LCNB Corp. (LCNB): Business Model Canvas [Dec-2025 Updated]

You're looking to understand how a focused regional player navigates today's banking landscape, and LCNB Corp. offers a clear case study in disciplined growth. Honestly, their model isn't about chasing massive scale; it's about deep community roots combined with a sharp focus on wealth management, which now manages $1.54 billion in assets. By maintaining strong asset quality-nonperforming loans sitting at just 0.28% as of Q1 2025-while pushing their net interest margin to 3.57% by Q3 2025, they show how relationship banking can still drive real returns on their $2.24 billion asset base. Dive into the nine blocks below to see exactly how LCNB Corp. connects its local branches and key partnerships to its revenue streams.

LCNB Corp. (LCNB) - Canvas Business Model: Key Partnerships

You're looking at the external relationships LCNB Corp. relies on to keep its community banking engine running smoothly, especially as they manage balance sheet optimization. These aren't just names on a contract; they are functional necessities for everything from shareholder record-keeping to interbank liquidity.

For shareholder services, LCNB Corp. partners with Broadridge Shareholder Services, which handles the transfer agent functions. You can find their contact at c/o Broadridge Corporate Issuer Solutions, PO Box 1342, Brentwood, NY 11717, with a direct line at (866) 321-8024 for shareholder inquiries. This relationship is critical for maintaining accurate ownership records for a company with a market cap that sits near the reported $2.3+ billion level.

Community organizations are a key part of LCNB Corp.'s local impact strategy, often tied to charitable giving. While specific United Way contribution amounts aren't public for late 2025, the success in wealth management clearly supports local community engagement. Trust, investment, and investment services assets hit a record $1.54 billion as of Q3 2025, driving fiduciary income up +23.4% year-over-year for the quarter. This growth in fee income reflects strong local service traction, which often correlates with community investment.

Correspondent banks are essential for interbank services and managing liquidity, particularly during periods of balance sheet adjustment. LCNB Corp. has been deliberately reducing its balance sheet, with total assets decreasing to $2.244 billion as of September 30, 2025. These external banking relationships help manage the flow of funds and maintain necessary correspondent balances while the bank works through the payoff of lower-rate assets and maturities of low-rate investment securities, which expanded the Net Interest Margin to 3.57% in Q3 2025.

For originating loans, LCNB National Bank relies on secondary market investors to purchase certain assets, which frees up capital. The Q1 2025 report gives us a concrete example of this flow: the company originated $84.9 million in loans and sold $21.5 million into the secondary market, which generated $841,000 in gains that quarter. This activity is part of a broader strategy, though Q3 2025 saw non-interest income fall 11.0% year-over-year, primarily due to lower net gains from loan sales.

Here's a quick look at some of the key metrics tied to these operational partnerships as of the third quarter of 2025:

The reliance on external service providers like Broadridge for administrative tasks is clear, while the correspondent bank network supports the ongoing balance sheet optimization efforts that saw net loans decline to $1.667 billion. The success in the wealth management area, which feeds fiduciary income, shows the strength of the local relationship model, even as the bank manages its asset base down from $2.307 billion at the end of 2024.

LCNB Corp. maintains several key operational relationships that support its core banking and administrative functions:

• Transfer Agent: Broadridge Shareholder Services.
• Community Impact: Supported by strong fiduciary income growth of +23.4% YoY in Q3 2025.
• Liquidity Management: Dependent on correspondent banks during asset reduction phase.
• Loan Sales: Generated $841,000 in gains from selling $21.5 million in loans in Q1 2025.

Finance: review the impact of the 11.0% year-over-year drop in non-interest income from loan sales on the Q4 2025 projections by Wednesday.

LCNB Corp. (LCNB) - Canvas Business Model: Key Activities

You're looking at the engine room of LCNB Corp., the activities that drive the bank's day-to-day and strategic execution as of late 2025. It's all about managing the balance sheet and integrating past growth moves.

Core commercial and retail deposit-taking and lending operations remain the bedrock. This involves the daily work of managing the deposit base-checking, savings, money market, and CDs-and deploying that capital into commercial, industrial, consumer, and agricultural loans across the service area in Ohio and Northern Kentucky. For the third quarter ending September 30, 2025, net interest income hit $18.1 million. Also, the bank's total assets stood at $2.244 billion as of that same date.

