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LCNB

LCNB NasdaqCM:LCNB Stock Report

Last Price

US$15.36

Market Cap

US$174.4m

7D

0.2%

1Y

-12.7%

Updated

28 Sep, 2022

Data

Company Financials +
LCNB fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance2/6
Financial Health6/6
Dividends5/6

LCNB Stock Overview

LCNB Corp. operates as the financial holding company for LCNB National Bank that provides banking services in Ohio.

LCNB Competitors

Price History & Performance

Summary of all time highs, changes and price drops for LCNB
Historical stock prices
Current Share PriceUS$15.36
52 Week HighUS$20.69
52 Week LowUS$14.73
Beta0.72
1 Month Change-5.48%
3 Month Change2.74%
1 Year Change-12.68%
3 Year Change-11.52%
5 Year Change-26.33%
Change since IPO134.95%

Recent News & Updates

Aug 16

LCNB declares $0.20 dividend

LCNB (NASDAQ:LCNB) declares $0.20/share quarterly dividend, in line with previous. Forward yield 4.94% Payable Sept. 15; for shareholders of record Sept. 1; ex-div Aug. 31. See LCNB Dividend Scorecard, Yield Chart, & Dividend Growth.

Jul 26

LCNB GAAP EPS of $0.49 beats by $0.09, revenue of $18.69M beats by $4.41M

LCNB press release (NASDAQ:LCNB): Q2 GAAP EPS of $0.49 beats by $0.09. Revenue of $18.69M (+0.1% Y/Y) beats by $4.41M. Loans, Net Increased 4.2% Year-over-Year to $1.37 Billion. Total Deposits Increased 5.2% Year-over-Year to $1.66 Billion. Credit Quality Remains Strong with Total Nonperforming Loans Declining to $0.6 Million, or 0.04% of Total Loans.

Jul 13

LCNB: A Handsome 5%+ Yield But The TBV Is Under Pressure

LCNB is a small bank focusing on certain areas of Ohio. The local approach results in an exemplary quality level of the loan portfolio. The total amount of non-accruing assets is less than 0.1% of the loan portfolio and is backed by real estate assets. A solid performance in Q1, but the TBV was sliding due to the impact of higher interest rates on the securities portfolio. The bank also repurchased more than 8% of its shares above book value, which also had an impact on the TBV/share. Introduction LCNB (LCNB) is a small bank operating in certain areas of Ohio. Last time I looked at the bank I liked the dividend yield of in excess of 4% in combination with a robust loan book with very few loans past due. The share price has now fallen by approximately 15% since that previous article was published, so I wanted to have another look at the bank as its dividend yield has now increased to in excess of 5%. Data by YCharts The quarterly results were more than alright and LCNB’s dividend remains hedged My first stop when looking at a bank traditionally is the most recent income statement as that provides a good overview of how the bank is actually performing. Dividends are paid from earnings so having a solid earnings potential is likely one of the most important factors contributing to a healthy dividend policy. In the first quarter, LCNB’s interest income decreased just slightly, by a few hundred thousand dollar to $15.1M. Fortunately the interest expenses also decreased by in excess of 20% resulting in a net interest income of $14.2M which is just about 1% lower than in the first quarter of 2021, so that’s pretty good. LCNB Investor Relations It’s not difficult to understand the operating expenses continue to increase and we indeed see an increase in the non-interest expenses to $12.25M, an increase of approximately $750,000 compared to Q1 of last year. That’s entirely contributable to the higher salaries paid by LCNB as the bank saw its wage bill increase by about $0.8M. The combination of a slightly lower net interest income and a slightly higher net non-interest expense (up from $8M to $8.7M) caused the pre-tax income to decrease to $5.5M. That includes a $49,000 loan loss provision (compared to a $52,000 credit recorded in Q1 of last year). The net income was $4.5M for an EPS of $0.38. As the current quarterly dividend is still $0.20, the coverage ratio remains very strong considering the payout ratio is just under 53%. So looking at LCNB from an earnings perspective, the dividend appears to be safe. Especially considering the total amount of nonperforming assets continued to decrease. LCNB Investor Relations The total amount of non-accruing and past due loans came in at $3.74M, a decrease of 10% in the first quarter. As most of the non-accrual loans are secured by real estate (either CRE or residential real estate), LCNB will likely be able to recoup most of the investment. LCNB Investor Relations I also like the focus on the wealth management division and the assets under management increased to almost $1B. That sounds negligible but further down the road this could become ‘sticky’ revenue: if LCNB does a good job the AUM will continue to increase which will have a positive impact on the non-interest income. The fiduciary income is approximately $1.5M per quarter. LCNB Investor Relations The exposure to securities available for sale had a very negative impact on the book value So everything is looking good at first sight: the bank is trading at less than 10 times earnings and the healthy dividend makes LCNB attractive from both an income as well as a fundamental perspective. There’s just one element bothering me: the value destruction in the ‘securities available for sale’ portfolio. As interest rates fluctuate, the fair value of this portfolio changes. As these securities are marked as ‘available for sale’ the valuation increases and decreases don’t have to be recorded on the normal income statement, but they do show up on the comprehensive income statement.

