REGULATORY MATTERS (Tables)

12 Months Ended

Dec. 31, 2020

Regulatory Assets and Liabilities, Other Disclosures [Abstract]

Financial institutions are classified into categories based upon capital adequacy

For various regulatory purposes, financial institutions are classified into categories based upon capital adequacy:

	Minimum Requirement		Minimum Requirement with Capital Conservation Buffer		To Be Considered Well-Capitalized
Ratio of Common Equity Tier 1 Capital to risk-weighted assets	4.5	%	7.0	%	6.5	%
Ratio of tier 1 capital to risk-weighted assets	6.0	%	8.5	%	8.0	%
Ratio of total capital (tier 1 capital plus tier 2 capital) to risk-weighted assets	8.0	%	10.5	%	10.0	%
Leverage ratio (tier 1 capital to adjusted quarterly average total assets)	4.0	%	N/A		5.0	%

Summary of regulatory capital and capital ratios of LCNB

A summary of the regulatory capital of the Bank at December 31 follows (dollars in thousands):

	2020			2019
Regulatory Capital:
Shareholders' equity	$	234,092		222,065
Goodwill and other intangible assets	(61,698)			(62,744)
Accumulated other comprehensive (income) loss	(4,043)			(673)
Tier 1 risk-based capital	168,351			158,648
Eligible allowance for loan losses	5,728			4,045
Total risk-based capital	$	174,079		162,693
Capital Ratios:
Common Equity Tier 1 Capital to risk-weighted assets	12.48		%	12.21	%
Tier 1 capital to risk-weighted assets	12.48		%	12.21	%
Total capital (tier 1 capital plus tier 2 capital) to risk-weighted assets	12.91		%	12.52	%
Leverage ratio (tier 1 capital to adjusted quarterly average total assets)	10.06		%	10.06	%