LCNB Corp. secured $25 million by issuing 6.50% fixed-to-floating rate subordinated notes due 2036. This move provides critical Tier 2 Capital for the financial Holding Company , enabling it to refinance existing Debt and fund future growth, signaling Balance Sheet strength for investors.

Key Highlights

  • LCNB Corp. completed the sale of $25,000,000 subordinated notes on August 7, 2026.
  • The Subordinated Notes due August 15, 2036, feature a fixed annual rate of 6.50% for the first five years.
  • Proceeds are earmarked for refinancing existing senior indebtedness and fueling future growth initiatives.

The issuance provides a substantial boost to the financial holding company's Capital Structure , with proceeds earmarked for refinancing existing senior indebtedness and fueling future growth initiatives. It represents a significant step for LCNB's long-term strategic plans.

$25 Million Subordinated Note Offering Closed

LCNB Corp. completed the sale of $25,000,000 of its subordinated notes on August 7, 2026, via agreements with qualified institutional buyers and accredited investors. This private Placement means the notes were offered and sold without registration under the Securities Act of 1933, relying on specific exemptions. This structured offering targets sophisticated investors comfortable with its specific terms and risk profile.

Fixed-to-Floating Rate Structure Detailed

The Subordinated Notes due August 15, 2036, feature a structured Interest Rate mechanism. For the first five years, commencing from the Issue Date and extending through August 15, 2031, the notes will bear a fixed annual rate of 6.50%, with interest paid semi-annually in arrears, beginning February 15, 2027. The notes specify minimum denominations of $100,000 for transfers, with increments in multiples of $1,000, catering to institutional investors.

The hybrid rate design offers predictability in the near term while adjusting to market conditions over the longer duration.

Capital Infusion Supports Growth, Refinancing

This move aims to optimize the company’s balance sheet and reduce its overall Cost of Capital . The remaining capital will support the future growth initiatives of LCNB National Bank, bolstering its lending capacity and strategic expansion efforts. LCNB Chief Executive Officer Eric Meilstrup expressed satisfaction with the investor response, attributing it to the company’s strong performance, which includes record second-quarter results.

With a market Capitalization of approximately $283 million, the company also exhibits low short interest, standing at 1% of shares outstanding or 7.5 days of average Volume to cover as of July 15, 2026. This fresh capital infusion provides a solid foundation for LCNB to pursue its strategic objectives and enhance Shareholder value.

Future Outlook and Regulatory Position

The capital will enable LCNB National Bank to sustain its operations and expansion plans in Southwest and South-Central Ohio, aligning with its long tradition of community engagement and relationship building. The ability to issue such capital instruments demonstrates market confidence in LCNB's financial health and strategic direction. Investors will closely monitor the company's financial reports and regulatory filings, with the first semi-annual interest payment for these subordinated notes scheduled for February 15, 2027.

Analysis based on the Form 8-K filed 7 August 2026; figures verified against the filing and live market data.

This article is for informational purposes only and does not constitute financial advice. Please consult a licensed financial adviser before making Investment decisions.