LCNB (LCNB) risk factors, FY2025 10-K

LCNB's FY2025 10-K, filed Mar 11, 2026, lists 27 risk factors in 2 groups. Against the prior year's 27: 3 new, 3 dropped, 2 substantially reworded.

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Risk factors listed
272 groups
New this year
3vs 27 last year
Dropped
3since the prior 10-K
Substantially reworded
2of those kept
Section length
5k wordsItem 1A

What the changes say

  • LCNB added specific risks regarding intangible asset impairment from deposit competition and Federal Reserve leadership uncertainty.

What changed since the prior 10-K

New

  • NewRisks Related to LCNB's Operations

    LCNB’s value of intangible assets may decline, due to continued competition for deposits and other factors

    LCNB held $9.271 million in core deposit and other intangibles as of December 31, 2025, which face impairment risks from deposit competition and cryptocurrency.

  • NewRisks Related to LCNB's Operations

    LCNB’s earnings are significantly affected by market interest rates

    Uncertainty surrounding the end of the Federal Reserve Chair's term on May 15, 2026, introduces risks regarding future interest rate policy.

  • NewRisks Related to LCNB's Operations

    The banking industry is highly regulated and is thus subject to larger impacts due to regulatory uncertainty

    LCNB and its bank subsidiary remain subject to strict regulatory oversight and potential enforcement actions from the Federal Reserve, OCC, FDIC, and CFPB.

Dropped

  • DroppedRisks Related to LCNB's Operations

    The FOMC decreased the Federal Funds target range by 100 basis points during 2024 after increasing the range by 100 basis points during 2023

  • DroppedRisks Related to LCNB's Operations

    The banking industry is highly regulated

  • DroppedRisks Related to LCNB's Operations

    Outbreaks of communicable diseases 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

Reworded

  • 46% rewrittenRisks Related to LCNB's Operations

    Failure to adopt new technologies may result in customer dissatisfaction

    Added risks and implementation challenges regarding the adoption of artificial intelligence technologies to scale operations and meet customer demands.

  • 21% rewrittenRisks Related to Economic and Market Conditions

    Weakness in the economy and in the real estate market, including weakness specific to LCNB's geographic footprint, may negatively affect its financial condition and earnings

    Added potential economic headwinds from prolonged government shutdowns and the imposition of retaliatory tariffs.

All 27 risk factors

Headings as the filing states them, in filing order.

Risks Related to Economic and Market Conditions

  1. 01Weakness in the economy and in the real estate market, including weakness specific to LCNB's geographic footprint, may negatively affect its financial condition and earnings21% rewritten
  2. 02Declining 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

Risks Related to LCNB's Operations

  1. 03LCNB’s loan portfolio includes a substantial amount of commercial and industrial loans and commercial real estate loans, which may have more risks than residential or consumer loans
  2. 04LCNB’s value of intangible assets may decline, due to continued competition for deposits and other factorsNew
  3. 05Future growth and expansion opportunities may contain risks that could negatively affect us
  4. 06Liquidity risk could impair LCNB's ability to fund operations and could jeopardize financial results
  5. 07LCNB’s controls and procedures may fail or be circumvented
  6. 08LCNB’s information systems may experience an interruption, cyberattack, or other breach in security
  7. 09LCNB’s ability to pay cash dividends is limited
  8. 10LCNB must compete to hire and retain employees
  9. 11Competition for wealth management business is intense. Competitors include other commercial bank and trust companies, brokerage firms, investment advisory firms, mutual fund companies, accountants, and attorneys
  10. 12Failure to meet regulatory capital requirements could adversely affect LCNB’s business
  11. 13Changes in economic or political conditions could adversely affect LCNB's earnings
  12. 14LCNB’s earnings are significantly affected by market interest ratesNew
  13. 15Gains from sales of mortgage loans may experience significant volatility
  14. 16Banking competition is intense
  15. 17Economic conditions in LCNB's market areas could adversely affect its financial condition and results of operations
  16. 18New lines of business or new products and services may subject LCNB to additional risks
  17. 19The allowance for credit losses may be inadequate
  18. 20The fair value of LCNB’s investments could decline
  19. 21Changes in tax law and accounting standards could materially affect LCNB's operations
  20. 22LCNB is subject to environmental liability risk associated with lending activities
  21. 23The banking industry is highly regulated and is thus subject to larger impacts due to regulatory uncertaintyNew
  22. 24FDIC deposit insurance assessments may materially increase in the future
  23. 25Failure to adopt new technologies may result in customer dissatisfaction46% rewritten
  24. 26Emergence of non-bank alternatives to the financial system may result in customer disintermediation
  25. 27Climate change, severe weather, natural disasters, acts of war or terrorism, political instability, epidemics and other external events could significantly impact LCNB’s business

Other LCNB 10-Ks

  • FY2024 10-K risk factors
    27 risks

    LCNB Corp's risk profile is dominated by geographic concentration in Ohio, heavy exposure to real estate and commercial loans, and strict banking regulations.

    Filed Mar 12, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.