The focus on managing and integrating recent strategic acquisitions is still a major activity. You saw the closing of the Eagle Financial Bancorp, Inc. acquisition in the second quarter of 2024. That deal brought in about $137 million in deposits and $141 million in total loans from Eagle's three Cincinnati locations. The Q3 2025 results reflect the ongoing effort to optimize the combined entity following that and the Cincinnati Federal deal.

Next up is expanding LCNB Wealth Management services. This is a key non-interest income driver. Momentum is building here, with trust and investments and investment services assets hitting a record $1.54 billion at the end of the third quarter of 2025. This growth contributed to a 23.4% year-over-year increase in third-quarter fiduciary income.

Finally, disciplined balance sheet management is critical to profitability. Management executed planned actions, like decreasing higher cost certificates of deposit and managing loan payoffs, which directly impacted the margin. This strategy successfully expanded the tax equivalent net interest margin to 3.57% for Q3 2025, a significant jump from 2.84% in Q3 2024. Here's a quick look at some key performance indicators around that time:

The focus on controlling noninterest expense also drove a meaningful improvement in the efficiency ratio compared to both the prior year and the prior quarter. Finance: draft the 13-week cash flow view incorporating expected Q4 deposit trends by Friday.

LCNB Corp. (LCNB) - Canvas Business Model: Key Resources

You're looking at the core assets LCNB Corp. uses to deliver its value proposition. These aren't just line items; they are the foundation of their community banking model, so let's look at the hard numbers as of late 2025.

The balance sheet strength is a primary resource, giving them the capacity to lend and absorb shocks. As of the third quarter ending September 30, 2025, LCNB Corp. reported Total Assets of $2.244 billion. This scale, combined with a strong capital position, underpins their operations.

The regulatory and capital base is crucial for any bank holding company. The LCNB National Bank charter allows them to operate as a nationally chartered member bank. This is supported by their equity base; total shareholders' equity stood at $269.870 million as of September 30, 2025. That's the regulatory cushion they work with.

Physical presence is key for relationship banking. The physical branch network spans operations across multiple counties in Ohio, including Butler, Clermont, Clinton, Fayette, Hamilton, Montgomery, Preble, and Warren Counties. This aligns with the stated resource of a physical network across 10+ counties in Ohio and Northern Kentucky. The team is the engine here, with management specifically highlighting the ongoing dedication of their associates as a factor in their success.

The wealth services component is a growing, high-value resource. LCNB Wealth Management assets hit a record of $1.40 billion at March 31, 2025. Management noted seeing over a 300% increase in assets under management at newly acquired branches over the preceding 12 months, showing the team's effectiveness in cross-selling. Here's a quick look at the scale of these key resources:

The experienced team is tasked with maintaining asset quality while driving growth. For instance, non-performing assets to total assets remained low at 0.20% at December 31, 2024. That level of quality is a direct reflection of the team's underwriting and management discipline.

The resources also include the tangible assets supporting the relationship model:

• LCNB National Bank charter, a national banking association since 1877.
• Physical locations across multiple Ohio counties.
• Fiduciary income contribution of $2.2 million in Q1 2025.
• Loan origination activity, with $88.8 million originated in Q2 2025 alone.

Honestly, the combination of a solid balance sheet and deep local market penetration is what lets them compete against bigger players. Finance: draft 13-week cash view by Friday.

LCNB Corp. (LCNB) - Canvas Business Model: Value Propositions

You're looking at what LCNB Corp. offers its clients-the core reasons they choose this bank over others in the region. It's all about being a local partner with the scale to handle complex needs.

Full-service community banking for personal and business needs

LCNB Corp. provides the full spectrum of banking services for individuals and businesses across its footprint. This means you can handle everything from basic checking and savings to more involved personal and agricultural lending right there. The bank's scale supports this breadth of offering; as of March 31, 2025, LCNB Corp. reported total assets of $2.30 billion.

The lending side of the business shows this commitment to local commerce, with net loans standing at $1.71 billion on that same date. The bank is clearly focused on deploying capital locally to support its customer base.

Relationship-based service model with a local focus in Southwest Ohio

The value here is the local focus, which translates directly into relationship banking. LCNB Corp. is headquartered in Lebanon, Ohio, and its subsidiary, LCNB National Bank, serves customers across Butler, Clermont, Clinton, Fayette, Franklin, Hamilton, Montgomery, Preble, Ross, and Warren Counties in Southwest and South-Central Ohio. This deep geographic presence is key to maintaining those personal connections.