Shareholder Returns

LCNBUS BanksUS Market
7D0.2%-8.2%-5.8%
1Y-12.7%-24.8%-22.1%

Return vs Industry: LCNB exceeded the US Banks industry which returned -24.8% over the past year.

Return vs Market: LCNB exceeded the US Market which returned -22.1% over the past year.

Price Volatility

Is LCNB's price volatile compared to industry and market?
LCNB volatility
LCNB Average Weekly Movement3.2%
Banks Industry Average Movement3.4%
Market Average Movement6.9%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.8%

Stable Share Price: LCNB is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: LCNB's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1877307Eric Meilstruphttps://www.lcnb.com

LCNB Corp. operates as the financial holding company for LCNB National Bank that provides banking services in Ohio. Its deposit products include checking accounts, demand deposits, savings accounts, NOW and money market deposits, as well as certificates of deposit. The company’s loan products comprise commercial and industrial, commercial and residential real estate, agricultural, construction, and small business administration loans; and residential mortgage loans that consists of loans for purchasing or refinancing personal residences, home equity lines of credit, and loans for commercial or consumer purposes secured by residential mortgages.

LCNB Fundamentals Summary

How do LCNB's earnings and revenue compare to its market cap?
LCNB fundamental statistics
Market CapUS$174.42m
Earnings (TTM)US$20.50m
Revenue (TTM)US$73.09m

8.5x

P/E Ratio

0.9x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LCNB income statement (TTM)
RevenueUS$73.09m
Cost of RevenueUS$0
Gross ProfitUS$73.09m
Other ExpensesUS$52.59m
EarningsUS$20.50m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.80
Gross Margin100.00%
Net Profit Margin28.04%
Debt/Equity Ratio14.8%

How did LCNB perform over the long term?

See historical performance and comparison

Dividends

5.2%

Current Dividend Yield

46%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is LCNB undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LCNB?

Other financial metrics that can be useful for relative valuation.

LCNB key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio2.1x

Price to Earnings Ratio vs Peers

How does LCNB's PE Ratio compare to its peers?

LCNB PE Ratio vs Peers
The above table shows the PE ratio for LCNB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average10.9x
ISBA Isabella Bank
8.5x17.5%US$166.5m
PWOD Penns Woods Bancorp
9.7xn/aUS$162.3m
HONT Honat Bancorp
18.5xn/aUS$183.9m
RVSB Riverview Bancorp
7x-6.5%US$144.5m
LCNB LCNB
8.5x4.1%US$174.4m

Price-To-Earnings vs Peers: LCNB is good value based on its Price-To-Earnings Ratio (8.5x) compared to the peer average (10.9x).


Price to Earnings Ratio vs Industry

How does LCNB's PE Ratio compare vs other companies in the US Banks Industry?

Price-To-Earnings vs Industry: LCNB is good value based on its Price-To-Earnings Ratio (8.5x) compared to the US Banks industry average (9.5x)


Price to Earnings Ratio vs Fair Ratio

What is LCNB's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LCNB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.5x
Fair PE Ratio11x

Price-To-Earnings vs Fair Ratio: LCNB is good value based on its Price-To-Earnings Ratio (8.5x) compared to the estimated Fair Price-To-Earnings Ratio (11x).


Share Price vs Fair Value

What is the Fair Price of LCNB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LCNB ($15.36) is trading below our estimate of fair value ($35.16)

Significantly Below Fair Value: LCNB is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is LCNB forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


4.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LCNB's forecast earnings growth (4.1% per year) is above the savings rate (1.9%).

Earnings vs Market: LCNB's earnings (4.1% per year) are forecast to grow slower than the US market (14.8% per year).

