Question with regards to LDAP and External storage (SMB/CIFS)

Hi can someone confirm my understanding that the combination of LDAP user authentication with the two ā€œstore/save in databaseā€ authentication mechanisms for external storage means that the users LDAP password is effectively stored in the Nextcloud database in encrypted form?

https://docs.nextcloud.com/server/13/admin_manual/configuration_files/external_storage/auth_mechanisms.html

Thanks!