This local commitment is also reflected in their profitability metrics, showing the model is working. For instance, the net interest margin (NIM) expanded to 3.25% in the first quarter of 2025, reaching its highest level in seven quarters, which suggests effective local balance sheet management.

Comprehensive wealth management and trust services for high-net-worth clients

For clients needing more sophisticated financial planning, LCNB Corp. offers dedicated wealth management and trust services. This capability is a significant value driver, especially as the bank integrates its recent acquisitions. LCNB Wealth Management assets under management (AUM) hit a record $1.40 billion as of March 31, 2025, representing a 7.4% year-over-year increase.

This service line directly contributes to fee income stability. Fiduciary income for the first quarter of 2025 was $2.164 million, which was up 9.7% compared to the prior year period. That's solid, dependable growth from specialized services.

Strong asset quality with nonperforming loans at 0.28% of total loans (Q1 2025)

A core value proposition for any bank is the safety and soundness of its balance sheet. LCNB Corp. maintains what management calls historically strong asset quality. You can see this clearly in the metrics from the first quarter of 2025.

Total nonperforming loans were reported at $4.9 million, which equates to 0.28% of total loans at March 31, 2025. Furthermore, the ratio of nonperforming assets to total assets was just 0.21% at the end of Q1 2025. The bank's management indicated they do not foresee additional losses on these specific loans, given the adequate provision set aside.

Here's a quick look at how key financial figures from the first half of 2025 support the overall value proposition of stability and growth:

The bank is defintely showing momentum, with Q2 2025 EPS improving to $0.41 and the NIM further expanding to 3.47% in that second quarter.

You should review the latest 10-Q filed November 5, 2025, for the most current asset quality and AUM figures to see if the trend continued through Q3.

LCNB Corp. (LCNB) - Canvas Business Model: Customer Relationships

Personal and relationship-based service through local branch staff

LCNB National Bank maintains convenient banking locations across Butler, Clermont, Clinton, Fayette, Franklin, Hamilton, Montgomery, Preble, Ross, and Warren Counties, Ohio, plus Boone County, Kentucky. The bank offers services for all personal and business banking needs, including checking, savings, personal lending, and business lending. The leadership team combines local market expertise with deep banking industry experience, guiding the ongoing commitment to community banking and long-term client relationships.

Dedicated wealth management advisors for trust and investment accounts

LCNB Wealth Management advisors tailor Trust and Asset Management services to client preferences to help create unique family legacies. The investment services division has increased assets under management by over 300% at newly acquired branches over the past 12 months, as noted in the Q2 2025 report. Fiduciary income for the first quarter of 2025 was $2.2 million, marking a 9.7% increase year-over-year.

Community-oriented approach, building long-term local ties

LCNB National Bank has a long tradition for building strong relationships with customers and communities. The bank continually strives to exceed customer expectations. The company's strategy concentrates on delivering comprehensive financial services to local communities. The Board of Directors has determined that all directors, with the exception of three named individuals, are independent directors as of the April 2025 proxy filing. The company declared a cash dividend of $0.22 per common share for the third quarter of 2025.

Self-service options via online and mobile banking platforms

LCNB provides online banking and mobile app services for personal and business banking needs. The company offers a Trust Login and Investment Services/LPL Login for specialized self-service access. Industry-wide, over 83% of U.S. adults used digital banking services as of 2025. Furthermore, 72% of global banking customers prefer using mobile apps for core banking services in 2025.

• Online Banking Login Available
• Trust Login Available
• Investment Services/LPL Login Available
• Mobile App Available for Apple and Android Platforms

Finance: Review the Q3 2025 digital transaction volume against the industry average of 60.4% of all U.S. banking transactions made via mobile devices for 2025.

LCNB Corp. (LCNB) - Canvas Business Model: Channels

You're looking at how LCNB Corp. gets its services-from basic checking to complex trust management-into the hands of its customers across Ohio and beyond. It's a mix of the traditional, face-to-face banking you expect, and the digital tools that keep pace with modern expectations.

Physical branch locations in Ohio and Northern Kentucky

LCNB National Bank maintains a physical presence to support its relationship-based service model, serving customers in Southwest and Central Ohio, and integrating services from recent acquisitions into new markets. While the exact branch count isn't published here, the geographic footprint covers several key counties.

The physical channel serves as the hub for personalized service and complex transactions.