High Growth Earnings: LCNB's earnings are forecast to grow, but not significantly.

Revenue vs Market: LCNB's revenue is expected to decline over the next 3 years (-9.8% per year).

High Growth Revenue: LCNB's revenue is forecast to decline over the next 3 years (-9.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if LCNB's Return on Equity is forecast to be high in 3 years time


Discover growth companies

Past Performance

How has LCNB performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


11.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LCNB has high quality earnings.

Growing Profit Margin: LCNB's current net profit margins (28%) are lower than last year (28.2%).


Past Earnings Growth Analysis

Earnings Trend: LCNB's earnings have grown by 11.3% per year over the past 5 years.

Accelerating Growth: LCNB's earnings growth over the past year (0.2%) is below its 5-year average (11.3% per year).

Earnings vs Industry: LCNB earnings growth over the past year (0.2%) underperformed the Banks industry 8.7%.


Return on Equity

High ROE: LCNB's Return on Equity (10.1%) is considered low.


Discover strong past performing companies

Financial Health

How is LCNB's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

6/6

Financial Health Score 6/6

  • Asset Level

  • Allowance for Bad Loans

  • Low Risk Liabilities

  • Loan Level

  • Low Risk Deposits

  • Level of Bad Loans

Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: LCNB's Assets to Equity ratio (9.4x) is low.

Allowance for Bad Loans: LCNB has a sufficient allowance for bad loans (972%).

Low Risk Liabilities: 97% of LCNB's liabilities are made up of primarily low risk sources of funding.

Loan Level: LCNB has an appropriate level of Loans to Assets ratio (72%).

Low Risk Deposits: LCNB's Loans to Deposits ratio (82%) is appropriate.

Level of Bad Loans: LCNB has an appropriate level of bad loans (0%).


Discover healthy companies

Dividend

What is LCNB current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


5.21%

Current Dividend Yield

Dividend Yield vs Market

LCNB Dividend Yield vs Market
How does LCNB dividend yield compare to the market?
SegmentDividend Yield
Company (LCNB)5.2%
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Banks)3.4%
Analyst forecast in 3 Years (LCNB)5.4%

Notable Dividend: LCNB's dividend (5.21%) is higher than the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: LCNB's dividend (5.21%) is in the top 25% of dividend payers in the US market (4.69%)


Stability and Growth of Payments

Stable Dividend: LCNB's dividends per share have been stable in the past 10 years.

Growing Dividend: LCNB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (46.2%), LCNB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years or that it will be covered by earnings.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

10.2yrs

Average management tenure


CEO

Eric Meilstrup (54 yo)

3.92yrs

Tenure

US$650,404

Compensation

Mr. Eric J. Meilstrup has been President of LCNB Corp. and LCNB National Bank since October 1, 2018 and has been Chief Executive Officer of both LCNB Corp. and LCNB National Bank since June 30, 2019. He se...


CEO Compensation Analysis

Eric Meilstrup's Compensation vs LCNB Earnings
How has Eric Meilstrup's remuneration changed compared to LCNB's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$20m

Mar 31 2022n/an/a

US$20m

Dec 31 2021US$650kUS$340k

US$21m

Sep 30 2021n/an/a

US$21m

Jun 30 2021n/an/a

US$20m

Mar 31 2021n/an/a

US$20m

Dec 31 2020US$772kUS$315k

US$20m

Sep 30 2020n/an/a

US$19m

Jun 30 2020n/an/a

US$20m

Mar 31 2020n/an/a

US$19m

Dec 31 2019US$526kUS$275k

US$19m

Sep 30 2019n/an/a

US$19m

Jun 30 2019n/an/a

US$19m

Mar 31 2019n/an/a

US$17m

Dec 31 2018US$243kUS$170k

US$15m

Sep 30 2018n/an/a

US$13m

Jun 30 2018n/an/a

US$12m

Mar 31 2018n/an/a

US$12m

Dec 31 2017US$289kUS$147k

US$13m

Sep 30 2017n/an/a

US$13m

Jun 30 2017n/an/a

US$13m

Mar 31 2017n/an/a

US$13m

Dec 31 2016US$249kUS$139k

US$12m

Sep 30 2016n/an/a

US$12m

Jun 30 2016n/an/a

US$11m

Mar 31 2016n/an/a

US$12m

Dec 31 2015US$188kUS$129k

US$11m

Compensation vs Market: Eric's total compensation ($USD650.40K) is below average for companies of similar size in the US market ($USD1.69M).

