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We study non-Hermitian photonic lattices that exhibit competition between conservative and non-Hermitian (gain/loss) couplings. A bipartite sublattice symmetry enforces the existence of non-Hermitian flat bands, which are typically embedded in an auxiliary dispersive band and give rise to nondiffracting “compact localized states”. Band crossings take the form of non-Hermitian degeneracies known as exceptional points. Excitations of the lattice can produce either diffracting or amplifying behaviors. If the non-Hermitian coupling is fine-tuned to generate an effective flux, the lattice spectrum becomes completely flat, a non-Hermitian analog of Aharonov-Bohm caging in which the magnetic field is replaced by balanced gain and loss. When the effective flux is zero, the non-Hermitian band crossing points give rise to asymmetric diffraction and anomalous linear amplification.