• Butler County locations include Fairfield, Hamilton, Middletown, Monroe, and Oxford.
• Hamilton County locations cover Loveland, Price Hill, Anderson, Dent, Delhi, Bridgetown, and Hyde Park.
• Montgomery County includes Brookville and Centerville, plus Oakwood.
• Other serviced counties include Clermont (Goshen), Clinton (Wilmington), Fayette (Washington Court House), and Preble (Eaton, Barron Street, Lewisburg).
• Warren County coverage includes locations like Wilmington.

Online banking and mobile application for digital transactions

The digital channel, branded as LCNB eBanking, allows customers to handle most everyday banking activities without visiting an office. This is crucial because, nationally, over 83% of U.S. adults use digital banking services as of 2025, and 72% of global customers prefer mobile apps for core services. LCNB Corp. has definitely modernized its digital offering to meet this demand.

The eBanking suite provides robust functionality:

• Access accounts from desktop or mobile devices.
• Mobile check deposits are available through the LCNB Mobile app.
• Features include making transfers, paying bills online, and viewing statements up to 18 months out via eStatements.
• Customers can open new LCNB accounts digitally.

Direct sales force for commercial, agricultural, and personal lending

The lending function relies on experienced lenders who work directly with commercial, agricultural, and personal clients. The administration of this function falls to the Chief Lending Officer and senior portfolio lenders. This direct sales approach supports the loan portfolio, which stood at $1.71 billion as of June 30, 2025. The origination activity shows this channel is active; for the quarter ended June 30, 2025, the Company originated $88.8 million in loans.

LCNB Wealth Management division for investment services and trust

LCNB Wealth Management is highlighted as an important growth driver, leveraging its local, relationship-based services across its expanded footprint. The division has seen significant traction, with assets under management increasing by over 300% at newly acquired branches over the past 12 months, as noted in the July 2025 commentary. This channel directly contributes to noninterest income.

Here's a look at the scale of the balance sheet and the wealth division as of mid-2025:

The services offered through this channel are tailored to build a unique family legacy, including Customized Investment Management, Trustee services, and Financial and Retirement Planning. Securities and advisory services are offered through LPL Financial (LPL).

LCNB Corp. (LCNB) - Canvas Business Model: Customer Segments

You're looking at the core customer base for LCNB Corp. as of late 2025, based on their latest operational footprint. The bank definitely focuses on a specific geographic area, which shapes who they serve.

Individuals and families in Southwest and South-Central Ohio and Northern Kentucky form the foundational retail segment. LCNB National Bank maintains a physical presence across a defined set of Ohio counties. This includes locations in Butler, Clermont, Clinton, Fayette, Franklin, Hamilton, Montgomery, Preble, Ross, and Warren Counties, Ohio. The acquisition activity, specifically the Cincinnati Federal merger, expanded this franchise across the Ohio River into the Northern Kentucky market.

For affluent individuals seeking trust, investment, and wealth management services, the numbers show clear momentum. The LCNB Wealth Management division is a key growth area, showing strong traction post-acquisitions. Trust and investments and investment services assets reached a record $1.54 billion at the end of the third quarter of 2025. This segment is definitely seeing new client acquisition, as evidenced by the over 300% increase in assets under management at newly acquired branches over the preceding 12 months (as of Q2 2025).

Here's a quick look at how the managed assets have tracked recently:

The segments covering small to medium-sized businesses needing commercial and treasury services and agricultural businesses requiring specialized lending products are served through the core commercial banking platform. While specific segment breakdowns aren't detailed, the overall lending activity supports these groups. Net loans across the entire portfolio stood at $1.67 billion as of September 30, 2025. LCNB National Bank offers specific services for these clients, including:

• Commercial lending products
• Business lending services
• Agricultural lending products
• Treasury management services

The bank also offers standard deposit products like checking accounts, NOW accounts, savings accounts, and certificates of deposit to these business customers.

LCNB Corp. (LCNB) - Canvas Business Model: Cost Structure

You're looking at the cost side of LCNB Corp.'s operations as of late 2025. The focus here is on managing the expenses that eat into the revenue generated from their lending and service activities. Honestly, the biggest lever they've been pulling is on the funding side, which directly impacts their interest expense.

