Lcnb's Business Segments

LCNB Corp., an Ohio corporation formed in December 1998, is a financial holding company headquartered in Lebanon, Ohio. Substantially all of the assets, liabilities and operations of LCNB Corp. are attributable to its wholly-owned subsidiary, LCNB National Bank (the "Bank"). LCNB Corp. and its subsidiary are herein collectively referred to as “LCNB.” The predecessor of LCNB Corp., the Bank, was formed as a national banking association in 1877. On May 19, 1999, the Bank became a wholly-owned subsidiary of LCNB Corp.

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. The Banks residential mortgage lending activities consist primarily of loans for purchasing or refinancing personal residences, home equity lines of credit, and loans for commercial or consumer purposes secured by residential mortgages. Most fixed-rate residential real estate loans are sold to the Federal Home Loan Mortgage Corporation with servicing retained. Consumer lending activities include automobile, boat, home improvement and personal loans. The Bank also offers indirect financing through various automotive, boat, and lawn and garden dealers.

The Trust and Investment Management Division of the Bank performs complete trust administrative functions and offers agency and trust services, retirement savings products, and mutual fund investment products to individuals, partnerships, corporations, institutions and municipalities.

Security brokerage services are offered by the Bank through arrangements with LPL Financial LLC, a registered broker/dealer. Licensed brokers offer a full range of investment services and products, including financial needs analysis, mutual funds, securities trading, annuities, and life insurance.

Other services offered include safe deposit boxes, night depositories, cashiers checks, bank-by-mail, ATMs, cash and transaction services, debit cards, wire transfers, electronic funds transfer, utility bill collections, notary public service, personal computer-based cash management services, 24 hour telephone banking, PC Internet banking, mobile banking, and other services tailored for both individuals and businesses.

LCNB Corp, a prominent player in the financial services sector, offers an extensive array of segments, products, and services designed to meet the diverse needs of its clients, including individuals, businesses, and commercial entities. Let’s delve into the various segments and offerings they provide:

1. Commercial and Industrial Loans

LCNBs commercial and industrial loan portfolio is tailored for businesses seeking financing for various operational needs. These loans serve multiple purposes, including:

- Working Capital Requirements: Financing to cover day-to-day operating expenses, inventory purchases, and accounts receivable.
- Machinery and Equipment Purchases: Loans designed specifically for acquiring essential equipment and machinery needed for business operations.

Types of Commercial and Industrial Loan Arrangements
- Term Loans: Fixed amounts that are repaid in regular installments over a set period.
- Balloon Loans: Loans that require a large final payment at the end of the loan term.
- Lines of Credit: Flexible borrowing that allows businesses to withdraw funds as needed, up to a specified limit.

Loan Terms and Underwriting
- Most loans in this category have variable interest rates that adjust based on publicly available indices, with adjustment periods typically ranging from one month to five years. The margin on these rates can vary depending on the loans terms and the collateral provided.
- Underwriting focuses on the borrower’s capacity to repay the loan backed by the cash flow from the business. When secured, collateral might include liens on assets such as inventory, equipment, or receivables, demanding thorough risk assessment and robust servicing.

Commercial Real Estate Loans

LCNB offers a comprehensive suite of commercial real estate loans secured against diverse property types, which includes:

- Commercial Properties: Loans secured by office buildings, retail spaces, and multifamily residential properties (more than two units).
- Construction and Land Development Loans: Financing dedicated to the construction and development of commercial and residential properties.

Loan Structure and Terms
- Generally, these loans amortize over a span of five to twenty-five years, with monthly principal and interest payments. Some loans may include balloon payments due within one to ten years.
- Adjustable interest rates are common, with adjustment periods typically between one to ten years, sometimes subject to established interest rate floors.

Underwriting Criteria
- Loans are assessed based on property cash flow generation capabilities, global debt service, collateral value, and the financial strength of any guarantors. LCNB typically maintains a maximum loan-to-value ratio of 75%.

Residential Real Estate Loans

In the realm of residential financing, LCNB provides various products tailored to individual homeowners and buyers, particularly for:

- First and Second Mortgage Loans: These loans are secured by residential properties, including single-family and multifamily units.
- Home Equity Lines of Credit (HELOC): These revolving credit lines are secured by the equity in the borrowers home, offering flexibility in borrowing.

Loan Features
- Mortgages are amortized over a timeframe of five to thirty years, with monthly payment structures.
- HELOCs often feature a five-year draw period with interest-only payments, transitioning into a repayment phase.
- LCNB provides both fixed-rate and adjustable-rate mortgage options, with adjustable rates subject to changes based on established indices, along with defined floors and ceilings on interest rates.

Additional Services

Beyond loans, LCNB Corp also provides various financial services that support its customers broader financial needs:

- Deposit Services: Various types of accounts, including checking, savings, and certificates of deposit that cater to both personal and commercial clients.
- Treasury Management: Tailored services to help businesses manage cash flow, liquidity, and streamline payment processes.
- Investment Services: Investment advisory services tailored to individual and institutional clients seeking portfolio management or investment advice.
- Insurance Products: Offering various insurance solutions to protect assets and manage risks.

Banking Services for Individuals and Businesses

LCNB prioritizes a customer-centric approach, delivering personalized banking services that enhance the overall client experience, which includes:

- Customer Support: Comprehensive support available through various channels, ensuring that clients can easily access assistance as needed.
- Online and Mobile Banking: Modern digital platforms allowing clients to manage their finances conveniently, make transactions, and monitor accounts securely.

Conclusion

LCNB Corp’s extensive suite of products and services signifies its commitment to serving the diverse needs of its clients across different sectors. From commercial and industrial loans to comprehensive banking and investment services, LCNB is positioned as a versatile financial partner dedicated to fostering growth, security, and convenience for both personal and commercial clients.