Note 8 - Leases

12 Months Ended

Dec. 31, 2024

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

NOTE 8 - LEASES

LCNB has capitalized operating leases for its Union Village, Fairfield, Barron Street, and Worthington offices, for the land at its Oxford and Oakwood offices, for the Milford Lending Office, for certain office equipment, and for its ATMs. The Oakwood lease has a remaining term of 11.6 years with options to renew for six additional periods of five years each. The Oxford lease has a remaining term of 34.5 years with no renewal options. The other leases have remaining terms of less than one year up to six years, some of which contain options to renew the leases for additional five-year periods.

Lease expenses for offices are included in the Consolidated Statements of Income in occupancy expense, net and lease expenses for equipment and ATMs are included in equipment expenses. Components of lease expense for the years ended December 31 are as follows (in thousands):

	2024		2023		2022
Operating lease expense	$	959		890		616
Short-term lease expense		47		70		243
Variable lease expense		41		8		4
Other		38		29		11
Total lease expense	$	1,085		997		874

Other information related to leases at December 31 are as follows (dollars in thousands):

	2024			2023			2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,011			911			623
Right-of-use assets obtained in exchange for new operating lease liabilities	$	167			—			370
Weighted average remaining lease term in years for operating leases		33.2			33.0			33.4
Weighted average discount rate for operating leases		3.67	%		3.53	%		3.46	%

Future payments due under operating leases as of December 31, 2024 are as follows (in thousands):

2025	$	554
2026		381
2027		353
2028		274
2029		278
Thereafter		9,714
		11,554
Less effects of discounting		5,439
Operating lease liabilities recognized	$	6,115