Interest Expense on deposits and borrowings (focus on reducing higher-cost liabilities)

LCNB Corp. has been actively managing the cost of its funding sources. For the nine months ended September 30, 2025, the growth in net interest income was largely attributed to the reduction in average interest rates paid on interest-bearing liabilities. This strategy was executed, in part, by taking specific actions in the third quarter of 2025, where LCNB decreased higher cost certificates of deposit as part of a planned balance sheet reduction strategy. This focus on reducing higher-cost liabilities is a key component of keeping the overall cost structure lean, especially as they manage post-acquisition integration.

Non-interest expense, including operating and marketing costs

The operating costs, which fall under non-interest expense, show some variability based on acquisition activity. For the first quarter of 2025, LCNB Corp.'s non-interest expense was $15.8 million. This was slightly up from the prior year's first quarter, primarily due to higher operating expenses related to the Eagle acquisition and increased marketing spend. For the six months ended June 30, 2025, the total non-interest expense was $1.9 million lower than the comparable period in 2024, helped by a $3.0 million reduction in merger-related expenses.

Personnel costs (salaries and benefits) for branch and corporate staff

Personnel costs are a significant, recurring component of the non-interest expense base. While the specific 2025 figures aren't fully detailed in the latest reports, we can see the recent trend. For the nine months ended September 30, 2024, salaries and employee benefit costs increased by $5.1 million compared to the same period in 2023, reflecting the expanded footprint from acquisitions. This category remains a primary driver of operating costs alongside other general overhead.

Provision for credit losses

The provision for credit losses reflects the bank's assessment of potential loan losses. You'll see a significant year-over-year improvement in the provision required for the nine-month period ending September 30, 2025, compared to the prior year, which included provisions related to the Eagle acquisition.

Here's a quick look at how the provision for credit losses trended:

The reduction in the provision for credit losses to $426,000 for the nine months ended September 30, 2025, down from $1.3 million the prior year, indicates management's view of improved credit quality or reduced need for reserving against acquired loan pools. The Q3 2025 provision was only $211,000.

Key cost management focus areas for LCNB Corp. include:

• Reducing reliance on higher-cost certificates of deposit.
• Controlling noninterest expense to drive efficiency ratio improvement.
• Managing personnel and operating expenses following recent acquisitions.
• Leveraging lower interest rates paid on interest-bearing liabilities.

Finance: draft 13-week cash view by Friday.

LCNB Corp. (LCNB) - Canvas Business Model: Revenue Streams

You're looking at the core ways LCNB Corp. brings in money, which, as a community bank, is heavily weighted toward traditional lending activities, but with a growing emphasis on fee-based services. Honestly, the story for LCNB Corp. in late 2025 is about margin management and wealth services growth.

The primary engine remains the spread between what LCNB Corp. earns on its assets and what it pays on its liabilities. For the three months ended September 30, 2025, Net Interest Income from loans and investment securities hit $18.1 million, a solid increase from $15.0 million in the same period last year. This improvement was driven by a lower average interest rate paid on interest-bearing liabilities and higher average rates earned on loans, pushing the tax equivalent net interest margin to 3.57% in Q3 2025.

The secondary, but increasingly important, revenue source is Non-interest income from fiduciary and trust services. This area is definitely a key growth driver for LCNB Corp. At the end of Q3 2025, LCNB Wealth Management reported record trust and investments and investment services assets totaling $1.54 billion. This asset growth translated to a 23.4% year-over-year increase in third-quarter fiduciary income. To be fair, this fee income stream helps stabilize earnings when net interest income fluctuates.

Other fee-based income streams, such as Service charges and fees on deposit accounts, contribute to the overall non-interest income picture. While the specific dollar amount for deposit service charges in Q3 2025 isn't isolated, the total non-interest income for the first quarter of 2025 was $5.2 million, up from $3.9 million the year prior.

Finally, LCNB Corp. generates revenue through the secondary market activities related to its loan origination efforts. This is where you see the direct impact of their lending volume on non-interest income. Here's the quick math for Q3 2025 loan sales:

The composition of revenue streams for LCNB Corp. in Q3 2025 included several key elements:

• Net Interest Income of $18.1 million for the quarter.
• Fiduciary income growth of 23.4% year-over-year in Q3 2025.
• Gains from secondary market loan sales totaling $0.7 million in Q3 2025.
• Total assets under management for Wealth Management at $1.54 billion as of September 30, 2025.

You should watch how the loan pipeline develops, as management expects a return to loan portfolio growth in the first half of 2026, which will directly impact future Net Interest Income generation. Finance: draft 13-week cash view by Friday.