Compensation vs Earnings: Eric's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: LCNB's management team is seasoned and experienced (10.2 years average tenure).


Board Members

Experienced Board: LCNB's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

NasdaqCM:LCNB Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
20 May 22BuyUS$16,690Craig JohnsonIndividual1,000US$16.69
16 May 22BuyUS$2,496Takeitha LawsonIndividual158US$15.80
05 May 22BuyUS$48,960Mary BradfordIndividual3,000US$16.32
03 May 22BuyUS$49,340William KaufmanIndividual3,000US$16.45
02 May 22BuyUS$16,054Steve FosterIndividual1,000US$16.05
29 Apr 22BuyUS$16,380Craig JohnsonIndividual1,000US$16.38
25 Feb 22BuyUS$3,715Lawrence MulliganIndividual200US$18.58
23 Feb 22BuyUS$9,548Eric MeilstrupIndividual500US$19.10
01 Feb 22BuyUS$486,413John C. Lame And Susan K. Lame Irrevocable TrustCompany24,362US$20.25
19 Jan 22BuyUS$364,141John C. Lame And Susan K. Lame Irrevocable TrustCompany18,520US$19.87
27 Dec 21BuyUS$8,577Susan LameIndividual27,575US$20.11
20 Dec 21BuyUS$27,598John LameIndividual81,230US$20.69
26 Oct 21BuyUS$17,420Anne KrehbielIndividual1,000US$17.42

Ownership Breakdown

What is the ownership structure of LCNB?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders755,4856.7%
Institutions3,181,73328.0%
General Public7,418,03265.3%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 30.59% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
4.94%
Ritter Daniher Financial Advisory, LLC
561,359$8.6m-0.02%6.15%
3.92%
The Vanguard Group, Inc.
445,662$6.8m-18.85%no data
3.82%
Dimensional Fund Advisors LP
433,292$6.7m7.59%no data
1.51%
William Huddle
171,482$2.6m0%no data
1.48%
Millennium Management LLC
167,675$2.6m9.57%no data
1.37%
Renaissance Technologies LLC
155,822$2.4m-7.86%no data
1.33%
Michael Johrendt
150,698$2.3m0%no data
1.28%
Johnson Investment Counsel, Inc.
144,794$2.2m30.02%0.03%
1.25%
Spencer Cropper
141,862$2.2m0%no data
1.03%
FMR LLC
116,826$1.8m0%no data
0.97%
Geode Capital Management, LLC
110,389$1.7m-7.14%no data
0.91%
Kennedy Capital Management, Inc.
103,461$1.6m-30.63%0.05%
0.88%
Bridgeway Capital Management, LLC
100,300$1.5m41.87%0.04%
0.82%
American Money Management Corporation
93,582$1.4m0%0.23%
0.71%
William Kaufman
80,757$1.2m3.86%no data
0.67%
BlackRock, Inc.
76,311$1.2m0.81%no data
0.6%
BNY Mellon Asset Management
68,037$1.0m0.5%no data
0.56%
Stephen Wilson
63,490$975.2k0%no data
0.45%
Susquehanna Fundamental Investments, LLC
51,200$786.4k0%0.02%
0.41%
Morgan Stanley, Investment Banking and Brokerage Investments
46,291$711.0k-6.26%no data
0.38%
Assenagon Asset Management S.A.
43,024$660.8k-44.27%no data
0.36%
Steve Foster
41,262$633.8k2.48%no data
0.32%
State Street Global Advisors, Inc.
35,864$550.9k0%no data
0.31%
Acadian Asset Management LLC
35,413$543.9k124.2%no data
0.3%
Cambridge Investment Research Advisors, Inc.
34,605$531.5k5%no data

Company Information

LCNB Corp.'s employee growth, exchange listings and data sources


Key Information

  • Name: LCNB Corp.
  • Ticker: LCNB
  • Exchange: NasdaqCM
  • Founded: 1877
  • Industry: Regional Banks
  • Sector: Banks
  • Implied Market Cap: US$174.417m
  • Shares outstanding: 11.36m
  • Website: https://www.lcnb.com

Number of Employees


Location

  • LCNB Corp.
  • 2 North Broadway
  • Lebanon
  • Ohio
  • 45036
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LCNBNasdaqCM (Nasdaq Capital Market)YesCommon SharesUSUSDNov 1995

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/28 00:00
End of Day Share Price2022/09/28 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.