margin expanded 52 basis points year-over-year to 3.99% for Q2 2026, compared to 3.47% in Q2 2025. For the six-month period, net interest margin was 3.91% versus 3.36% in the prior-year period.
Non-interest income for Q2 2026 was $5.4 million, compared to $5.2 million in Q2 2025, with higher fiduciary income partially offset by lower gains on sales of loans. For the six-month period, non-interest income declined 4.0% to $10.0 million, primarily reflecting the bank's strategy of retaining a greater portion of originated residential mortgages. Non-interest expense for Q2 2026 was $15.7 million, nearly flat versus $15.6 million in Q2 2025, reflecting higher salaries and contracted services expenses offset by lower intangible asset amortization, reduced merger-related expenses, and lower net FDIC insurance premiums.
Key Financial Ratios and Per Share Data
The following table presents selected financial ratios and per share metrics:
| Metric: | Q2 2026 | Q2 2025 |
|---|---|---|
| Return on Average Assets: | 1.34% | 1.04% |
| Return on Average Equity: | 10.78% | 9.09% |
| Net Interest Margin (Tax Equivalent): | 3.99% | 3.47% |
| Efficiency Ratio (Tax Equivalent): | 62.25% | 68.18% |
| Tangible Book Value Per Share: | $12.90 | $11.69 |
| Book Value Per Share: | $19.69 | $18.59 |
| Dividends Per Share: | $0.22 | $0.22 |
| Dividend Payout Ratio: | 41.51% | 53.66% |
Return on average assets improved to 1.34% for Q2 2026, up from 1.04% in Q2 2025. Tangible book value per share increased 10.4% year-over-year to $12.90. For the six-month period ended June 30, 2026, LCNB paid $0.44 per share in dividends.
Balance Sheet and Capital Position
The following table summarizes key balance sheet items as of June 30, 2026 and December 31, 2025:
| Balance Sheet Item: | June 30, 2026 | December 31, 2025 |
|---|---|---|
| Total Assets: | $2.22 billion | $2.24 billion |
| Net Loans: | $1.69 billion | $1.69 billion |
| Total Deposits: | $1.82 billion | $1.84 billion |
| Long-Term Debt: | $103.8 million | $104.4 million |
| Total Shareholders' Equity: | $280.6 million | $273.9 million |
| Tangible Shareholders' Equity: | $183.8 million | $176.7 million |
| Equity to Assets Ratio: | 12.62% | 12.22% |
| Loans to Deposits Ratio: | 93.42% | 92.67% |
Total assets at June 30, 2026 decreased 3.6% to $2.22 billion from $2.31 billion at June 30, 2025, reflecting the strategic runoff of higher-cost certificates of deposit and IRA balances. During Q2 2026, LCNB originated approximately $123 million in new loans, including $73.1 million in commercial and commercial real estate loans and $40.1 million in residential mortgage loans. Shareholders' equity rose to $280.6 million from $263.5 million at June 30, 2025, with tangible shareholders' equity increasing 10.9% year-over-year.
Asset Quality
Asset quality remained at historically strong levels for Q2 2026, with net recoveries of $1 thousand, or 0.00% of average loans. Total nonperforming loans were $5.8 million, or 0.34% of total loans, at June 30, 2026, compared to $4.8 million, or 0.28% of total loans, at June 30, 2025. The nonperforming assets to total assets ratio was 0.26% at June 30, 2026, versus 0.21% at June 30, 2025. For the six-month period, net charge-offs were $2.7 million, or 0.32% of average loans, primarily reflecting the resolution of two unrelated credits within the logistics sector.
| Asset Quality Metric: | Q2 2026 | Q2 2025 |
|---|---|---|
| Nonperforming Loans to Total Loans: | 0.34% | 0.28% |
| Nonperforming Assets to Total Assets: | 0.26% | 0.21% |
| Net Charge-Offs to Average Loans (annualized): | 0.00% | 0.02% |
| Allowance for Credit Losses to Total Loans: | 0.80% | 0.71% |
Wealth Management and Assets Under Management
LCNB Wealth Management assets increased 15.3% year-over-year to a record $1.7 billion at June 30, 2026, producing fiduciary income of $2.7 million for Q2 2026. Total assets managed reached $4.25 billion at June 30, 2026, compared to $4.18 billion at June 30, 2025. During Q2 2026, LCNB expanded its banking team in the Columbus market and added talent to its wealth management team in the Cincinnati market.
| Assets Under Management: | June 30, 2026 | June 30, 2025 |
|---|---|---|
| LCNB Wealth Management Assets: | $1.7 billion | — |
| Total Assets Managed: | $4.25 billion | $4.18 billion |
LCNB Corp. is a financial holding company headquartered in Lebanon, Ohio. Through its subsidiary, LCNB National Bank, it serves customers and communities in Southwest and South-Central Ohio, with banking locations across Butler, Clermont, Clinton, Fayette, Franklin, Hamilton, Montgomery, Preble, Ross, and Warren Counties.
Can the net interest margin expansion be sustained as interest rates potentially stabilize or decline in the second half of 2026?
How will the strategy of retaining originated residential mortgages impact liquidity and capital ratios moving forward?
What are the growth targets for the LCNB Wealth Management segment following the recent talent additions in the Cincinnati market?
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